Debt Settlement, 7 year limit, or pay down?

[sm1239]

Hello..

I have had debt from a cc that maxed out around 5 or more years ago. I have paid very little on it since then due to being in school and not working regularly. Since graduating recently, I decided it's time to pay off my debt owed....however, I did not do my research first and after talking to an agent over the phone, I'm not sure what to do...

The agent wanted to set up monthly payments, but I said that I wanted to pay a large portion of it first and that I'd like to mail it (rather than take care of it over the phone). She said that they only deal directly with your bank account, which I feel now may be untrue. But...thinking this must be true, I told her the amount and she said that this actually is considered almost half the total amount, and that if I pay a little bit more than that, I qualify for debt settlement.

Not knowing what debt settlement meant exactly, I agreed to it after she told me that I never have to worry about the rest of it again. So....at this point she asked me for my routing number and bank account, but not having my checkbook w/ me, I couldn't give her the exact numbers. She looked up my routing number and I gave her my account number to the best of my memory (which I'm pretty sure was accurate)....then she said she would have to get back to me after getting in contact with my bank to check if it's accurate. And the payment I agreed to is now slated to go through on the 26th.

Feeling immediately after hanging up that this was too good to be true, I THEN did a lot of research on it and turns out....it sure seems to be. I now realize this is VERY bad for your credit score AND you have to pay taxes on the difference. I also read that if you do not pay on a debt for 7 years it goes off of your credit report....so basically I could have just kept not answering the phone and not paying for a couple more years....instead of trying to do the right thing and get a reduced credit score, be out a bunch of money, AND have to pay taxes for all this.

I tried calling them back to TRY and change the debt settlement to monthly payments, at least, but I'm not hopeful about this. And I'm worried there's no way out now b/c I gave them my bank account info, but I'm wondering if I'll need to VERIFY the account number before the 26th for them to legally have access to it....since I was unsure of the accuracy of the number I told them. I feel though that if what I already gave them matches the account number my bank gives them, then they can (and will) take the money.

Can anyone PLEASE tell me what to do or how to handle this. I've even considered opening a new checking account and moving my money over, but I'm scared they may sue me since I already agreed to pay. I'm really worried I've made a HUGE mistake. :/

Thank you....

[chane]

By paying it, you are re-aging the account. It would have fallen off your credit report in 2 years, now it will fall off in 7 years and will effect your credit even more because you are making it current; like it just happened.

It's a very bad move and I would do whatever you can to get out of it. Then, you should negotiate a pay for delete...which means, if you pay it off, they delete it. You must get it in writing. Don't pay it if they won't delete it.

[sm1239]

Thank you...have I already aged the account simply by agreeing to pay? Or do I actually have to PAY it for it to be brought current again?

And if I don't pay it after agreeing to, can I be sued now? Is there a way to get out of it? Maybe by telling them that I don't agree anymore since I was not informed (and encouraged) by them about choosing an option that would actually hurt my credit? Or is it legally not their responsibility....meaning I can't use that claim to get out of it?

Also, if I'm stuck now with paying, will it HELP my credit at all to start making payments again on this debt? Since it is old debt with late payments on a maxed out card....

Thanks again.

[sm1239]

Also.....if I do a stop payment to prevent them from taking the money out of my account.....will I then be in a position to negotiate pay for delete with them? Or do they still legally have a right to that money b/c I've already agreed to pay it to them?

[chane]

No, you haven't until you paid. They have to report that you paid. If they do that the account is brought to current status.

In America, you can pretty much be sued for anything at anytime. I wouldn't worry about it. Don't let them scare you with threats of being sued or whatever. I don't know if there is a way out of it. I would call and tell them to cancel it and that you will be making other arrangements.

No, it won't help your credit at all. It's a negative account no matter what you do from here on out. It might lower your overall debt, but so would getting it removed.

You can negotiate the pay for delete at anytime. You need to change your mindset about credit. Start thinking like the plaintiff instead of like the defendant. Be pro-active, not reactive. It will serve you better. Just because you owe them money doesn't mean they own you.