Settling cc debt for less than I owe?

[kalisis]

I'm just wondering if this is even worth a try.

I have a credit card and the limit is $800. I think it's pretty much full.

I just got a final paycheck that is about $500 more than I was expecting and I'm wondering if I call the cc company and ask them if they would take the $500 to settle the account?

Either way I will put the $500 towards the account, so I guess it doesn't really matter, but if I could close that account, that would be great.

Would this affect my credit score?

[Sailor]

I don't know if credit card companies take such deals. I know collection companies do. When my medical bills went into collections, I worked out a deal with them where I paid a lot less than what I really owed. I got a lawyer for this, though. Even with his payment fee, it was less than what I would have had to pay without him.

It's worth a shot, of course. The credit card companies would rather get paid than not, after all.

[dogmom327]

My understanding is that it will show up on your credit report as settled rather than "paid as agreed". Not a good thing. I think settling an account is okay when there is no hope of ever getting it paid off fully but this isn't a lot of money and not worth the damage to your credit. Plus, I'd be surprised if they would agree to settle such a small account.

[Think of Winter]

I'm just curious. Why would you do that? Once you pay off $500, the $300 is really manageable.

[kalisis]

Yeah, I didn't think they would and I'm not sure about it showing up as settled rather than paid. So, I'll proabbly just put the money towards it and pay it off next month then.