Debt

4 replies
58 views

Is it better to have an account go to a creditor so it doesn't show late payments anymore or to just pay the payment?

Anonymous

usually the creditor has the right to pursue payment. if the creditor "forgives" the debt (you would get a 1099-C) you could end up with taxable income. however, any payment would be more than the income taxes on the amount forgiven.

not paying or late paying the debt will be on your credit report for 7 to 10 years,

for your FICO credit score payment history makes up 35%

Anonymous_

Level 15

I have to wonder whether the original poster meant "go to a collection agency" instead of a creditor.

In that instance, it would be better to continue paying the creditor.

skipper-68_w

Level 2

Debt card is better than it goes straight to bank this showing monies will be paid with account right away

Debt

4 replies

Unlock tailored help options in your account

Get answers to all your tax questions

Unlock tailored help options in your account

Get answers to all your tax questions

Sign up

Login with SSO

Let's get you signed in

Login with SSO