Credit card company debt settlement figures
Credit Card Amount owed is $25,000- Discover settlement offer is approximately $17,000 – (65%) -1099 reporting & cancellation of card is required. I am 70+ – my daughter (authorized user on card) incurred the debt. I know I would take a credit hit but I’m not sure it makes a big difference at this point. We went thru this once before – paid off debt with a $10,000 transfer balance plus cash to pay off entire balance. I’m having some health issues & the settlement figure / debt being taking care of immediately is tempting at this point. Please -your thoughts/advice? If the settlement was already agreed to, can you cancel (similar to contract law where you have 3 days to cancel)? I believe the $9,000 plus forgiveness would be treated as ordinary income on my taxes – to be expected. I don’t see any other significant negative consequences. I do have the money to do this – looking very much forward to your comments.
Terry Says
You need some specific advice — and you can get it by calling the National Foundation for Credit Counseling at 800-388-2227. I urge you to do it immediately — BEFORE signing anything.
If your credit is already ruined, it might not make sense to pay anything — or maybe just a small-agreed-upon monthly amount. You can trust their advice.
AND, you need to get your daughter off this credit card — AND off your credit report.
They can help. Please write back and tell me what they advise.
