Net Worth over Credit Score

So yesterday,

much to Single Ma's dismay, I decided to take the collection company's offer and took their 'settlement in full' deal. I decided that my Net Worth and getting behind my debt is more important than 'fighting' with the collections company and my temporary credit score.

Yes, the settlement in full will likely negatively affect my credit for a few years to come but, a settlement in full is much better in my opinion than to have it drag on my credit score for a few months while I spend time and energy researching archaic pieces of the Fair Credit Reporting Act and trying to find a loophole out of it.

Honestly, I don't think the damage done will be that bad. When I first discovered the blip on my credit, I noticed that while my score had gone down about 40-60 points, the drop still left me within the 'good credit' zone as my scores ranged from 688 -710. However, I panicked, ran out and got a 0% credit card that wasn't used until this week (to pay off the $200 settlement balance) and this in turn took another 10 pt hit to my lowest score of 688 to 678 - or average.

So now I have average credit but, I'm guessing the settlement of the debt will raise my credit score further - although at a slower pace - and eventually I will be well back into the 700's (good-great) range. Especially when I correct some errors on my credit report about address, employer and even ending balances on accounts.

More important to me right now is raising my net worth as well as my cash flow which is currently pretty low. I don't plan on buying a house for another two years and I'll probably be married by then...which brings up a whole 'nother issue entirely.

I am trying to get engaged in the next 3 months or less and although it may seem small to some that $600 discount/income/whatever will definitely help me shop for a ring faster than sitting, worrying about the debt, and stressing in general over a piddly $1,600, blind-siding collection.

On top of an engagement ring I am planning a benchmark, surprise birthday party for a relative with little help from another relative (i.e., Dobson) - thus far. The birthday party will set me back at least $250 and most likely more as we are planning to pay for the tab.

Ultimately the decision to settle-in-full is one less worry for me. I'd bore you with my other over-stretched obligations (investment club) but I think I've ran long on this post already.

Thanks for reading!Enjoy your weekend.

Article/News bit of the Week:

This week's Article/News bit of the week falls more on the Article side as it's a pseudo-article/blogpost from 'Stanley Bing' and assumed name of a business writer for Fortune.

His article How green is My Valley talks about how Money ain't quite what it used to be. One blurb that stands out is talking about a new movie 3:10 to Yuma....

"One line in it got me thinking. A Pinkerton, played by the gracefully aging, well-chiseled Peter Fonda, has been hired to guard a payroll shipment destined to be the target of the ultra-smooth and charming bandit, Russell Crowe. Someone is extolling the toughness and tenacity of the Pinkerton, who has been gut-shot but is still walking around. 'That’s why they pay them $18 a day,' he says."

Of course this movie is based in the past - 19th century to be specific - but, man - who in America can live on $18 a day?

About 4 years ago - A friend of a friend who lived in NYC at the time - explained that simply eating or even existing in NYC costs about $15 a day - STANDARD. Assuming that price has gone up in the past 4 years - and being NYC I'm sure it has...I'm glad I don't make $18 a day - the BIG BUCKS a century ago.

One of my goals is to be a millionaire by 40 - but by that time, will a Million really even be impressive? It might just barely pay the bills.

Speaking of 1 Million dollars, an article that I'll dub 2nd place for this week comes from -almost ironically- New York City I just saw on CNN.com (yeah, I really need to find other websites to view).

"A New York woman is so angry at Apple Inc. for lopping $200 off the price of the iPhone that she's filed a lawsuit seeking $1 million in damages.

Dongmei Li of Queens, New York, claimed the company violated price discrimination laws when it slashed the price of the 8-gigabyte iPhone by a third, from $599 to $399, within two months of the gadget's June debut."

I was going to say something derogatory towards Ms. Li but, given the fact that I don't have $1 million dollars yet - instead I'll say 'good luck'.

And Apple Inc. - In no way by saying 'good luck' to Ms. Li do I mean 'good luck' in the aforementioned case above. I mean 'good luck' in a very general sense and by no means wish to inadvertently wish 'bad luck' on the wonderful company that created the Ipod which I in fact happen to own... due to the fact that my father fits into the 'early-adopter' category and it was Christmastime around the time you came out with your wonderful video Ipod - OK I kind of got off track there Apple Inc & Ms. Li.

Let me just end by saying: Good Luck to you both & May Justice prevail!