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Need some Credit Card Advice....My husband got hurt & out of work so all the bills are lateee, I have a Visa Gap bill which I owe $700.00, I called today to make a min. payment & they offered a payment option to pay $15.00 a month for the next 6 months & permantly close my account. Sounds like a good idea but my credit will probably go to pot. What should I do? any help please ...Thanks

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Asked by Anonymous at 7:17 PM on Mar. 14, 2011 in Money & Work

Answers (7)
  • Your credit is going to go up the creek if you are late anyway so I would take the settlement unless you want to throw it into a bankruptcy. If you settle though they will give you a 1099 at the end of the year so you will be paying income taxes on the amount Visa wrote off.

    Answer by jamesonjustines at 7:19 PM on Mar. 14, 2011

  • This is fairly good as far as these situations go. It could be so much worse than paying this thing $15 a month then closing your account.

    Answer by wildflowers25 at 7:23 PM on Mar. 14, 2011

  • If you can keep making the minimum payments I would just do that. But make sure you get in writing how they are agreeing to handle the situation and how it will affect you.

    Have you considered babysitting in your home. when I worked 3rd shift I had a lady who had my daughter from 6pm till the next morning only a few hours of that time was my daughter awake since she went to bed about 8:30 and she got $40 a day.

    Answer by kayslay at 7:24 PM on Mar. 14, 2011

  • If you can make the minimum payment, then do it. Don't let them close your account. It does wreck your credit. Even if you close your account on your own, your credit takes a hit, but not as bad. As long as you can make the payment, make it.

    Answer by jesse123456 at 7:25 PM on Mar. 14, 2011

  • If they are going to close the account anyway, it's best if you go with the payment plan... If you are that far behind, then chances are they will send it to collections soon if you don't take their offer.

    Answer by laird6372 at 2:55 AM on Mar. 15, 2011

  • You don't want to go with their offer. They are going to write it off and send you a 1099 next year for the difference because it is more than $600. You will be required by the IRS to file the 1099 and pay tax on the $ just like it was a paycheck.

    How much is the minimum? It can't be that much if the total is only $700. You do not want your credit wrecked over $700! Some creditors will let a you have a couple of late payments and not report them. It is a lot easier to recover from a few late payments than it is a creditor closed and written off debt.

    Answer by yourspecialkid at 11:31 PM on Mar. 15, 2011

  • Accept the agreement and pay a little more each month if you can. Get rid of that debt!

    Answer by tasches at 8:31 PM on Mar. 16, 2011

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