Legal Question in Credit and Debt Law in Texas

Re: Credit Report

The debt may stay on your credit report for seven years from the date of last activity. The best bet is to negotiate for a lump sum payment settlement. Often creditors will take a reduction in the total amount due if they are getting a lump sum. If you can't do that, I would make as large payments as possible to reduce the interest and principal. If you negotiate a settlement with them you can also negotiate how it is reported on your credit report. If you reach an agreement, be sure that it is in writing. The creditor cannot force you to take out any kind of loan but as long as the debt is delinquent it will be reported as such. You might want to reconsider the home equity option. Mortgage interest rates are so low and credit card interest is so high, you could come out way ahead. That would be a way to pay the debt in full, cut off the high interest and it would be alot easier to pay off the debt at the low mortgage interest rate.