60 days past due on BofA Visa. They are offering

[Guest donlobo]

They are offering to close down the account ($20,000 balance) and have a 4year payoff plan.

1.) I heard that it is preferable for me to request the account be closed prior to/rather than let them close it. Does it reflect differently and/or make a difference on my credit?

2)If I close the account, is there a best time to do so (e.g. 60-90day past due) and then what is the best time/person/strategy for negotiating down the debt. The purchase charges are all valid, however I have been paying roughly 26% interest+late fee+++ on the same balance, for over 2years so I have no qualms about sticking it to them!!

Thanks for any input...

[TTigggers]

The payoff plan would be a good Idea.

There is a small difference on how it reports "Closed by consumer" or "closed by credit granter" don't think it hurts your score much.

If they let you close the TL and take the payment plan then thats what I would do just MHO

The sooner you close the Account the better your CR will be it will be reporting less lates and you also want to do it before it becomes a charge off or a collection account.

[m2aclark]

BOA will give you 20% at charge off, whatch the bottom of the mailing, it will have a DPD and a code in the bottom right hand corner. When you see "150XXXXX" call and offer them 20%. They'll give you 4 months to pay it out. (This does depend a little on the branch collecting, but if you can get through to the NJ branch they will take this)

[VeVe]

BOA will give you 20% at charge off, whatch the bottom of the mailing, it will have a DPD and a code in the bottom right hand corner. When you see "150XXXXX" call and offer them 20%. They'll give you 4 months to pay it out. (This does depend a little on the branch collecting, but if you can get through to the NJ branch they will take this)

I certainly wouldn't advise that someone wait for a charge off with the hope of them offering to settle for 20%. The odds of that happening are slim to none, especially with a balance this high.

[razr]

Better to close it yourself (looks better to potential lenders in the future) and take the payoff plan asap (as a previous poster said, less lates on your reports.)

-r