Settlement offer on husbands debt

The CA has the legal rights to collect the debt from you if your lenders have hired them for this work. If they are unable to do so, the account will be sent back to the creditor who might further take legal actions.

If these actions are taken, it can include judgment which comprises of wage garnishment or repossession.

It is also important for you to know how your account will be reported in the credit report. The status of 'Settled' will hurt your ratings and your scores will get lowered.

Try to arrange for some money and pay off the debt. It is better not to get involved in further harassments which might cost you very expensive.

Keep negotiating with them for reducing the token money. I am very sorry if I hurt you on this, but you will like to understand the problem. Since you might have expressed that you are lacking money, they are hesitant to offer you any sound deal. So, if you can arrange some large amount of money and show it to them, you will see the various offers open in front of you.

I know not all collection agencies are the same---some will work with you and some will not. Some are super nice while others are, well, 'mean'--(putting it nicely).
I have worked with several that are on both sides of the scale. In my case, most will accept a monthly payment plan. They will start off saying they want the full amount, its up to you to negotiate back and forth with them.
I started my negotiations by writing them a letter and explaining that due to my financial situation it was impossible for me to pay the full amount that they were asking at this time. But I could make monthly payments every month, promising to do so every month until the debt was paid off. I would include a payment with this letter, its called a 'good faith' payment. If you can send $50 a month, then put a check or money order for this amount in the letter. Tell them that this is a good faith payment and if they cash, its constituting an agreement and they are accepting the terms by cashing the check.
Preferrably, I use checks, that way I have a paper trail and can monitor it through my bank account and know whether they cashed it or not. It doesn't have to be $50. I was just using that amount for an example. If its a small debt, try sending $25, if its larger, try sending $100. Just whatever you can afford, put that out there as a figure to negoiate.

Don't be discouraged if the first time, you receive you payment back from collection agency. This happened to me last summer. I wrote the letter, put in $50 and they sent it back. We negoiated back and forth, it got a little heated. They were calling my home threatening me over court, threatening me over my property and so on. We finally reached an agreement and now you can melt butter in these peoples mouths. And its all good.

They like to come across trying to demand the whole amount but most will be happy with a payment plan. Hope I have helped. If you have any questions just ask. Shirley

DO NOT speak with these people! They are scam artists and they almost ALWAYS violate your rights. Do research, write everything down, dispute, validate, check SOL's, keep a paper trail and if you settle, have all the documentation and signatures because they will turn around and say you didn't pay! Be VERY, VERY careful! They are 'banking' on the fact that you may not know you're rights! They extort and exploit! Whatever you do! Get EVERYTHING in writing!!!!!

Dispute everything? That is not a wise move. You should only dispute what you believe is incorrect.

As for settlements if it is your first settlement it could lower your score by 100 points. If you were offered a 50% settlement and it is somehting you really want to do then there really might not be a payment plan avaliable that would streach too far over a 30 day period. Could you possibly do half the first part of the month then the remaining part at the end?

If settling is your only means..then go for it. Your credit score will only be temporarily effected and after you get on your feet again, you will rebuild your credit score and future aspect creditors will look at your new history of payment rather than glare at your "settled" account.

Good luck.

I settled about 7 years ago. The debt was $14000 and we paid $10000. It hurt my credit for about a year. Today my score is over 800.

Thanks for sharing ninergirl8....