Am I hurting myself by paying this credit card?

I have a charged-off CC account which is in collections. The collector has offered me a 50% settlement. Since I can%26#039;t pay that amount (I%26#039;m saving toward it right now), I pay a small payment every month to %26quot;hold%26quot; the settlement offer. The payment covers the finance charge (currently 30.2% APR) and a small amount of capital.

From what I%26#039;ve read here, maybe this is not so smart. What should I do?

Am I hurting myself by paying this credit card?payday loan

pay off the bill using a low rate cc.

then make sure you pay the cc off before its rate goes up.

Since there is no way your savings is going to pay you the 30% you are getting charged, its not going to help you to save that amount in hopes of getting enough to pay it off.

If you don%26#039;t have another cc you can put it on, beg or borrow the money to take the 50% offer.

Use this to realize that cc debt is almost as bad as having a Soprano break your kneecaps, but its legal.

Am I hurting myself by paying this credit card?

loan

It sounds like you are already in a tight spot. Not paying would make it worse. But the interest rate of 30.2 is terrible! Your best bet is to get someone (family, friend, etc) to loan you the amount you owe and pay it off. Then make payments to them at a much lower rate of interest. If you can%26#039;t do that, keep going as you are. Stopping the payments will only make things worse.

Whatever you do, make sure you get the 50% settlement IN WRITING!!! Nothing worse than thinking you paid it off in settlement only to find out that they have now decided they want it all.|||http://articles.moneycentral.msn.com/Ban... this is a good place to do your research.