Question

First of all, send a debt validation letter to the collection agency asking them to provide you with proof that you owe this debt and how they determined the amount! Can they sue you? Yes, but it is not likely as they are not attorneys and do not have the means, in most cases, to go to a court in your county and file a suit! It cuts into the profit margin! They will probably not want to accept 10.00 per month! I would not send them anything until they validate that debt! Then negotiate the amount down to what you are willing to pay! They probably bought it for around 75.00 so offer them around 300.00 to settle and see what they say! Unless the debt is old and then I would check the statute of limitations!

Hi,

If you are making payments less than the minimum, you can still get sued by the collection agency. If you are sure about this debt, then you can directly try to settle the debt. However, if you are in any way unsure of this debt, you can send a debt validation letter to the collection agency. Whatever you do, get a written payment agreement.

Thanks

I think your payment of $10 every month is much lesser than your minimum payments. And since your payments are such low, you stand a chance of getting sued by the collection agency. Since you can't afford more than $10 per month, I'ld advise you to buy out time from them. This can be done, by sending them a debt validation letter through certified post. They collection agency have to reply to the letter which will buy you a little time.

Regarding you being sued by the agency, I don't think the agency will walk in that path. They've bought your account from your creditors at a price and the courtship may lower their profit margin.

I'll suggest you to find means to earn some extra amount of money each month by finding yourself a second job or getting yourself an online job which can be done at your convenient time. The extra cash will help you to pay off your debt.

If you get the reply to your validation letter, start your negotiations to settle the debt. A good negotiation process will help you to lower your payments by almost 40-60% of your actual outstanding amount. If they agree, get the agreement in writing.