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2 Hours before Charge off...need advise


dealornodeal
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Hi

I had posted the same question last night under settlement but did not got an answer yet..but time is running out CITI Biz CC tells me this option is running out today 3PM.

I don't know if they pulling my chain...but I need the general opinion of should I take a payment plan with them or let the account (5K) charge off and can I settle with them after that.

Please I need some input:roll: :confused:

Thamk you very much.

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For the most part "charge off" doesn't mean squat to us debtors. OC's throw it around like it means something bad to you, and "debt fixers" claim its a milestone of some sort...but...really, all it means is "charge against income for tax purposes". It means the OC gets to move it from one bucket to another on their P&L. Don't sweat it....

Now....if you have money to work with...and their offer is good...go for it. If you don't have money, this doesn't change anything. The offer may or may not get better...but charge off doesn't signal that in any way.

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But, doesn't a charge-off look significantly worse on your credit score (and its affect on your credit score)? I guess if you've missed five or six payments then your credit is already hurting, but after a charge-off some companies will take you straight to court.

Yes...this is what happened with me and Chase Bank...so far the only one draged me to court.

This is Citi....I have many accounts with CITI..and this "dead line" they called me on is CITI BIZ...

By the way if you make one arrangemnt with them about the CC BIZ card..does this affect it in anyway the other accounts?

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But, doesn't a charge-off look significantly worse on your credit score (and its affect on your credit score)? I guess if you've missed five or six payments then your credit is already hurting, but after a charge-off some companies will take you straight to court.

It is worse, yes, but I'm not sure about "significantly". As you said, the "LATE 120" or "LATE 150" prior to the actual "CO" probably hurts your FICO at least as much.

As for CCs suing after CO, I don't think there's a hard and fast rule about that. Again, some of the "debt fixers" (and the CA's too, for that matter) wave this at you to panic you into something, but...there are many, many people who have posted here with CO's that are years old and they've never been sued.

Too many variables to predict.

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By the way if you make one arrangemnt with them about the CC BIZ card..does this affect it in anyway the other accounts?

Hard to tell. By agreeing to pay one, you've shown them you've got money. There's a real good chance they'll want more. Theorectically, a BIZ card might be handled by a different department, but a BIZ card with a personal guarantee might not.

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For the most part "charge off" doesn't mean squat to us debtors. OC's throw it around like it means something bad to you, and "debt fixers" claim its a milestone of some sort...but...really, all it means is "charge against income for tax purposes". It means the OC gets to move it from one bucket to another on their P&L. Don't sweat it....

Now....if you have money to work with...and their offer is good...go for it. If you don't have money, this doesn't change anything. The offer may or may not get better...but charge off doesn't signal that in any way.

Thanks for the input...here is the Update I just called Citi Biz but the offer sucked..

Basicly here is the detail

6K debt

5 Year plan $102

1 Year plan $61

Which will still leave me with the compleate balance to pay off.

Or $4280 one pay off in total.

Thats only a $1798.40 discount from total bal.

Well the lady told me that now it goes into CO and the people want to see ALL and you can't make a deal with them.

Is that true????

Please let me know.

Thanks so much:)

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A "settled " acct. is going to haunt you longer than "paid after CO". It seems like a great time to take their payment offer, and work in PFD clause in your agreement. Or PIF now with RE AND PFD clause. Both have worked for me. But, I guess I've been REALLY lucky lately. I wish you well.

ps:I am very new at this.

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Thanks for the input...here is the Update I just called Citi Biz but the offer sucked..

Basicly here is the detail

6K debt

5 Year plan $102

1 Year plan $61

Which will still leave me with the compleate balance to pay off.

Or $4280 one pay off in total.

Thats only a $1798.40 discount from total bal.

Well the lady told me that now it goes into CO and the people want to see ALL and you can't make a deal with them.

Is that true????

Please let me know.

Thanks so much:)

Well, it sounds like they're getting hard nosed with you--be careful. Also, no-just because it charges off DOES NOT mean they won't work with you later. They're blowing smoke up your yaa-hoo. If you have the money to settle this, go ahead--but I guess I'd opt for the payment plan over the settlement. Worse comes to worse and you end up filing the Ch 13 this can be included then I believe. Gosh...what horses butts--here you are trying to do the right thing and they still kick ya in the teeth!!!!

Elyse

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Well, it sounds like they're getting hard nosed with you--be careful. Also, no-just because it charges off DOES NOT mean they won't work with you later. They're blowing smoke up your yaa-hoo. If you have the money to settle this, go ahead--but I guess I'd opt for the payment plan over the settlement. Worse comes to worse and you end up filing the Ch 13 this can be included then I believe. Gosh...what horses butts--here you are trying to do the right thing and they still kick ya in the teeth!!!!

Elyse

Hi Elyse

Went to a BK Laywer and BK 13 is the only option for me...but I don't want to do BK13 will deal with each one one by one..I hope I can drag it out till I either have a settlement to offer or wait for SOL to kick in.

The only one I agreed with a payment plan so far was BOA I still have a checking account...(I don't use it though) with them.

I just figured its not worth to mess up all with BOA I might still use them in the (financial) future.....

I orderd the Book "Good Credit is Sexy" with tye CD and letter examples. I am looking forward to this info, I believe it will help.

This way I can help others too.:wink:

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Well the lady told me that now it goes into CO and the people want to see ALL and you can't make a deal with them.

Is that true????

Its really hard to be 100% certain about such things...but...in general, a CO is more of an event to them than it is to us. When a CC does a CO, usually that means that it moves from the "we're gonna badger you until we get all the money plus interest" to the "we're gonna get what we can out of this" category. Sometimes that means they take a look at your credit reports, don't see any obvious big ticket items, and decide to put this on the back burner for awhile. Sometimes that means "wow, look at all they owe, lets get ours before the rush hits" and the decide to sue. Sometimes it means "we need a tax break" so they decide to actually write it off, and sell it to a JDB.

Instead of worrying about the games they're playing...think about what you can afford to do. If, after you pay the rent, feed your family, and cover your transportation costs, you have money to work with...figure out how much you can afford to pay...and offer it to them. If they turn you down, well, too bad...you can't do any more. If you don't have money to work with...again, too bad...concentrate on looking after your own.

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