Ask Bill your personal finance question

Information on Debt Settlement

Is it okay to choose to pay a settlement from a credit card company rather than the full balance? Explain?

Is it okay to choose to pay a settlement from a credit card company rather than the full balance? Explain?

Read full question
Bill's Answer
3.6
/5.0
(7 Votes)
Bills.com | Find Learn Save

Both a settlement and a payoff will result in the account reporting a $0 balance being reported on your account. However, if preserving your credit rating is a key concern, you may wish to pay off the balance in full rather than settling for less than the total due. Generally speaking, creditors will only settle on accounts which are already significantly delinquent; therefore, if a creditor is offering to settle your account, the account delinquency is likely already damaging your credit rating. If your goal is to preserve your credit rating, then paying the account in full before the account becomes delinquent is probably your best choice. However, if you are simply trying to save as much money as possible, you should probably attempt to negotiate a settlement with the creditor; keep in mind that you will likely need to allow the account to become delinquent before the creditor will be willing to settle with you.

If you do decide to settle with your creditors, you may wish to hire a professional debt negotiation organization to assist you in obtaining the most favorable settlements possible. You certainly can negotiate with your own creditors, but many consumers choose to seek professional assistance which can save the consumer time as well as leverage relationships that professionals have built with various creditors. For more information about debt relief options available to consumers, you should visit the Bills.com website. Also, if you submit your contact information at "Debt Relief Savings Quote", we can have one of Bills.com partner providers contact you to discuss the options available to you.

I wish you the best of luck in resolving this debt, and hope that the information I have provided helps you Find. Learn. Save.

Best,

Bill

www.bills.com/

3.6
/5.0
(7 Votes)
0 Comments
1500 characters remaining
loading...