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Tips for settling with debt collection agency?

Date: Fri, 12/15/2006 - 09:17

Submitted by anjfra
on Fri, 12/15/2006 - 09:17

Posts: 4 Credits: [Donate]

Total Replies: 12


Hi. I'm a 26 y.o. nursing student and I am working part-time. I am trying to figure out the best way to settle with a debt-collection agency on some debts from a cell phone contract and a credit card.

Should I receive a verfication of settlement from them before settling? What are the steps to settle? I have a little cash set aside that I can use, and I'm wondering how to do this right to make sure that I don't get the 'short end of the stick' or anything.

any help would be appreciated.

Thank you.


You always want something in writing especially if you are trying to settle. That way they can't call you in a year and say hey, you still owe $$$. Then you want to negotiate. Make them get close to your figure, I will call and negotiate when you are ready. I'm helping someone else here with it.


lrhall41

Submitted by BEAUTY1217 on Fri, 12/15/2006 - 09:21

( Posts: 281 | Credits: )


Well - one is from Spring '05
The other is from Oct '05 or so before they were turned to collections.

One balance is $1800 or so
The other is $700 or so (cell bill)

How low can I negotiate?
I really want to get these paid so I can make a fresh start...it's dragging me down.

Thanks for any help.

julie


lrhall41

Submitted by anjfra on Fri, 12/15/2006 - 11:18

( Posts: 4 | Credits: )


Usually when they are less than a year a settlment offer can range anywhere from 75-85%


lrhall41

Submitted by BEAUTY1217 on Fri, 12/15/2006 - 11:32

( Posts: 281 | Credits: )


Settlements aren't always based on age. It depends on your circumstances. You could try sending them a letter and a check along with an agreement that by cashing this check they are agreeing to consider your account settled.

There is a slight danger to settleing accounts. A first settlement will hurt your credit score up to 150 points. After that it won't matter. It's better to settle than have a long term payment plan past 6 months.


lrhall41

Submitted by FYI on Mon, 12/18/2006 - 19:52

( Posts: 1950 | Credits: )


When you sign up for a service be it credit card or cable TV you are agreeing to pay the balance in full. When you pay less than what you agreed to your credit score will reflect that. The first settleement is the one that hurts your score the most. After that then it doesn't matter as much.

I don't normaly reccomend settleing accounts if you can pay the balance within a 6 month period.


lrhall41

Submitted by FYI on Tue, 12/19/2006 - 19:03

( Posts: 1950 | Credits: )