Hi Ascend team, your videos have been super helpful! I have a question now: how soon does best egg sell the debt to the 3rd party, after the account is charged off (120 days)? And if I start a 6month settlement payment plan on or before that charged off date, will they still report the charged off information to credit bureaus? I lm hoping to make the settlement payment before it’s charged off, but what they offer is higher than I can afford. Thanks in advance!
Hmmm hard to say. Best Egg or any other lender charges off an account, the timeline for selling that debt to a third party can vary. Typically, creditors might wait anywhere from 90 to 180 days after the charge-off before selling the debt to a collection agency. This period can be influenced by their internal policies and the specifics of your account. Regarding a settlement payment plan: If you start a payment plan on or before the charge-off date, Best Egg will still report the account as charged off to the credit bureaus. Charge-offs are a formal acknowledgment by the lender that they have deemed the account uncollectible, and this status generally remains on your credit report for up to seven years from the date of the charge-off, regardless of any subsequent payment plans or settlements. It’s always a good idea to confirm with Best Egg directly how your account will be reported and to get any agreements in writing. If you need to discuss your options going forward feel free to call us at (833)272-3631 and one of our analysts can do a free consultation with you.
Let me go ahead and correct you here sir. Debt settlement is consolidating. What you doing is consolidating all your debts into one payment when you do that settlement. Only thing is that you're not getting a loan to pay off the debt, what is happening is the get settlement team is it going to negotiate with each of your creditors get your balances for each of your accounts reduced down to 50%. I worked in debt settlement and personally for me it's a better option because you're no longer paying interest you getting your balance is reduced so you no longer have to worry about dealing with the creditors directly. What bothers me is that people are so concerned about their credit when their utilization is so high they can't even use the credit. So in that situation why not just go with debt settlement. When you're getting a loan you're basically just moving trash from one side of the room to the next.
Thanks for the comment, Chris. There are at least 3 types of consolidation, and yes, debt settlement is a type of consolidation, and I believe it can be a good option for some folks.
I have about 50k in credit card debt with 650 FICO. Which credit cards are best for me? I need a recommendation for balance transfer cards. I have chase freedom, chase sapphire, chase ink, us bank platinum, discovery card, Amex card, Amazon card, bank of America card. All credit cards are around 20% APR. My credit score is 654. I am afraid to apply for anything for fear of dropping my score below 650. What would you recommend I do? Which cards require 650+ credit scores? 700+? Which balance transfer credit cards might be best in my position?
