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Payment Plan or Settle?
I have been paying my American Express card off for about 3 years. My beginning balance was $13,153. It is currently at $5,068. The account is currently with Zwicker and Associates. My question is, should I continue with my payment plan of $250/mo. or offer a settlement for less than the remaining balance? How much will the settlement hurt my credit? My credit was down around 470 a couple years and through lowering balances and paying off debt I am approaching 600. I know that score is not great, but I don't want to ruin my hard work that got it to that point.

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Negotiate! Negotiate! Negotiate!

Hey mbs 1982, Before you pay off any of your collectons or bad debt...negotiate! Try to get the creditors to agree to delete your collections for payment. The person you call at the collection companies do not have a lot of power so it would probably be best to ask for a supervisor. Remember to be polite and keep in mind these people are in business to make money. The way it works is they buy uncollected debts from companies for pennies on the dollar. If you pay them and they do not change your status, you will just have 7 years of paid in full bad accounts on your credit reports. You want a complete deletion or pays as agrees status next to your accounts. Try to get the payment reduced first but if they will only agree to delete for full payment. Pay them BUT MAKE SURE YOU GET A PAYMENT FOR DELETION LETTER FIRST! GET IT IN WRITING FIRST! Having credit cards isn't a bad thing! Credit cards don't hurt your credit scores. Usage of the credit card does! In order to get a good credit score you have to have a good credit mix. Revolving credit (credit cards), installment credit (personal loans, car loans, mortgages, student loans). An example of a good credit mix would be:  2 credit cards, 1 mortagage and 1 car loan. Bottom line...negotiate your bad debt before you agree to pay anything. I would also recommend you go to a local credit union and aske them about their rebuilding credit programs. 600 isn't a bad score considering where you started but creating new good credit will definitely boost your credit score. Remember it's going to take time! I hope this helps. Also google how credit works to get a better understanding of credit. Also go to link below to better understand how credit works.

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sounds like you settled a few years ago and now you are want to go back on your word.     so your word or the agreement you made with them does not mean anything to you?

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