What Stays on My Credit Report After I Settle a Debt? | Q&A With Credit Expert Melinda Carrera

Ever wonder what your credit report looks like after you finally settle a debt? Will it haunt you forever like a financial ghost, or can you eventually move on? On a recent episode of The Debt Hotline, credit educator Melinda Carrera of Credit Street Financial joined Team Solo to break down the facts. With firsthand experience repairing her own credit and now helping thousands via TikTok, Mel shared the practical, and sometimes surprising, truths about credit reports, settlements, and what actually sticks around. Here's what we learned.

Settled debts stay on your credit, but they don't have to stay forever

When you settle a debt, the account usually stays on your credit report. It’s typically marked as "Settled," "Paid for less than full balance," or something equally unflattering. And while that’s better than an open collection, it's not ideal. Mel explains that once a debt is settled, you can often request that it be removed by contacting the credit bureaus directly.

She explains that many people don’t realize how much power they have in that process. Whether you're using online forms or calling the bureaus by phone, removal is possible, especially if there’s no remaining balance attached and if you’re actively working to make things better. Mel also emphasized that what you don’t know can be used against you, so the more informed and vocal you are, the more leverage you have.

Debt settlement may drop your score, but less than ignoring the debt

Here's the deal: settling a debt can ding your score. How much? That depends. Some folks might see a dip of 10–50 points, while others might lose up to 100 depending on how "thin" their credit file is. If a settled account is your only installment loan, for instance, your score might take a bigger hit than if you have a more diverse credit mix.

Still, Mel and Team Solo agree: it’s better to settle than leave the debt hanging. A settled account looks way better than one that's still open with a balance, and it shows you're taking responsibility.

Be your own advocate, especially when errors show up

Credit reports are messy. According to Mel, over 70% contain some kind of error. That could mean incorrect late payments, duplicate debts, or old addresses dragging down your stability score. If you see something suspicious, like the same debt showing up twice, you need to contact each bureau (Experian, TransUnion, Equifax) and initiate a dispute. Sometimes they'll ask for supporting documents, but often, simply pointing out the issue is enough to trigger a fix.

If you’ve settled a debt and it’s still showing up as open, dispute it immediately. And yes, you can request removal of settled debts if no balance remains.

You can also advocate for yourself with lenders and collectors if there’s a good reason you fell behind in the first place. Life happens, maybe you were sick, going through a divorce, laid off, or managing an injury or disability. While there is no guarantee, Hannah from Team Solo emphasized that if you can explain your situation honestly and clearly, banks and collectors may be open to working with you. This could mean restructuring your payment plan, stopping additional interest from accruing, or helping you settle for a manageable amount.

As always, the key is to communicate early and clearly. Don’t wait for a lawsuit or credit score damage before speaking up. Be proactive, be honest, and use your voice to protect your financial future.

Judgments and public records hurt your credit the most

If your settlement involved a judgment, like a court-stamped agreement, it will likely show up as a public record. Judgments can stay on your credit report and drag down your score significantly, but even those can be disputed and removed in some cases.

Mel recommends consistently following up with the bureaus and using your right to request validation of those records. Solo’s team adds that while judgments carry more weight, they’re still better than unpaid lawsuits or open collections. If you’ve reached a settlement with the creditor, it’s worth having that documentation filed in the court record to prevent confusion later.

How long do settled debts stay on your credit?

The seven-year rule is real. Most settled debts stick around for seven years from the date they were closed, not from when the debt began. So if your account was closed in 2020, expect it to fall off in 2027 unless you successfully dispute it sooner.

Don’t want to wait that long? Then be proactive: once the debt is paid and closed, ask the bureaus to remove it, especially if you settled in good faith.

How to rebuild your credit report after settling your debts

If you’ve recently settled debts, your next move should be pulling your credit report and cleaning it up. Mel suggests removing old addresses and outdated employers, checking for duplicate accounts, and using modern credit-building apps.

It’s 2025, there are dozens of apps that can help you rebuild without needing a traditional bank or expensive secured card. Even $5/month self-reporting tools can help fill in credit mix gaps and slowly raise your score. Just make sure the new accounts actually report to all three bureaus.

You can advocate for yourself and rebuild your credit

Mel's story is a great example of how quickly things can change when you advocate for yourself. After her car was repossessed, her credit dropped into the low 500s. But instead of giving up, she negotiated her debt, got thousands in fees removed, and pushed to get the account taken off her credit report. Within a few months, she qualified for a new car, later refinanced for a better rate, and eventually built a career helping others do the same.

Your story might look different, but the principle is the same: you have more power than you think. Whether it’s disputing errors, settling old debt, or just making that first phone call, small proactive steps can lead to major financial relief.

To learn more about rebuilding your credit, advocating for yourself, and staying out of debt trouble, check out Mel’s resources at Credit Street Financial. She’s living proof that a fresh start is possible, and that credit setbacks don’t have to define your future.

Transcript

Hannah (00:36):

Hello everybody and welcome to the Debt Hotline. We're really excited to host a really awesome special expert guest, Melinda Carrera with Credit Street Financial. Melinda has a lot of experience in helping people improve their credit and learn more about credit. She has a really successful TikTok account where she teaches people about credit and what they can do to improve their credit, build their credit and manage debt in general, and we're really excited to have her on today. Our topic for the day is what stays on my credit report after I settle a debt. So in a minute we're going to jump into that question, but

before we did that, I just wanted to take a moment to introduce myself. My name is Hannah Locklear. I'm a part of Team Solo. We help people respond to debt collection lawsuits and resolve their debt through settlement. And Melinda, I wanted to give you a minute to introduce yourself. Tell us a little bit about what you do and let's give you some time to tell us about you.

Mel (01:36):

Okay, so my name is Mel. I've been in the credit space for about going on six years now. I really took off during COVID. I feel like everyone just wanted their credit fixed and from there everybody was just talking about their results because everybody was on social media. So that's kind of how it took off. I once had terrible credit and it was just a turning point where it took me getting my car repossessed for me to sit down, learn how to fix my credit, and the person who actually taught me was in a transition with his business and he was actually becoming an educator. And so I learned how to fix credit from that. And now I am actually an educator, so I just pretty much teach people how to fix their own credit using my platform because it is something that can hold you back.

It is something that could really hinder your chances of getting an apartment, a house, a car. It really can affect you even sometimes getting a job. So it's just so important to have your credit in a good standing and a lot of times people just don't understand credit. So I feel like it's my job to tell people about credit and just all the loopholes there are there so many loopholes and there's so many laws that you have that people just don't know about. So I use my platform mostly on TikTok to let people know that you do not have to be in that forever bad credit situation. Sometimes it could feel daunting, it could feel like you're drowning and it's not something that has to be looked like that because I used to think that as well.

Hannah (03:14):

Mel, you mentioned a little bit about how you had your own experience having to rebuild your credit and I wanted to dig a little bit deeper. Can you tell us a little bit more about what got you in that position and exactly maybe if you feel comfortable even sharing numbers, how much your credit had dropped, where you were at, and then how you were able to rebuild it and how long it took. Could you tell us a little bit more in detail your story?

Mel (03:39):

Absolutely. So it really started, I would say it was the beginning of 20. Okay, so 2018 New Year's Day. It was December 31st, 2018. I remember my car got repossessed, so I went into 2019 that way I went into 2019, it's a new year, everybody has these goals and I went into the new year and not having a car, my credit is just terrible. I'm in this apartment that I do not, and I had to make a change. Contacted a friend that I knew that was doing credit repair and at that time he was actually like, I'm not doing it anymore. I'm teaching credit repair now, but since I don't have any students, I'd love for you to be my Guinea pig. So it literally worked out. I actually fell in love with it because I have a really long background of finance. I used to work in major banks for 10 years prior to that.

So even though I worked at large institutions, I still didn't have the proper knowledge on how to, I didn't really have the knowledge of credit, I didn't know how it worked. I didn't understand the loopholes. And so once I got with him, I just fell in love with it. I fell in love with, wow, I have this right. I can say that it was something that was already paid. So if it's paid, it doesn't necessarily have to be on my credit, but it's affecting my credit and this repossession that's on my credit, well, I don't have to pay. It was like 14,000 that I said I owed. I don't have to pay this 14,000, 6,000 of this is fees, so let's negotiate this debt and then get this off my credit. So now that I can move forward with my life. So it's just a lot of

negotiating that I didn't know that I had the power to do and that's really what got me into that.

But my numbers were like, I don't have the exact number, but it was for sure in the low five hundreds, that's how low it got. And what I tried to do was try to get another car, but I couldn't get another car with that. It was crazy. I was getting charged. I think they wanted 700 for a Honda Civic and it was like, I'm not paying that. I'm not going to do that. I'd rather just not have a car and I'll just work on my credit. And so the amount of money that I'm able to save, having good credit, the amount of opportunities I have, being able to have good credit, it's just a whole different world. It didn't take me as long as people say, A lot of people say it takes years and years. It doesn't necessarily take years and years. It could take one conversation sometimes in 30 days to update.

It could take you going on an app. It's 2025 now. They have credit building apps, so there's certain apps you can use right now that will build your credit. So depending on where your credit is at, if you're somebody who has bad credit and it's been holding you back, it can, I would say on an average about three to four months if you were to actively work on it. But sometimes it's faster, sometimes it's a little bit slower, but for you to be able to get a new car, whatever it is, I would say about three to four months.

Hannah (06:45):

It sounds like there were a lot of things that you did to help your situation, but one of those big things was that you negotiated the debt down to where you could actually afford to make the payments and then you got back on track and then from there you were able to rebuild your credit. Is that right?

Mel (07:01):

Correct. And I did, when I got my new car, my interest rate was pretty high, but I was still working on my credit. So shortly after did a refinance with a good bank and sometimes it's like that if you really need a car, you might be paying a high amount, but I do not recommend paying a high interest rate for too long because that eats up your money that you can have available to yourself or your family.

Hannah (07:26):

Yeah, so what was it like negotiating the debt? Because I think you said that they came after you for $6,000, is that right?

Mel (07:33):

Yeah, it was in fees and it's just really telling them like, Hey, I will pay this to get this to be done with it. And a lot of times they will work with you, but a lot of people don't know. So what you don't know is going to be used against you. So if you're not making the call, then you're not going to be able to get any sort of deduction. So you have to negotiate, you have to have your voice when it comes to credit, finances, all of that, you have to use your voice. And if you really are wanting to have that off your credit report, once it's paid off, you can ask for it to be removed from your credit report. The power that you have over your credit report, a lot of people don't even realize it's unbelievable. You have a lot of say so over your credit report.

Hannah (08:22):

And I think that's a key point that we try to emphasize at Solo too, is if you're facing debt struggles and you feel overwhelmed by it, you're drowning in debt, you have options. But the key is to be proactive and assertive and communicate. And it sounds like in your situation, Mel, that's exactly what you did. They were coming after you for a debt, they repossessed your car and then you proactively reached out and said, Hey, this is what I can afford. And you took those steps to initiate negotiate, and then you're able to rebuild from there. So I think that's a really important lesson to take away is if you're struggling with debt, you don't have to stay struggling. If you are proactive and communicate clearly, there are options and there are ways out. So

Mel (09:09):

Most times they want to work with you. It is very rare that it's just a hard no. Most times if you're really trying to get out of a situation or if you're trying to make things better, they will work with you. But a lot of people don't make that first step to call because they just think like, oh, this is it. I owe $16,000. Well, you have to look. 6,000 of that is fees, so 10,000 you owe.

Hannah (09:36):

Yeah. Well, I love that story and thank you so much for sharing. I think it's really important to hear real life stories because it just makes it feel more relatable and yeah, I think it's a reminder that you don't have to stay in those hard situations. You can't get out if you are proactive. I wanted to ask you the topic of today's q and a, which is what will stay on your credit report after you have settled the debt. Do you have any advice or any tips or any information about what actually stays on your credit when you settle your debt? It sounds like you've been through it.

Mel (10:09):

Yeah, so typically if you settle the debt, the account itself most times does stay on. It will either say settled pay for lesser, paid for a lesser amount, something in that sort paid for less than full balance or something in those terms. If there's late payments, those may be recorded, but typically it will have the account and the status always. So either settled, paid for or paid for less. So when it's closed out like that, you could then call the bureaus and say that you want this off your credit report because when you have something on your credit report and it shows that it was settled or was paid for less, then it's not necessarily attractive on your credit report. So the whole thing is to really make your credit report attractive to lenders and creditors. A lender and a creditor is not going to like to see something was settled because it's like, hmm, why?

If you don't have to want that on your credit report, then I highly suggest that you contact the credit bureaus and see if they're able to get it off. A lot of times they will work with you with getting it off, and most times you can even do it online, you could do it over the phone. It's not necessarily this long drawn out process, especially if there's no balance attached to it. So really just having and using your voice can change a lot when it comes to your credit report, but typically what stays on is going to be the account itself and then the status. So paid, settled. Now if it just says paid, then that's fine.

Hannah (11:38):

That'll probably be beneficial to your score, right?

Mel (11:41):

Correct. Unless there's late payments recorded, sometimes that gets reported on there. Sometimes the payments don't. It just all depends on how they submit it. But if the lates are on there, then you definitely want to try to get that off.

Hannah (11:55):

And if it's a settled debt, do you know about how many points it might affect your credit score?

Mel (12:03):

Everybody's different. So if it's settled and if let's say it's an installment, okay, so your credit report, it consists of five different categories and one of the categories is credit mix. So you have to have revolving and installment on your credit report. So you don't want to just show that you have only credit cards, you don't want to just show you only have loans. So installment is anything with an end date revolving is anything that keeps on going. So that's going to be a credit card or a credit line. So if for whatever reason, let's say the account that closes an installment and you have no other personal loans or auto loans or student loans on your credit report, then you're going to lose points because of that. But if you have other things that can suffice for that, then you'll be fine. So it all depends on the person's credit report because some people do, they'll be surprised their score drops when they pay off their auto loan and that's because they don't have any other installment, anything else with an end date. So it all depends on your credit report, but again, it's 2025, so you can get on an app and get something that will report and it's like $5 a month just to hit that bucket.

Hannah (13:10):

That'll tell you what your current score is. Is that what you're saying?

Mel (13:13):

Well, it will tell you, let's say if your score drops because something's paid off or something's settled, sometimes you lose points because you're missing that bucket now. But if that's the case, then you can go ahead and just get a self-reporting app that can kind of carry that gap right there. But everybody's report is different, so it's kind of hard to say how many points it'll draw, but if you don't have anything else on your credit report and that closes out, it can drop drastically. It could drop anywhere from 10 to 50 sometimes, depending on how lengthy your credit is, sometimes even a hundred points.

Hannah (13:55):

Gotcha. Okay. Well it sounds like there are a lot of factors that play into your credit score. And so yes, a debt settlement, since your debt was forgiven, it will probably for the most part have a negative effect on your credit score. But in general, and correct me if I'm wrong, Mel, but in general, if you settle your debt, it's going to be a better situation for your score than if you just continue to not pay anything at all.

Mel (14:20):

Absolutely. Absolutely. Having something settled on your credit report or even paid for a lesser amount is way better than just leaving it on your credit report and having an open balance on there.

Hannah (14:33):

Okay, perfect. And then once you do have a debt settlement on your credit report, about how long will it remain there before it drops off?

Mel (14:41):

So if you actually have it and you don't do anything, it typically is seven years from the close date is when it will drop off. So if it closed in 20 20, 20 27 is when it's going to drop off.

Hannah (14:53):

Gotcha. Okay, awesome. Well, let's go ahead and jump into some questions. We're going to start with a question from Sartorial Solutions, and I'll just read it out loud. It says, is there a way to get credit card companies to stop charging new interest on a credit card that they closed? The card would be paid off by now. I don't mind paying the base debt.

Mel (15:13):

You would have to ask them, but usually even if the card is closed and they have not, if there's no new transactions, they shouldn't be charging you interest. That's different. I've never heard of getting interest on something that's closed. Maybe if it's just closed, maybe it's still coming in, but if it's something that's been closed and it's been months now and they're still charging you interest, you should not be getting charged any interest. If there are not any new transactions, you only get charged interest on the new purchases of that balance, if that makes sense. So I would definitely call them.

Hannah (15:48):

I would also add to your answer, Mel, and just say that that's kind of how banks are designed. That's how banks make money often is by charging interest. That's why it's really important to stay on top of your balance to avoid accruing interest and then having to pay more than you originally borrowed. So if you've gotten to a point where you got so behind on your payments that now you're just racking up interest, if you can prove to the bank that you have a reason to have fallen behind on your payments, maybe you had some sort of life circumstance, maybe you got sick, maybe you were going through a divorce, maybe you had an injury or lost your job for whatever reason, there are options you can discuss with the bank and tell them what's happening, why you fell behind on your payments, and they might be able to help you set up a new payment plan to where you're also paying down on the debt, even if you are still paying a little bit towards the interest. But I think, again, like we talked about before, the key is to communicate and be proactive. Don't wait for them to come and collect the debt and then that's credit score. Don't wait for them to sue you. You can be proactive and bite the bullet and try to find a solution now before it gets to a legal situation.

Mel (17:03):

Absolutely. Definitely use your voice and see if you can negotiate.

Hannah (17:07):

Yeah, definitely. Okay, the next question is from Shirley Stargazer, it says, I'm being sued by a debt buyer. What percentage of the debt should I negotiate?

Mel (17:18):

I think that would be more of a you question.

Hannah (17:20):

I think so, yeah. So Shirley, that's a great question. It's a question we get a lot here at Solo and the answer is pretty simple. Debt buyers usually purchase debts for a discounted rate from original creditors, so usually they will pay pennies on the dollar to inherit, not inherit, but have the ownership of the debt transferred over to them so that then they will have the legal right to collect it. A study done several years ago said that the average price that debt buyers pay for such debts is 4 cents per dollar. So literally that means they pay 4% of whatever the debt amount is. So they're paying a few bucks. If you owe a hundred bucks, they're paying very, very little to take ownership of this debt and then come after you for it. So while if it's gotten to the point where a debt buyer has purchased your debt, it might be kind of tricky to negotiate with them because they have set limits that they determine they have predetermined before they even call you about the debt.

They will have a limit that says that they can't go past 50% to settle or X amount, but just know that you have leverage when you're working with the debt buyer because they probably purchased the debt for very little. So know that even if you were to settle for 50% for example, they're still probably going to make a profit. You're going to be able to settle for less than you originally owed, and it's kind of like a win-win situation. And it also depends on the debt buyer, so some major debt buyers may be willing to settle for even less. There's a lot of factors that play into it, but to give you kind of a generalized answer, and also as a disclaimer before I give this answer, I'm not an attorney and this is not legal advice, this is just information that I can provide based on my experiences with talking with lawyers and people who negotiate debt for a living.

I would say typically if you start with somewhere between 40 to 60%, you're going to have a really good chance at settling for about that much. Again, there's a lot of factors that play into it. If they know that you actually have the funds to pay it off, they might not settle for as little as 40%, but if you start a little bit lower, it'll give you some room to grow and continue to negotiate and maybe still end up saving quite a bit once you, you've reached that final agreement. So hopefully that answers your question. Shirley from Hiram in Texas, it says, can a debt collector report your debt twice on your credit report? They should not

Mel (19:54):

Twice. Same debt? No, that's an error. You got to get that corrected asap.

Hannah (20:02):

Do you have any advice on how they could correct that?

Mel (20:05):

So if it is reporting to all three bureaus, you're going to contact all three bureaus and they'll be able to see it. They'll be able to see, oh wow, it is being reported twice and they should be able to do it immediately. I don't see why they wouldn't do it immediately, even if they do it immediately. Sometimes it takes 30 days to update or they may tell you that you need to send in a dispute, but they'll give you the actual verbiage. They may need your signature and your ID and a copy of your social. So it all depends. Some people, I don't know what it is, but some people have to send in extra documentation, some people don't. You can just do it over the phone, but I guess it's whatever their system is telling them that they need to do. But you have to contact each bureau that's reporting.

So sometimes that debt, I have seen it before, it's a double, but let's say it's only reporting on Experian, you have the debt on all three, and then there's another one that's reporting on Experian. So just make sure you contact the ones that it's reporting. So typically it's one or two, but I've never seen a double. Exactly. One account is reported and then on all three bureaus and then another account exactly the same is reported on all three bureaus, same account number, same balance, same everything. That is an actual error, and errors do happen sometimes.

Hannah (21:20):

Perfect. Yeah, so short answer to that question, no, they can't report the same debt twice. Love it. Next The question is from Mina. In California it says, I was sued by cavalry and after they failed to appear on two separate court dates, the judge dismissed the case. How do I work to remove this from my credit report? Or will they stop reporting it to the credit bureaus?

Mel (21:43):

They will stop reporting it after a certain amount of time. It typically takes seven years from the close date. I don't recommend waiting that long, but if it's closed and it's already settled, I would contact the bureaus and have disputed with them. You can even do it online. I find more success doing it by letter or phone, but you can try it online at the very least. And there's an option online that says already settled. When you're selecting the options, you're going to log onto all three bureaus and you're going to select that option. If you do it online, if you're doing it by letter, you're going to pretty much write that verbiage. And if you're doing it over the phone, you're going to say the same thing. So yeah, just let them know that it's already been settled.

Hannah (22:24):

Perfect. And what kind of documentation might they have to submit in order to dispute that? Would they need to submit the court documents that prove that the case was dismissed?

Mel (22:35):

Typically not. If they ask for it, you can, but typically you don't. You can send it to be proactive, but most times they do not, especially if it's something that was settled. Now, if there's a balance still open, then yes, you have to send that documentation then that's a conflict. You're saying it's settled, but the report is saying it's open to have that proof, but if it's showing that it's closed, then you don't have to, but if you have the documents, go ahead and send that with you. Send it with your dispute.

Hannah (23:07):

Yeah, I'm sure it wouldn't hurt, right?

Mel (23:09):

No, absolutely not. It wouldn't hurt.

Hannah (23:12):

Awesome. Okay. Next question is from BJ. In New Jersey, it says, my lawyer settled a debt for me and I'm happy about it. However, I do not know how it will appear on my credit report. In the future, what do I do now? I might have a few more settlements and don't want to injure my credit for years to come.

Mel (23:32):

It might show up on your credit. I'm going to just give you the hard truth. It may show up on your credit. I don't know how much it would drop your credit because it all depends on how lengthy your credit is, how heavy or how light your credit is, because some people, it may affect them just a little bit, but then if you don't have much on your credit report, one thing can really hurt your credit report. So it all depends on how thick or thin your file is. That's what we say. And it may is going to affect your credit. It could be something that's 10 points. It could be something that's 50, 60, 70, maybe even a hundred

points.

Hannah (24:11):

But it sounds like, again, we mentioned this earlier, typically settling is going to look better than

Mel (24:17):

Absolutely. Absolutely. Settling is going to always look better than it being open.

Hannah (24:24):

So congratulations to you for settling the debt. That's great news. Yeah. Let's see. Next question is from David in Florida. He says, how does a stipulated judgment impact you and your credit score? Is it worthwhile to go into or is it best to negotiate not entering into one? So just to give a little context on what a stipulated judgment means. If you've been sued for debt, let's say a debt collector sued you and you negotiate with them after the lawsuit's been filed and you come to an agreement that you will pay a certain amount and you'll settle for less, and they agree to accept that to settle in many states, they will have to file a document into the court called a stipulated judgment, which is basically where they outline the settlement agreement that you came to. And it's technically considered a judgment in the case, but a stipulated judgment is kind of another way to say your debt settlement agreement document.

And so yeah, again, the question is how does the stipulated judgment impact your credit score and is it worth going into a stipulated judgment or should you negotiate without entering one? Yeah, so I would take a stab at it. And again, this is not legal advice, this is just general information about debt and settling, but in most cases, it's really good to get documentation that you've come to an agreement to settle the debt. This will help you avoid issues in the future. Mel, do you have any information on if a debt collection judgment and would show up on your credit report? Do you know what kind of an impact it could have on your report?

Mel (26:04):

Yeah. Judgments because they show up as public records, they do impact your credit a lot. You can always be disputed though. I see judgments come off all the time. I see bankruptcies come off, so it can be disputed, but it is something that you would have to constantly work at. So you would have to, you're basically sending in a letter asking for validation. If they can't validate it, that's how you get it off. So it's not that it is a little bit different. You're basically hoping they don't send the validation, so that way you're hoping that they don't meet it in 30 days. So you want to just basically keep going at it so that way at some they missed the deadline and that's how you get it deleted.

Hannah (26:47):

But it sounds like the short answer, a judgment will have a negative impact on your credit score, but I would like to just reemphasize that it's probably in your best interest to get documentation that the debt was settled and make sure that it's filed with the court case. This will help you avoid issues in the future. So it's kind of like there are pros and cons to entering a stipulated judgment agreement. We've got a question from Julie. It says, cavalry keeps reporting on my credit report, even though I'm due to being disabled. I have a letter from them for proof of where they bought the debt, but blacked out. What can I do?

Mel (27:27):

So Calvary keeps reporting on my credit report, even though I'm uncollectible doing. Okay, so have you contacted the bureaus and sent your documentation to the bureaus because they're the ones that are reporting it. If Calvary, you guys have this understanding and they're telling you that you have to communicate this with the bureaus, so you're going to have to contact whoever's reporting it, which it may be all three. You're going to contact TransUnion, Experian, and Equifax if it's reporting on all three, and let them know the situation because they're just an agency that reports.

Hannah (28:02):

And I would also add to that even if they can't collect your debt, even if they can't bother you about it because maybe you don't have any income that they can legally collect, maybe they probably can't sue you if that's the situation. And even if they did sue you and won the case, there's a chance that they probably still couldn't get your money legally. The point I'm trying to make is if you are uncollectible because you're disabled and that's the only income that you have is social security income, I believe that they can still report it to your court. It can still appear on your credit, and if you do all the debt and it is valid, there's probably not much that you can do about it. But if it's incorrect, if the amount's incorrect, definitely follow Mel's advice and dispute it.

Mel (28:47):

Yeah, definitely send it to the credit bureaus. It doesn't hurt. But yes, exactly what Hannah said, because it's uncollectible and you have a letter stating that you're disabled, doesn't mean that they can't report. I want to be very straight about that, but it's still worth it to contact them. If you're worried about your credit, it does not hurt.

Hannah (29:09):

Awesome. Okay, we've got another question from Vicky Tolbert. It says, if I make a settlement, can I make payments on the settlement? I'll take this one if that's all right, Mel. Yes. The answer is you can make a settlement agreement to where you are on a payment plan. In some cases, it might be in your best interest to negotiate a lump sum payment, which is where you pay 50% all at once. But in many cases, it might be in your best interest to set up a payment plan to where you say, Hey, can you knock off maybe 20% of the debt and we'll come to an agreement that I'll pay $500 a month until that full amount is paid off? Yes, you can definitely do that. So yes, you can settle and get on a payment plan. You just have to probably, in many cases, you would have to prove that that's the ideal amount that you could afford to pay, and you might have to submit some financial information to the collector proving that that's how much you can afford, and then you can enter into that payment agreement. But that's actually a pretty good deal if you can get on a payment like an installment plan and a payment plan with a collector. It's just a great way to get back on track and eventually rebuild your credit.

Okay. This question is from tm. It says, Halstead Financial has five accounts and is offering me 20% discount. What is your experience with them? I'm hoping to negotiate before a lawsuit is filed. Okay. So we do have a blog post on solo suit.com specifically about Halstead financial solo suit.com/post/beat Halstead Financial Services. So Halstead Financial is a third party debt collector for a debt collection agency. Halstead actually has really good reviews, meaning they are willing to work with you to get an agreement, and it sounds like they've already agreed to accept a 20% discount on your debt, which is actually in some cases, a really good deal. So congrats to that. I'm not saying that it's not possible to get a better deal, but I think the key is to just be really open when you communicate with them. Tell them your situation. If you feel like 20% isn't really doable, maybe see if they could go a little lower. Submit your financial information to them to show them what position you're in financially and what you can actually realistically afford to pay them. But yeah, I think the key is to just really be open about your situation and tm. Again, you can go read our blog posts that I shared. It'll give you more tips and tricks on how to negotiate with Halstead Financial specifically and who you would need to contact in order to start that negotiation process. Do you have any thoughts on that question, Mel?

Mel (32:01):

No, I think you covered all of it. I actually am shocked to hear that they're good. They're good because most agencies are rated bad, so that's great.

Hannah (32:12):

Yeah, I'm looking on our blog post right now. It says that Halstead Financial has a thousand Google reviews and they have a 4.9 average star rating.

Mel (32:21):

That's great.

Hannah (32:22):

Yeah. And then their Better Business Bureau reviews are also a 4.43 out of five star. So they will work with you, but it may take some work on your end to negotiate. And again, you'll have to be super duper honest and upfront about your situation. You should be able to at least, it sounds like you've already agreed to settle for 80% of the debt. Maybe you could do even more though. Thank you so much, Mel, for joining us. You're very welcome. Yeah, we really appreciate you sharing your expertise. Do you have any last words for advice on what to do to get a debt settlement removed from your credit report or how to build your credit in general? Any other last words or advice?

Mel (33:06):

So to settle your debt, I would highly suggest basically just getting on the phone, getting on the phone and using your voice and telling them your honest and true situation. Like, Hey, this is what I can pay and see what they are willing to do. If for whatever reason you need help, if you do get a summons and that debt is not settled and they happen to take further action, then contact SoloSuit so they can help you write that summons and then you can settle. You have another opportunity to settle that debt. And then when it comes to building your credit backup, really you want to start with just pulling a credit report and looking at it. A lot of times there's addresses, phone numbers, employers, stuff that really does not belong on your credit report. 70% of credit reports have errors. So there's stuff on there where you might have good credit, but people are still getting declined, but they have a bunch of personal information, so they got a bunch of addresses, phone numbers, employers, that hurts your stability factor.

That's easy to clean up if you're someone who needs to build credit they have. You can literally go to your app store and put in the word credit. And there's so many credit building apps. You don't a traditional banking route like putting money on a secured card and trying to build credit that way you can get an app and pay like $8 a month. Some of them are free. There's so many resources now to get credit. So really it starts with pulling a credit report and seeing exactly what is on your credit report. Anything that says collection, anything that says derogatory, anything that says late on there, you already know that that needs to be corrected, modified, settled, disputed, however you want to attack it, that's what needs to happen to those accounts.

Hannah (34:51):

Yes, head on over to solosuit.com. If you've been sued by a debt collector or a bank, you can use SoloSuit to respond to the lawsuit, which will block a default judgment. That's going to be your first step if you're dealing with a lawsuit. But you can also use our tool called SoloSettle to negotiate with creditors and debt collectors and settle your debt for less, save money and get back on track to where you can rebuild your credit and achieve financial freedom. If you guys have any questions, you can also contact us at support@solosuit.com. Mel, where can people contact you?

Mel (35:27):

You can contact me on my website, street financial.net. If you have any questions, I have a submission box, and there's also a chat. The chat just goes to my submission. If for whatever reason, I'm not on the actual website, but you can always ask a question there if you have any questions, and I typically respond within 24 hours.

Hannah (35:47):

Awesome. And just know that we're rooting for you at Solo. We want to help you find the Be Debt Resolution option possible. So please contact us. Head over to solosuit.com to learn more. Thanks again, Mel, for joining. And with that, we're going to sign off.

Disclaimer: The information presented in this podcast is intended strictly for general informational purposes and should not be construed as legal, financial, or investment advice. Solo and its hosts are not licensed attorneys, financial advisors, or other certified professionals. While select guests may hold active professional licenses, their contributions are purely for educational thematic discussion. They're not delivering professional or personalized advice. Solo is not a law firm, does not offer legal representation and must not be relied upon as a substitute for professional legal counsel. It is also not engaged in debt, settlement, credit repair, or financial counseling services. Solo provides self-directed software tools designed to support users in navigating their own legal and financial situations. Participation in this podcast does not establish an attorney-client relationship. Listeners are encouraged to consult with attorneys or licensed professionals for guidance specific to their circumstances. The opinions expressed by podcast participants are their own and do not necessarily reflect the views or official positions of SoloSuit Inc. Doing business as Solo or any affiliated organizations.

How to Answer a Summons for debt collection in all 50 states

Here's a list of guides on how to respond to a debt collection lawsuit in each state:

The Ultimate 50 State Guide

• Alabama
• Alaska
• Arizona
• Arkansas
• California
• Colorado
• Connecticut
• Delaware
• Florida
• Georgia
• Hawaii
• Idaho
• Illinois
• Indiana
• Iowa
• Kansas
• Kentucky
• Louisiana
• Maine
• Maryland
• Massachusetts
• Michigan
• Minnesota
• Mississippi
• Missouri
• Montana
• Nebraska
• Nevada
• New Hampshire
• New Jersey
• New Mexico
• New York
• North Carolina
• North Dakota
• Ohio
• Oklahoma
• Oregon
• Pennsylvania
• Rhode Island
• South Carolina
• South Dakota
• Tennessee
• Texas
• Utah
• Vermont; Vermont (Small Claims court)
• Virginia
• Washington
• West Virginia
• Wisconsin
• Wyoming

Guides on how to resolve debt with every debt collector

Are you being sued by a debt collector? We’re making guides on how to resolve debt with each one.

• 11 Charter Communications
• AAA Collections
• Aargon Agency Inc
• Absolute Resolutions Investments LLC
• ACEI Collections
• Account Services
• Accredited Collection Services
• Accredited Collection Services
• Advanced Recovery Systems
• AES NCT
• AFNI Collections
• Alco Capital Group LLC
• Aldous and Associates
• Alliance Collections
• Alliance One
• Alliant Capital Management
• Alpha Recovery Corp
• Alltran Financial
• Alltran Health
• Alorica Inc.
• Amcol Clmbia in Court
• American Coradius International
• American Profit Recovery
• American Recovery Service
• Americollect
• AmSher Collection Services
• Apelles LLC
• AR Resources
• ARC Collections
• ARM Solutions
• Arrow Financial Services
• ARS National Services
• ARSC Debt Collectors
• ARS National Services
• ARstrat
• AscensionPoint Recovery Services
• Asset Acceptance LLC
• Asset Recovery Solutions
• Associated Credit Services
• Atlantic Credit and Finance
• Atradius Collections
• Automated Collection Services, Inc.
• Autovest LLC
• Avante USA
• Avantus
• AWA Collections
• Balekian Hayes
• Bay Area Receivables
• BCA Financial Services
• BC Services
• Benuck and Rainey
• Berlin-Wheeler
• Bluebonnet Financial LLC
• Bonneville Collections
• Bull City Financial
• Bureaus Investment Group
• Cach LLC
• Caine and Weiner
• Capio Partners
• Capital Accounts
• Capital Collections
• Capital Management Services
• CardWorks
• Carmel Financial/New Coast Direct
• Cavalry SPV I LLC
• CBCInnovis
• CBCS Collections
• CBE Group
• CBV Collections
• CCB Credit Services
• CCS Collections
• CCS Offices
• Central Mediation Services
• Central Portfolio Control
• Cerastes LLC
• Choice Recovery
• Choice Recovery Inc
• CKS Financial
• CKMS Financial
• Client Services
• CMRE Financial Services
• COAF
• Coast Professional
• Comenity Bank Debt Collection
• Commonwealth Financial
• ConServe Debt Collection
• Consumer Collection Management
• Contract Callers Inc
• Convergent Healthcare Recoveries
• Convergent Outsourcing
• Couch Conville & Blitt
• Covington Credit
• CRDT First
• Credco in Court
• Credence Resource Management
• Credit Bureau Systems
• Credit Control Corporation
• Credit Management Company
• Credit Management LP
• Credit Systems
• Credit Systems
• CSIEZPay
• CTC Debt Collector
• CVCS Debt Collection
• Cypress Financial Recoveries
• D&A Services
• Daniels, Norelli, Cecere & Tavel P.C.
• DCM Services
• Debt Recovery Solutions
• Delanor Kemper & Associates
• Department Stores National Bank
• Direct Recovery Associates
• Discover Collections
• Diversified Adjustment
• Diversified Consultants
• Diversified Recovery Bureau
• DNF Associates, LLC
• Dodeka LLC
• DRS Credit
• Dynamic Collectors
• Eagle Loan
• Eagle Accounts Group, Inc.
• Eastern Account System
• EduCap
• Ellington and Associates Collections
• Encore Capital Group
• Enerson Law
• Enerson Law LLC
• Enhanced Recovery Company
• EOS CCA
• ERC Collections
• ERSolutions
• Estate Information Services
• Equable Ascent Financial
• Everest Business Funding
• Executive Credit Management
• Faber and Brand
• Factual Data
• Falls Collection Service
• FBCS
• FCO Collections and Outsourcing
• FIA Card Services
• fin rec svc (Financial Recovery Services)
• First Federal Credit Credit Control
• First Financial Bank
• First Portfolio Ventures LLC
• First Progress
• FirstPoint Collection Resources
• Firstsource Advantage
• FMA Alliance
• FNB Omaha
• Forster & Garbus
• Franklin Collection Services
• Freedom Plus
• Freshview Solutions
• Frontline Asset
• Frost Arnett
• Fulton Friedman & Gullace LLP
• Galaxy International Purchasing, LLC
• GC Debt Collection
• GC Services
• General Revenue Corporation
• GLA Collections
• Glass Mountain Capital
• Glasser and Glasser
• Global Credit Collection Corp
• Global Trust Management
• GMAC Financing
• Golden 1 Credit Union
• Grant and Weber
• Grant Mercantile Agency
• Gulf Coast Collection Bureau
• Gurstel
• Halsted Financial Services
• Harris and Harris
• Harvard Collection
• Harvest Credit Management
• Helvey and Associates
• Hollis Cobb
• Holloway Moxley
• Hosto Buchan
• Howard Lee Schiff
• H&R Accounts
• HRRG
• Hudson & Keyse LLC?
• Hunter Warfield
• IC System
• Impact Receivables Management
• Innovative Recovery
• Integras Capital Recovery LLC
• Javitch Block
• JHPDE Finance 1 LLC
• JP Receivables Management Partners
• JPMCB card
• Kenneth Eisen and Associates
• KeyBank student loans
• Kinum
• Kirschenbaum, Phillips & Levy P.C.
• KLS Financial Services
• Kramer & Frank
• Lakeside Collection
• Lending Club
• Lincoln and Morgan Kabbage
• Linebarger Goggan Blair & Sampson LLP
• Lockhart Collection Agency
• LJ Ross Associates
• LTD Collections
• Malcolm S. Gerald and Associates
• Malen & Associates
• Mandarich Law Group
• Mannbracken
• Marcam Associates
• MARS Inc. Collections
• MBA Law
• MCA Management Company
• McCarthy, Burgess & Wolff
• Meade & Associates
• Medicredit
• Mercantile Adjustment Bureau
• Merchants Credit Association
• MGM Collections
• Michael J Adams PC
• Midland Funding LLC
• Mid-South Adjustment
• Monarch Recovery
• Monterey Financial
• Moss Law Firm
• Mountain Land Collections
• MRS Associates
• MRS BPO
• MSW Capital LLC
• Mullooly, Jeffrey, Rooney & Flynn
• Nathan and Nathan PC
• National Collegiate Trust
• National Credit Adjusters
• National Credit Care
• National Credit Systems
• National Enterprise Systems
• National Recovery Agency
• National Recovery Solutions
• Nationstar
• Nationwide Credit
• Nationwide Recovery Services
• Nationwide Recovery Systems
• NCEP LLC
• NCO Financial Systems Incorporated
• North American Recovery
• Northland Group
• Northstar Capital Acquisition
• Northstar Location Services
• NPAS
• NRC Collection Agency
• Oliver Adjustment Company
• Oliphant Financial, LLC
• Oportun
• P&B Capital Group
• PCB Collections Agency
• Palisades Collection LLC
• Pallida LLC
• Paragon Contracting Services
• Paragon Revenue Group
• Payday Loan Debt Collectors
• Pendrick Capital Partners
• Penn Credit
• Perdue Brandon
• Persolve LLC
• Phillips & Cohen Associates
• Phoenix Financial Services
• Pioneer Credit Recovery
• PMAB LLC
• PRA Group, Inc.
• Pressler, Felt & Warshaw LLP
• Prestige Services, Inc.
• Prince Parker and Associates
• ProCollect
• Professional Finance Company
• Progressive Management Systems
• Provest Law
• PYOD LLC
• Quaternary Collection Agency
• RAB Collection Agency
• Rash Curtis and Associates
• Radius Global SOL
• Radius Global Solutions
• Rawlings Company
• Razor Capital
• Real Time Resolutions
• Receivables Performance Management
• Regents and Associates
• Reliant Capital Solutions
• RentGrow
• Resurgent
• Resurgent Capital Services and LVNV Funding
• Revco Solutions
• Revenue Enterprises LLC
• Revenue Group
• RGS Financial, Inc.
• RMP LLC in Court
• RMP Services
• RS Clark and Associates
• RSIEH
• RSIEH
• RTR Financial Services
• Rubin & Rothman
• Salander Enterprises LLC
• Samara Portfolio Management
• SCA Collections
• Scott Parnell and Associates
• Second Round Collections
• Second Round Sub LLC
• Selip & Stylianou LLP
• Sequium Asset Solutions
• Sessoms and Rogers
• Sherman Acquisition
• Sherman Financial Group
• SIMM Associates
• Source Receivables Management
• Southern Management Systems
• Southwest Credit Group
• Spire Recovery Solutions
• SRS Company
• Stark Collection Agency
• State Collection Service
• Stenger and Stenger
• Stillman Law Office
• Summit Account Resolution
• Sunrise Credit Services
• Superlative RM Debt Collector
• Suttell and Hammer
• Synergetic Communication
• Synerprise Consulting
• The Law Office of Michael J Scott
• Trellis Company
• Troy Capital
• TRS Recovery Services
• TrueAccord
• Tulsa Teachers Credit Union
• UCB Collection
• UHG 1, LLC
• Unifin
• Unifin Debt Collector
• Unifund
• Universal Credit Services
• US Bank Collections
• USAA collections
• USCB America
• Valentine and Kebartas
• Valley Servicing
• Vance & Huffman LLC
• Van Ru Credit Corporation
• Velo Law Office
• Velocity Investments
• Viking Client Services
• Wakefield and Associates
• Waypoint Resource Group
• WCTCB
• Weinberg and Associates
• Weltman, Weinberg & Reis
• Westwood Funding
• Williams and Fudge
• Wilshire Consumer Credit
• Wolpoff & Abramson
• Worldwide Asset Purchasing
• www.AutomotiveCredit.com
• Zarzaur & Schwartz
• Zwicker & Associates

Resolve your debt with your creditor

Some creditors, banks, and lenders have an internal collections department. If they come after you for a debt, Solosuit can still help you respond and resolve the debt. Here’s a list of guides on how to resolve debt with different creditors.

• American Express; American Express – Debt Collection
• Bank of America
• Barclay
• Best Buy Credit Card
• Capital One
• Chase
• Credit One Bank
• Old Navy Credit Card
• PayPal Synchrony Card
• Regional Finance
• Retailers National Bank
• Reunion Student Loan Finance Corporation
• SYNCB/PPEXTR
• Synchrony Bank
• Synchrony Walmart Card
• Target National Bank
• Webbank
• Wells Fargo
• Can I Pay My Original Creditor Instead of a Debt Collection Agency?
• Can I Settle a Debt with the Original Creditor?

Settle your medical debt

Having a health challenge is stressful, but dealing medical debt on top of it is overwhelming. Here are some resources on how to manage medical debt.

• Am I Responsible for My Spouse's Medical Debt?
• Do I Need a Lawyer for Medical Bills?
• Do I Need a Lawyer to Fight Medical Bill Debt?
• Does Bankruptcy Clear Medical Debt?
• How Much Do Collection Agencies Pay for Medical Debt?
• How to Find Medical Debt Forgiveness Programs
• Is There a Statute of Limitations on Medical Bills?
• Medical Debt Statute of Limitations by State
• Summoned to Court for Medical Bills — What Do I Do?
• Summoned to Court for Medical Bills? What to Do Next

Guides on arbitration

If the thought of going to court stresses you out, you’re not alone. Many Americans who are sued for credit card debt utilize a Motion to Compel Arbitration to push their case out of court and into arbitration.

Below are some resources on how to use an arbitration clause to your advantage and win a debt lawsuit.

• How Arbitration Works
• How to Find an Arbitration Clause in Your Credit Agreement
• How to Make a Motion to Compel Arbitration
• How to Make a Motion to Compel Arbitration in Florida
• How to Make a Motion to Compel Arbitration Without an Attorney
• How Credit Card Arbitration Works
• Motion to Compel Arbitration in California
• Sample Motion to Compel Arbitration

Stop calls from debt collectors

Do you keep getting calls from an unknown number, only to realize that it’s a debt collector on the other line? If you’ve been called by any of the following numbers, chances are you have collectors coming after you, and we’ll tell you how to stop them.

• 1-800-390-7584
• 800-289-8004
• 800-955-6600
• 8009556600
• 877-366-0169
• 877-591-0747
• 800-278-2420
• 800-604-0064
• 800-846-6406
• 877-317-0948
• 888-899-4332
• 888-912-7925
• 202-367-9070
• 502-267-7522

Federal debt collection laws can protect you

Knowing your rights makes it easier to stand up for your rights. Below, we’ve compiled all our articles on federal debt collection laws that protect you from unfair practices.

• 15 USC 1692 Explained
• Does the Fair Credit Reporting Act Work in Florida?
• FDCPA Violations List
• How to File an FDCPA Complaint Against Your Debt Collector (Ultimate Guide)
• How to Make a Fair Debt Collection Practices Act Demand Letter
• How to Submit a Transunion Dispute
• How to Submit an Equifax Dispute
• How to Submit an Experian Dispute
• What Debt Collectors Cannot Do — FDCPA Explained
• What Does Account Information Disputed by Consumer Meets FCRA Requirements Mean?
• What does “meets FCRA requirements” mean?
• What does FCRA stand for?
• What is the Consumer Credit Protection Act