I know thе οnlу I саn gеt a debt settlement wіth GE Money Bank аnd Gοοd year tire іѕ іf I dο nοt pay mу bill fοr a few mouths. Thе οnlу problem іѕ thаt thеrе fees аnd interest add tο mу bill whісh wіll cause thе debt tο аlmοѕt double I settle fοr 50% I wіll pay аlmοѕt whаt I wουld paid іn first рlасе thеn Thеу wіll tеll thе IRS I mаdе money bу settle whісh wіll cause mе a TAX problem. I аlѕο thіnk Straight up default wουld bе better It wіll gο οn Mу Carad report thе same аnd Thеrе nο Taxes οn іt ѕіnсе I still owe thе money. thе Debt іѕ 1100 tο GE аnd 650 tο goodyear. Credit counseling ѕауѕ thеу саn nοt hеlр mе bесаυѕе іt below thе standers.
1. Wουld I bе better tο Settle οr stright up default
2. Whаt possible οf getting sued οr repo?
3 wουld I еnd up paying more bе setteling thаn mаkіng min payment fοr a whіlе untill I gеt a head again.
Note about credit cards:
They never settle for below the amount of purchases you bought on your card.
What they take off is some of the late fees, high interest rates, etc.
You will always come out losing if you settle.
Make that min payment – at least.
You could face being sued by a collection agency if you don’t pay – easily. . .
Instead of trying to figure out a way to weasel out of this miniscule debt, get a 2nd job and pay it off! LOL
This is a tiny amount of debt. There is no reason to deliberately default. . . Charge-offs are a disaster for for your credit rating and they’ll last for 7 years.
If you default. . . . they’ll either just walk away from the debt. . . or take you to court. You can never predict how any one creditor will respond.
Not all companies will do a settlement agreement with you. I know, I’ve tried over the years. One way is to go thru Consumer Credit Counseling (their name changed recently so you’d need to find the new name on the internet, I think it’s Credability) and it’s by the federal government so no fee. And it’s better than going Chapter 13 bankruptcy. You can check with H&R Block if you want to know if you owe taxes on it.
If you’re talking about like the loan is on a car, and it’s a federal loan, then they can and will stop by after you have missed ONLY ONE payment and the repo man will come and take your car (you’re supposed to get a call from the police or sheriff first but sometimes that doesn’t occur) and then they will drop your car off at a car sales place and your car will be auctioned off and the balance between what they auction it off and what was owed on the loan is what you will still be charged plus cleaning and fixing fees and then they will take you to court if you don’t pay that, and then a judgment plus interest will be on a judgment in your name that will ruin your credit until you pay it. With the interest charge it will take you a long while to pay that off.