jeepman2
the following are opinions...

1) if you settle the debt, it will lower your credit score. It will show up as R7 or R9 depending on the arrangement you settle on.

2) If you have the settlement in writing with the creditor, why would they send it to collections?

3) 10% will work if you demonstrate that you're illiquid and aren't likely to be able to pay any more than that. Obviously the creditor wants to get something out of the deal and not have you declare bankruptcy.

The creditor will also watch to see if you're gaming them.

This credit item will go to R9 bad debt if you settle at 10%

I suggest you document your financial situation and then have it ready for when you speak to the creditor.

montyloree. Further to my last posting.The balance is $20K. In your opinion, or anyone else having experience with this type situation will the following happen. 1) hit on my credit score. 2) account be sent to collection once a settlement is reached.

Thank you in advance, Jeepman2

montyloree...No. I originally offered $20k and re-financed giving them $15K in Jan/07. The reason, I did not wish to get involved in a consumer proposal, or worse bankruptcy. We are self employed and you can appreciate bankruptcy is not an option.

Now I just want to move on. Do you think 10% will work? Jeepman2

jeepman2... did you get your settled agreements, so far, in writing with the creditor/collector?

Thank you, Average Joe. I paid the $15K a year ago. I have paid them on time. I will try the 10%. Thank you again. Any more comments Average Joe are appreciated.

If you had 35k in an unsecured debt with wells Fargo, I would have tried to settle the debt from the beginning instead of handing over the 15k.If you would have tried to settle from the start I can almost guarantee that the 15k you had would have been more then enough to settle the debt completely. The problem is now you have showed them you can raise 15k and they have it in their head you can raise more. I would try with a 10% settlement for starters and hope for the best. The problem now is you played your hand wrong from the start. Good Luck

I have $20k left of a $35K Wells Fargo unsecured line not on my credit bureau. The rate is 13%. Will they settle for 15%. I just paid them $15k and I have had the original loan since 2000. Thank you, Jeepman2