Got one settlement e mail offer this morning

[DYLAN150]

PNC bank offered a 60 month settlement with me. Payments over 60 months then it will be considered paid in full. It's a visa card account. I am only about 2-3 payments behind and I am sure they can do better than that. It's not a bad deal but will wait and see.

[DebtHater]

Several things to watch for before you commit to their settlement:

How much of the balance are you paying over the course of the 60 months?

Are they adjusting the interest?

Even though it may be considered "paid in full" see what they will be reporting to the credit bureaus. Chances are they will report "settled in full" or similar.

Will they be filing a 1099 with the IRS? If you settle for less than is owed the difference is likely taxable. Example, if the original balance is $10,000 and you settle for $6,000, you will own taxes on the remaining $4,000.

These 60-60 plans (60% of the balance over 60 months) are common offerings to those around 60 to 90 days past due. Two must do's if you decide to commit to one of these. Get the terms in writing prior to making any payment and no electronic access (auto withdrawals) to you bank accounts. If they tell you that they will send the terms after they receive the first payment, tell them to go fly a kite!