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gasping

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settlement versuses paying total amount over time
Is it better for my credit to accept a settlement on credit card debt or to make payments and pay total amount owed over time

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Top Contributor
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Hi

I can't say for sure, but my opinion would be that it would not make a difference because the account is already a derogatory and it will stay a derogatory no matter what you do. If you make any agreements to set up a payment plan to pay the debt, you better make sure that you will be able to make every payment and on time, because if you don't you will get more recent missed payments on your report and may also even restart the clock on the statute of limitations.

Not sure if it is the right thing to do or not, but I would make sure I could do a pay-in-full (even for a settlement) rather than a payment arrangement.

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