Credit cards are truly a trap and becoming more so - sure a lot of people are charing un-neededs on these but lately in this economy a lot of folks are charging food and gas. Some may think better to go hungry and walk than have to deal with these fellas though.
Credit cards are what is considered an unsecured debt - houses tend to be a secured debt. When someone does not pay a credit card it is written off with all the additional penalities, late fees, very high interest, etc and it does end up being a lot more.
The collector just wants a payment. Settlements do get them a profit or they would not want offer one. It saves them work.
Great advice to get the settlement in writing with a signature and faxed if necessary. They can wait for the payment. And use a cashiers check or money order to mail them the settlement AFTER you have the written settlement agreement and you have read it.
Also have the acct. will be closed (they try keeping it open with a late settlement payment) in the document.
Remember you do not have to talk to these collectors and can do all dealings through fax/mail contact.
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