Should I settle or pay a big chunk?

[indebt77]

Hello guys.

I've got a BOA credit card that currently has a balance of $7,000. I've been late making the pmnt twice and 30 days late twice now. The rate is at 31% which is killing me. I've got someone willing to pay off the account settling for 80% but after reading about settling being a pretty bad mark I'm skeptical about doing that now.

The account is currently closed. I was wondering if it would be better to just make a large payment of 80% of the balance and see if I can negotiate a lower interest rate and maybe get the account reopened. Up until November of 2005 I had zero late payments for a good 2 years, ever since the account was opened.

What do you think the chances are of that happening or do you think it would be better to just go ahead and settle? It is not in collections.

Thanks so much for any help!!!!!

[Gettinout]

If you've got the funds to settle at 80% I would pay the balance down and try to negotiate a reasonable rate.

If you try to settle, you'll have to wait until the account is 150 days past due and wouldn't be worthwhile unless you get a settlement on 60% or less. Yes your credit will take a whackin.

Go to my profile and search my previous posts. I put together some rough numbers on settling. It may help.

Gettinout