Paying Off Debt Using Equity
CC debt = 20K
IRS = 20K
My husband and I brought a house and totally gutted and remodeled house. Talked to the loan officer and after appraisal we have 60k in equity. Should we take out a equity loan to pay off debt or continue trying to pay off debt monthly?
I would pay off the loan. As time passes the utility company may be more willing to settle for less.
I had a outstanding debt to a CC company and they said that they would settle for less (couple hundred) also. So I paid, when I checked my credit report years later they stated that the account was a Charge Off because I did not pay the full amount of the debt. Be careful.
Make sure all the creditor info is correct and if anything is wrong dispute it before you make a deal to pay.
You must get in WRITING from the collection agency exactly how they will record your payment for less than full amount.
Brenda
PAYS AS AGREED in writting is the only way to go.
I got stiffed by some ex-partners on a credit card, verbally agreed that the 4200 wouldbe payment in full.
2 or 3 yrs later, a refi application was denied. It was tought to track down the ageny and then a copy of my files once I did.
will either/both take you out 90-late or what ever status they have if you set up a solid payment plan
CB has good tips there...always get it in writing --I have similar experience--Not student loan though---I negotiate and spoke to the manager, got 30% reduction, and requested they do not even enter it to my report. It was agreed and done.....
Carolynne,
Using a repair agency is not a total neccesity. I did my own. My dad used an agency. I used the same techniques the agency did with a library book and from tips I got from this site. My dad liked the fact that somebody did most of the work for him. It depends on what you want to do.
Be careful though. There are a lot of bad companies out there. If they tell you that they have "secret ways" of removing bad credit, they are probably doing something unethical. Make sure they tell you what they are going to do.
I wanted to thank each and every one of you that gave me tips on how to do this myself. It was greatly appreciated.
With that new law going into effect about getting a free credit report for free once a year (our area starts June 1st) and all areas will be available by Sept 1st. This will afford me a chance to get my reports.
I will keep you updated.
thank you. =0)