What happens if you have a valid settlement offer, you are making payments, and then you miss a payment?
Sometimes the company will work with you, but there is a chance you will be in breach of contract. Missing a payment means you invalidated the signed agreement between you and the creditor. The degree of pain and the ability to recover varies. Here is an example:
Courtesy of Household – HSBC Watch: I had a credit card from hsbc. The limit was $300. I was unemployed over the summer because I teach. Already miffed by the high interest rate , My bill kept rising, even though I had not used the card in a year. I made a settlement to pay off the nearly $1000, in 3 payments of $333 . I paid the first two on time the last on due July 22 , I sent $75 and a note explaining that I was unemployed and would send it off asap. They in turn sent it to collections and they kept my money and want $1000 again.