I had an account with Bank of america (Credit card) for a balance of 10600.00. The account is dangerously close to getting charged off. I was contacted by Bank of America today and given a settlement amount of 4838.00 and the account would show up as "settled" and not "charged off", Should i jump at this? What do you guys think? Thanks in advance for your help.
Settled for less than the amount owed is definitely better than letting it be charged off, compounding interest, and adding any number of costs for continued interest, legal fees and collections (as allowed by law). That $10,600 and quickly turn to thousands and thousands more. The amount they are offering is just over 45%. That's certainly a reasonable offer, being that you actually owe them 100%. What is your financial position now? Can you spare the cash without draining your savings completely? Is work stable? What OTHER debts do you have? The answers to these and other questions can definitely help determine if this is a good settlement or not, but at face value, it seems fair.
