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Seven Year Settle


out4good3
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I was talking to a friend yesterday and he told me that he has finally settled with Discover for $500 of an $1800 bill and that they would note the account as paid. I asked him would they note the account as paid as agreed or paid charge off and he was unsure of the difference. I asked him when was the last date of activity on the account and he told me that the last time he made a payment was in 98. I asked him with the account about to drop off his report anyway, why on earth would he agree to settle. His thinking was that unpaid accounts stayed on reports unfefinitely until their paid. I asked him where did he get this information as it's wrong.

Apparently he's trying working on trying to get a house and he's working on cleaning up his credit, paying all outstanding balances, which is admirable in the short term of getting a house but what of the long term.

Am I mistaken in thinking that after seven years, if you pay a charged off account without benefit of a paid as agreed statement or total deletion of the account on the CR, wouldn't they just mark the account as paid-charge off in effect re-aging the bad entry with you then then having to wait another 7 years for it to drop off.

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HI and welcome to the board....

Am I mistaken in thinking that after seven years, if you pay a charged off account without benefit of a paid as agreed statement or total deletion of the account on the CR, wouldn't they just mark the account as paid-charge off in effect re-aging the bad entry with you then then having to wait another 7 years for it to drop off.

They may just mark it as paid chargeoff which is just as bad. Always negotiate for deletion or paid as agreed. However, making a payment does not extend the 7 year reporting period which always goes by the initial missed payment that led to the delinquency of the account. Check this thread on the topic:

http://www.debt-consolidation-credit-repair-service.com/phpBB2/viewtopic.php?t=9129

On another note, if he is going to apply for a mortgage, he may have to pay all outstanding balances before approved. That could be the reason why he's paying it.

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He's not interested in buying a house until at least the next year has passed. He's waiting till his two kids start school and he's rid of all his childcare expenses which are substantial.

It's just that if he had to wait anyway to buy a house and he was co close to when they'd drop off why bother settling and paying. Seems to me he'd get more mileage out of the money by putting it in the bank and using it as a down payment.

Thanks

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It's just that if he had to wait anyway to buy a house and he was co close to when they'd drop off why bother settling and paying. Seems to me he'd get more mileage out of the money by putting it in the bank and using it as a down payment.

Absolutely, I would not pay it at this point, unless he feels he "wants" to but then at least get IN WRITING, that it's to be removed or "paid as agreed"

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