I wrote yesterday about my credit card being sent to a company to be charged off. After speaking tothese people and almost getting sick over it, we agreed on a 30% discount on my balance and 3 grand needed by the 21 of this month so it doesn't go to lawyers, and then payment arrangement for the following months to follow. Both of these sums are too large for me to be able to handle. Today I spoke with the cc company that sent my debt to the others and asked why it was sent. I explained to them that I received a call in January about the charge off and they told me that if I made a payment by the end of that month it wouldn't go into charge off. I made a 216$ payment and then set up 2 more for feb and march. Feb didn't go through and March isn't set up until the 25th, I asked them to look into this because I was misled or lied too. They told me they would call the company and tell them I am disputing it and it will take up to 60 days to get an answer. I told her that I needed to give the otther co. 3 grand on the 21 or they would send it off . She told me they won't because she is taking it out of their hands to dispute it. I calle dthe other agency and told them my conversation an dthey told me I still had to pay it that they couldn't take it back. Now I don't know what to do.

1. Most credit card collectors lie all the time on the phone to get any type of payment they can.

2. charge off?? That merely means they are going to write it off their taxes as a bad debt, does not effect or change your status of owing the debt. If they were going to file a law suit for a judgement, that is something else.

3. Stop talking to these people on the phone, nothing they tell you will be binding and normally they will never remember or you will never talk to that same person again.

4. Don't pay any settlement agreement without it being in writing.

5. never agree or make any type of settlement unless you actually have the money to pay it.

If you send them the 3 thousand, they could still sue you if they wanted to and they can most certainly "charge it off" which is merely an accounting term.

What happens when a charge off occurs and I file taxes? Does that screw up my refund?

Normally nothing happens, I have never seen them send out 1099 on the charge offs, It normally does not effect you one way or another, often you never know when they do it, or don't know till you see it on your credit report.

What you don't want to happen is for them to sue you in court for a judgement.

That is what I am trying to avoid by paying these people the 3 grand(which I don't have)When I speak with them again on Monday I am going to see if I could negotiate something a bit lower.