Question

Hi everyone.  I’m about to pay about $2000 in debt settlements and am dreading it.Hi everyone. I’m about to pay about $2000 in debt settlements and am dreading it. most of them will “go away” in 2-3 years because I’ve had them for awhile now but I hope it’s worth it and helps my credit. How have you guys dealt with your debts with tax season so far?  

Answer 1

Before paying try to negotiate a pay for delete with the creditors

Comments

@heydon30 hi! What is that? It seems pretty direct but wouldn’t they delete the collection after I pay?  

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@histochemistry it won’t immediately delete from credit after you pay unless they agree to it delete from all three credit bureaus (get it in writing). Good pay for delete and there are examples of letters you can write (before paying) or things to say on the phone to help get them to delete for payment.  

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@heydon30 this is really good to know, thank you!  will do

Answer 2

Before you pay call the creditor, often times they will lower it. I had settled my debt for half of what I owed.  

Answer 3

We are going to just settle ours and be done. We know we will be renting for another few years so it doesnt bother us that it will be on our credit for a while.  

Answer 4

Don’t forget these will show up as income with the IRS

Answer 5

They will file a 1099-C if forgiveness is over $600