Q. My friend says she's going to just stop paying her maxed-out credit card because she can't make the minimum payments and her bank told her it will just go against her credit history for seven years. Is this a good idea?

A. No. Your friend is making a big mistake.

A debt like that stays on her credit report for seven years after the credit card issuer or a debt collection agency decides that the debt is uncollectable.

They won't accept that kind of loss without a fight. The more she owes, the more relentless they'll be. If your friend refuses to deal with this, the credit card company or collection agency can even sue her.

During this time her credit score will take a serious plunge. She'll pay higher auto insurance rates, have difficulty renting an apartment and could even suffer when she applies for a job.

Prospective employers can and do check credit reports. A person who racked up credit card debt and walked away from it would be less likely to get a job than someone with better credit.

We suggest that she contact the National Foundation for Credit Counseling.

An NFCC member can negotiate a settlement that writes off a substantial amount of your friend's debt and establishes a realistic plan to repay the rest.