Hi everyone, I am new to this so I am hoping that you can all help me. I have a $6000 debt on my citicard, and I have been out of a job since July. I just recently obtained a part-time job, so I want to pay off this debt. My account is still with Citicard, so I am working with them directly. They gave me 2 options: 1. They are reversing the interest, and my new balance would be roughly $5000, and i can make payment of 150 until it is paid off. It would take about 34 months. 2. Settlement of $1500, to be paid in 3 months. But they said i would be taxed on the difference of 4500. So my question is, which is the better option for me? I am in my late 20s, and would like to own cars and homes later on. This is the first time I am getting in trouble with debt...would appreciate any suggestions/comments from you. Thank you. Tracy
If its paid in full will they remove any neg. with the credit bureaus.if not can you afford the income on your taxes.Remember paid neg debt has the same neg, rating as paid for less.
Don't forget to negotiate your credit score at the same time you agree on a payment plan. If you are able to pay the balance in full, then you need to get them to work with you and remove any negative listing from your credit reports. A settlement or "paid" charge-off is still very damaging to your credit scores. They may tell you they can't at first, but keep pushing.
fine forum for credit repair, here I continue to be pleasantly amazed at what a fine resource this web site is for credit repair tips. I've both used advice gained here and recently shared some with others too. Tracy, you've gotten some good advice here; good luck, and post here how it went with them, OK?
