Settle or Pay in full

[gamecockcountry]

I've got 4 charge offs with Cap 1. (1 is an hsbc that they took over). I know Cap 1 is hard to get rid of. I'm hoping to qualify for a mortgage soon so I'm trying to just get this debt resolved. I know paying off won't do much if anything for my score. It is well within SOL (about a year old).

 

3 of them are lower balances that I can pay in full.

 

The 4th is about 1800. I have the funds to pay in full. They have offered to settle for $786. Obviously that number is a lot more attractive. The letter does state settled in full.

 

Is there a benefit to paying it off in full? If there is I will.

[shifter]

no.

 

try to get a settlement on the lower balances also.

[mizliz1011]

I agree...

[hegemony]

make sure there is a clear agreement that no remainder will be sold...

 

and prepare yourself for a 1099...

[Cappy]

no.

 

try to get a settlement on the lower balances also.

Don't you pax tax on the amount saved on the settlement? I think it's considered as extra income

[gamecockcountry]

make sure there is a clear agreement that no remainder will be sold...

 

and prepare yourself for a 1099...

 

Yeah that letter says that any settlement difference of 600 or more may be reported. This would be a $1000 difference so I'm sure I'd get a 1099.

 

Part of me just wants to pay it off in full and be done with it.

[bmfmustang]

I've got 4 charge offs with Cap 1. (1 is an hsbc that they took over). I know Cap 1 is hard to get rid of. I'm hoping to qualify for a mortgage soon so I'm trying to just get this debt resolved. I know paying off won't do much if anything for my score. It is well within SOL (about a year old).

 

3 of them are lower balances that I can pay in full.

 

The 4th is about 1800. I have the funds to pay in full. They have offered to settle for $786. Obviously that number is a lot more attractive. The letter does state settled in full.

 

Is there a benefit to paying it off in full? If there is I will.

If it is in SOL UW will make you pay before you can get a mortgage.

[gamecockcountry]

Question about the 1099's

 

I know the threshold for a creditor issuing them is $600. Is it 600 total from the creditor or 600 per account. I have the 4 chargeoffs from the same creditor. I already paid one in full since it was smaller. If i settle the rest it would be 3 accounts all from Cap 1. So will they issue a 1099 based on the combined discount? Or will I be ok if I keep each individual settlement under the 600?

[mizliz1011]

keep each individual settlement under 600/ each card is a different settlement. this is OC's...not CA's or JDB's