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GJ051609

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does it hurt your credit to take a settlement offer on you credit card?

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Because you're not paying the debt in full as you agreed on when you applied for the credit card, medical service, etc, and made the purchases. Every time you make a purchase on a cc you sign an agreement that states you're responsible for the full payment being made within 90days. The credit card takes care of this for you, which is why you owe the credit card every month.

Remember, you don't HAVE to take the offer for a lesser payoff. If you insist on paying the full amount that day, they wont report it as paid off for a lesser amount than the original debt. I always recommend paying the offered amount if it's less, because the creditor offering it to you has purchased the debt for pennies on the dollar. The "offer" is actual a significant mark up. I prefer to give those blood suckers as little as possible. But yes, your report still takes a hit.

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