No. of Recommendations: 3
Is settlement better than bankruptcy? How do the two differ on a credit report? How does a hardship program display on a credit report?

As far as I know, settlement is not much better than bankruptcy. I believe your credit report will indicate that a settlement was made on the account. This basically indicates to other creditors that you were unable to satisfy your obligations and negotiated down.

I am not familiar with any of these things because I have not experienced any of them. I believe a hardship program is not displayed on your credit report at all. As far as the creditor is concerned, you are paying your entire obligation. What they are doing is working with you on the interest rate and/or minimum payment so that you can afford to pay them. It is in their best interest to go that route because then they get more of their money back.

I think you need to call your creditors and ask to speak to someone regarding their hardship programs. I am not sure if that is what it is really called or not but I am sure they will be able to assist you. Explain that you are getting behind due to the rates and high minimums but that you really have a desire to fulfill your obligation to pay the debt.

I sincerely hope you put the idea of BK and settlement out of your mind and work with your creditors to pay your entire debt.

Print the post  


UGC Disclosure Notice Regarding Credit Card Posts
Community board discussions about credit cards are not provided or commissioned by banks who may have advertising relationships with The Motley Fool. Responses have not been reviewed, approved or otherwise endorsed by the bank advertiser. It is not the bank advertiser's responsibility to ensure all posts and/or questions are answered.
TMF Credit Center
The Motley Fool Credit Center arms you with real tools and simple messages, that will help you in every credit situation.
When Life Gives You Lemons
We all have had hardships and made poor decisions. The important thing is how we respond and grow. Read the story of a Fool who started from nothing, and looks to gain everything.
Contact Us
Contact Customer Service and other Fool departments here.
Work for Fools?
Winner of the Washingtonian great places to work, and Glassdoor #1 Company to Work For 2015! Have access to all of TMF's online and email products for FREE, and be paid for your contributions to TMF! Click the link and start your Fool career.