Who is more willing to negotiate?

I understand that if you are behind on your CC payments the account goes to internal collections. After (I believe) 10 months or so it goes to an external Collection Company. Which one is better to negotiate in terms of debt settlement and which one will damage your credit the least? On your credit report the original CC will say " turned to a collection agency" Will there be a second ding from the collection agency? Thanks

People are of the opinion that its better to deal with the original creditor as long as possible. You can also negotiate a 'pay for delete' with the original creditor. However, some collection agencies too can do 'pay for delete' , hence it never hurts to ask.

A delinquent account would stay on the report for seven years and unless you successfully negotiate a 'pay for delete' it would remain as 'paid as agreed' or 'settled' no matter with whom you have settled.

The creditor would report the account as 'charged off' if they have turned it to collection and the account would appear against the collection agency's name.

Hope it helps.

I was thinking BK I have 4 Cards with 17K total. They are all current unfortunately the company I work for will cut hours, So this will reduce my income thus I have to prioritize my payments. Debt consolidation sounds reasonable, what is the precise point to negotiate since all my cards are current? Chase, FIA MC, Direct Merchant MC and CHASE.

Bank of America, Wells Fargo, Discover are the ones I am hearing that people are able to negotiate with..

Advanta, not at all. They are out of business and assigning their deals to junk debt buyer scumbags who like to sue. Good news is, they violate all types of laws so if you know your rights, they will end up owing you!!! by the end of the day!

Pay for delete with the original creditor is more of an urban legend and has fast become one with collectors as well.
With outside collection it is possible but not probable.

Brought to you by mythbusters

It is always better to deal directly with OC if you want to build your credit for a long time.But dealing with CA is really a bad dream.