I don;t know what the standards are .. some ads are saying 60%… . but if you can handle 500 make sure before settling that you are not going to be listed as charge off and that they are not reporting this as income since you have probaly overpaid in late fees, charge off etc. just my hunch. Some financial gurus may have better information…If you can afford it it’s fair. It’s a simple as that. In all honesty, sure you can negotiate, but you’re going to wind up saving another $100 at the most. It’s not worth losing this offer over that much. Unfortunately, this will be filed as a charge off and settlement for less than full on your credit. really no way around that.I would say yes under the following two conditions –

1. This is full and complete settlement of the entire debt; and

2. You want this collection action removed from your credit reports

Both of these conditions must be set forth in writing and signed by them. Condition 1 is especially important, because they might package and sell the portion you don’t pay ($411.00) to a debt collector who buys uncollectable debt. And then your phone rings one day …You’re wasting your time. Paying back a defaulted/charged-off credit card will not restore your credit rating..Your credit report will be updated to a "Paid Charge-Off," which, while slightly better, is still a seriously derogatory item. Per the Fair Credit Reporting Act, a charge-off, whether paid, settled for less or not paid at all, will remain on a consumer’s credit reports for up to 7 years….so you’ll be stuck with damaged credit regardless of what you do.

If you’re going to pay off old charged-off debt anyway, then you might as well negotiate the lowest, rock bottom settlement you can possibly get, being that the negative charge-off notation is going to stay for 7 years on your credit report, regardless of whether the charge-off is paid or unpaid. …Offer 20% and go from there. Mail them a vaguely worded statement like:

I am willing to settle this matter for 20% of the original amount.Your firm must send me a written agreement on your company’s letterhead that you will accept this amount as "payment in full" and that this issue will be settled. Upon receipt of this agreement, I will mail you a money order for this amount.
====================
I advise against renewing contact with debt collectors over old charge offs…the risk of triggering aggressive collection activity or even a lawsuit is not worth a small increase in your credit score.I think it’s awesome that you want to make good on a bad debt from 4 years ago….that shows great morality, but unfortunately the credit system is not set up to reward you for this good behavior. Unless you get the company to agree to delete this account completely from your credit, in writing, before you pay them a dime, then it’s only going to drop your credit score because it updates the account on your credit and makes it a recent occurrence.

First, I would check your state’s Statute of Limitations to see if the company can legally collect this debt from you at this point. If they can, you might be better off just leaving it alone unless they’ll delete it off your credit completely. It will automatically come off your credit 7 years after the date of last activity. If they cannot legally collect the debt because of the Statue of Limitations, then you can dispute the debt through www.AnnualCreditReport.com and get it off of your credit that way.

For lots of free sample letters to negotiate with your creditors, visit http://www.credittrauma.com/free-letters/Paying this collection off will not raise your credit score because it is four years old and will still be reporting as a collection. A paid collection is still a collection. You need to try to negotiate to have this item deleted from your credit report in exchange for payment(google pay for delete). Get this in writing before making payment. You should do all of your communications by mail so everything will be in writing. You should have room to negotiate because the statute of limitations for open accounts is 3 years in most states. Just be careful to not reset the clock on this.

BTW: If you are going to apply for a mortgage in the near future, most lender will require you to pay all outstanding debt before closing.Stop! Don’t do a thing until you check your states Statutes of Limitations (SOL) on debt. You can do so at the link at the bottom of this answer.

In most states the SOL for credit card debt is only 3 or 4 yrs. You, very well, may be past the SOL which means the debt is no legally uncollectible.

Paying a charged off debt is not going to help your credit one single ounce. Nada, zip, zilch. Also someone wrote sucks for the person who didn’t get paid for your goods. Remember, they still wont’ get the money. Who you are paying is some junk debt collector who bought this debt for pennies on the dollar. They will make the money. Don’t let people make you feel like you are scum. things happen.

http://creditrepairinfoservices.com/blog/does-paying-charged-off-accounts-help-my-credit-score
http://www.comebackcredit.com/statute-of-limitations-on-debts/I am Mrs Vanilla Pam,currently living in New florida,USA.I am a widow at the moment with three kids and i was stuck in a financial situation by may 2009 and i needed to refinance and pay my bills.I tried seeking loans from various loan firms both private and corporate but never with success,and most banks declined my credit.But as God would have it,i was introduced to a man of God a private loan lender by name Mr Lacus Robinson who gave me a loan of $75,000USD and today am a business owner and my kids are doing well at the moment.So dear,if you must contact any firm with reference to securing a loan with low interest rate of 3% and better repayment plans and schedule,please contact Mr Lacus Robinson.He doesn’t know that am doing this but am so happy now and i decided to let people know more about him and also i want God to bless him more.You can contact him through his email at lacuslendingfirm@gmail.com

The best information for debt settlement program

Tags | debt settlement