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Settling for less than the payoff amount - will this hurt me?
I have "fair" credit at best. In 2000, I took a second mortgage through the Money Store (now Franklin Credit) for 15K. I had some bad financial bumps in the road, but in the last 4 years I have paid on time. The current principal is 11.8K (after FIFTEEN years of payment!). I am about to offer a settlement for 1/2 that. If they accept, they will record on my report as "settled for less." How bad will this set me back, if all my other payments are currently on time? Apparently I get dinged because I don't have a major credit card and my credit history is short.

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