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Settling vs. Paying Full Balance

May 16th, 2008 at 12:54 am

I owe Sprint $250.47. I discontinued my services because I lost my job and didn't have a way to keep up the monthly payments. I received a notice in the mail today saying I could settle the account for $125.24, 50% of the balance. And they say they will consider the balance settled in full. I wonder does this mean they will notate my account on my credit report that it's paid in full?

I remember Dave Ramsey saying that he didn't think settling was good because you aren't owning up to the full amount you owe. While I understand that, isn't the goal to be debt free by any means necessary?

8 Responses to “Settling vs. Paying Full Balance”

  1. creditcardfree Says:

    I don't know how it reflects on your account, but it seems if they consider it in full...then it is and therefore won't show as deliquent on your credit report. If you have the money...pay it in full. If you don't...take the settlement. Keep a copy of the letter you recieved should it ever come back at you.

  2. debtfreeme Says:

    call and ask them what it means to them and how it would reflect on your credit score.

  3. merch Says:

    Your score has already been dinged by not paying. Settling and paying in full will have the same effect on your credit score.

    Morally, if you have the money, I believe you should pay in full.

  4. Amber Says:

    When I settled some accounts, some said paid in full some were noted settled. I would just pay it (the settlement amount). I also agree with debtfree, give them a call

  5. noppenbd Says:

    I think you should try to get something in writing that says the settlement will not affect your credit score. I am not sure that it has already affected your credit; if it hasn't gone to collections, I doubt that it has.

  6. Koppur Says:

    when i did settlement on some of my CCs, they all came up as settled on my credit report. not as bad as delinquent, but not as good as paid in full. call Spint and see if you can work out a monthly plan to pay your remaining balance. it will look better on your credit report to pay it all instead of settling.

  7. honeichild Says:

    I guess I just wanna settle because I figure i could use the remainder to pay another account. I will call them and ask how it will show up on my credit report.

  8. Amber Says:


    I say settle and get it in writing, good luck

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