Comments on: Credit Card Debt Settlement?

By: Ed Atun

Ed Atun — Sun, 22 Mar 2009 00:20:24 +0000

Your credit score will drop below 600.

They might bundle all 3 settlements. Or do them separately. However they want to handle them for accounting purposes..

By: v b

v b — Sun, 22 Mar 2009 00:20:24 +0000

Not only will your credit be screwed ("settled" will be visible on your credit report for 7 years), you will owe income tax on the amount not paid.

By: CatDad

CatDad — Sun, 22 Mar 2009 00:20:24 +0000

Has this card already been charged-off as bad debt? If so, you need to realize that the damage to your credit has already been done and that the paying off in five years option would not be advisable give this fact.

If you are current, then the settlement will damage your credit rating, which might cause any other creditors to raise interest rates on their cards…They have the right to do this.

- Settled/forgiven debt is treated like earned income by the IRS….You’ll have to add the forgiven debt to your income on next year’s income taxes and pay whatever additional taxes on that.