How Would I Go About Starting to Pay Off My Debt to Some CA?

I would first send validation letters to each of these folks, especially if you are in default. Make sure that they still own the debt, and haven't sold it off.

Once you can verify who owns your debts, I would start out with sending them a settlement proposal. This would be a letter stating what you can pay, and how you plan on paying it (i.e., a single, lump sum payment with the date you want to pay it by, or a list of payments and dates). Request that they send you a signed agreement for your signature if they accept the terms. They will either accept your terms, and forward an agreement, make a counter offer, or completely reject it....demanding payment in full immediately. No matter which option you get, make sure it is fully documented, and keep copies of all money orders/checks. DO NOT agree to direct debits from your bank account, as some CAs have been know to take way more than agreed once given the person's account information, and in many cases, the person never sees the money again.

Even if they sold the debt off (Verizon was written as a Charge-Off, as was the American Eagle Credit Card), aren't you still able to pay back then initial company? I don't know if I necessarily need to validate my debt since I know I incurred these expenses. I just want to send something out and start paying instead of playing a game of cat & mouse for the next few months instead of paying things off. Most of my debt is small and can be paid off quickly.

Here is a mock letter I made up..
[quote]xxxxxx
xxxxxxxx
xxxxxxxxx
October 17, 2007
Verizon Wireless
PO Box 1850
Folsom, CA 95630

Reference: Statement [Number]
To Whom It May Concern:
I would like to work with you to establish a regular payment schedule for my past-due balance of $1,110. This is the amount owed which is shown in my credit report.
For the first half of 2007 when this debt was incurred, I was not employed and was unable to maintain a normal way of living. I have since found a stable job, and would like to resolve this debt as soon as possible.
I would like to suggest monthly payments of $300. This amount is the very most I can afford as of now. If I????????m able to able to pay more, I will.
I hope you find this payment schedule acceptable. Thank you for your understanding in this matter.
Truly yours,

xxxxxxxxxxx[/quote]
Suggestions on this? Should I not even bother? Should I change anything? Or should I just send a validation letter? The one I looked at on the site here isn't really worded the way I need it since I know I already owe them said amounts..

Thanks again!

Many places will not accept the payment if the debt is sold. Once sold, the original creditor no longer cares about the debt. It is a different case if they simply hire a collection agency to collect for them, so that they do not have to do the leg work. This is why it is important to validate debts before making any payments, if you have not made a payment in some time. You want to make sure the place you are sending this payment to is actually the one the money should be going to in order to get things resolved.

Keep in mind, if a debt has been sold, paying the new debt owner will only resolve what they report to your credit reporting agencies. The original creditor will continue to show up on your credit report for 7 years from the time of default/last payment. I would go ahead and go through the process of validation before making any settlement offers.

If you do move forward with settlement of the account, the only suggestion I would have with your letter is to keep it short, simple, and to the point. You really don't need to explain why you fell behind on your payments...as they really don't care. I would suggest changing it up as follows:

Quote:

Sounds like a plan. Do you have a suggestion for a validation letter template? The one one the site basically is saying that I found something in my report and I'm questiningg it.

How would I word a letter basically asking them if they still hold the debt or not?