yehong Posted August 1 Share Posted August 1 Hello. Need some help with this situation. If someone has following two options, which one would you prefer? Total Unsecured Debt: $27000 called Credit Card companies, following two options are being offered: Option A: Pay off balance in 60 months at 0%. Accounts will be reported current after 3 payments. Option B: Settle at 50% of total balance and pay in 12 months. Quote Link to comment Share on other sites More sharing options...
sonisan11 Posted August 3 Share Posted August 3 Neither! If you have a card that will accept transfers with 0% interest, transfer the balances into it. Next, pay the balance by using your net income (income - expenses = net cash flow) into it on a monthly basis and get it paid off or down to 20% utility to improve your credit score. It will take dedication, but it's worth it. If you have a home, get a line of credit to pay it off then apply the method above to pay off the line. Good luck. Quote Link to comment Share on other sites More sharing options...
Glacier Posted August 7 Share Posted August 7 With option B, the question is how will the accounts report once the 50% balance is paid? Will they show settled for less than full amount? Will they still show a balance? Are they willing to delete the accounts once the 50% is paid? Based upon ONLY those 2 scenarios, A is potentially better, as the accounts will be brought current, and as long as you make payments on time, should actually help your credit some. Quote Link to comment Share on other sites More sharing options...
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