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MrsZ1993

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Accept pay off amount?
I'm being offered a "payoff" amount for almost $200 less than what I owed on a store credit card. Long story short, I had a store credit card several years ago that I mistakenly thought I had paid off right before moving to another state. The company went out of bankrupt/ out of business and I found out that a roughly $200 balance had grown to alittle over $500 with interest and late payments. It's been in collections with different agencies and this new agency is offering me this deal. Should I take it? How long before this debt falls off my report? It's been almost 5 years since the original debt.

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I would take the deal or offer about $150 total. They probably bought the debt for half or less of what you originally owed and will probably take even less to settle. (You are probably well beyond the statute of limitations in your state for any legal action connected to this. Probably.)  An explanation to a lender would likely be accepted and not affect your chance of obtaining credit in the future.

Although, it should fall off your report in two more years if you do not pay it. If you pay it, it will likely stay on your report for an additional 7 years from the date you paid it but show that you did pay it. It might also carry the notation that you settled for less than amount owed.

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