Bad Credit Agency

Credit Card Collection advice?

Here is the quick background. I was in credit counseling and lost my job. I then couldn't make the payments and had to leave counseling. I had a tempoary job and got a bit caught up I have a full time job again and am working on paying things off. I completely forgot about one card, got a call yesterday from a collection agency They said that i should have recieved a collection notice in the mail I said i didn't get it which was true but it was in my mailbox when i got home from work. the amount is around 5500 they offered me a settlement for 3900 but i can't do that They said that the account would go to chargeoff status and affect my credit score, and that they could file judgement against me. My boyfriend is a mortgage consultant, both him and his boss said they have never seen a credit card judgement. I'm reading all this stuff about judgements and it scares me. My boyfriend said that i should just let the collection sit there and that it probably won't do anything. I'm in MD.

Public Comments

1. It will appear on your credit report as a charge off but what you can do is work out a payment plan with the collection people. They are just trying to get as much of the money as possible all at one time.
2. Your boyfriend hasnt seen many judgments for credit cards because it is actually a recent phenomenon that the credit card companies are beginning to sue people. They do this now because they successfully lobbied for the new bankruptcy laws. It is harder to get out of paying your debt by going that route so they now spend the money to secure the debt via legal judgment. Bad advice from your boyfriend. Have him loan you 3 grand and settle out with the collection agency.

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