OT--Credit Question

wannabewhale · Jul 13, 2006

I know these questions have been answered but your help is appreciated.

I have been helping my brother get his credit back in check. It has been a long road-student loans-taxes etc. I have shelled out quite a bit--but alot was not his fault(divorce), After alot of work he is down to 1 credit card debt. It is approx $2500 but they will settle for $1000. He can squeak out the $1000 but after that he is tapped. He will be totally caught up. But I have heard that taking the deal hurts your credit.
Should he
A-take the deal
B-pay the $1000 down towards the final but pay the rest later on(but who knows when).

Thanks

Orangemen · Jul 13, 2006

Go to this website creditboards.com and ask there. Excellent website

teamogf · Jul 13, 2006

if he settles for $100 he will have an r5 on his credit report which shows he settled and will be on there for 7-10 years do not settle unless it is to avoid bankruptcy

DrunkenHorseplayer · Jul 13, 2006

He could get a one year $2,500 loan from a bank, admittedly at less-than-ideal interest. He would pay a lot in interest and he'd have to wait a year for a clean record but he wouldn't have to come up with all of the money right now.

WVU · Jul 13, 2006

Drunken Horseplayer said:
He could get a one year $2,500 loan from a bank, admittedly at less-than-ideal interest. He would pay a lot in interest and he'd have to wait a year for a clean record but he wouldn't have to come up with all of the money right now.

I doubt his credit will allow a 2.5k bank loan

wannabewhale · Jul 13, 2006

REALLY don't want him to borrow even if a bank would let him. I would like some of my money back. Just wondering if it would be better to have him owing no one(but me) by paying the settle or waiting and pay it all.
If everything is paid off--how long til he can get any credit?? 7 years and he will be clean?? His taxes are fully paid--student loan is caught up and no Ccards.
Thanks

bullets · Jul 13, 2006

wannabe whale said:
REALLY don't want him to borrow even if a bank would let him. I would like some of my money back. Just wondering if it would be better to have him owing no one(but me) by paying the settle or waiting and pay it all.
If everything is paid off--how long til he can get any credit?? 7 years and he will be clean?? His taxes are fully paid--student loan is caught up and no Ccards.
Thanks

Friend of mine filed for bankruptcy and a two months later he got a credit card offer in the mail. It was only $1000 limit.