It shows as a charge off that is settled and drastically affects their credit score for several years. Most lending insitutions don’t care about charge-offs that are settled after four years including the major home loan lenders fannie mae and freddie mac along with FHA as long as credit is re-established.
Ah....so what you are saying is that my husband and I are idiots for paying off our debt according to the standards that we originally agreed? lol