Small Debt turned over to a collection agency

Date: Tue, 06/05/2007 - 18:23

Submitted by anonymous
on Tue, 06/05/2007 - 18:23

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Total Replies: 2

I was just wondering what anybody here would reccomend. I have just over 5000 dollars in debt from 2 credit cards (while I was in college) The debt was turned over to a collection agency in 2005 They told me I can pay 50 dollars a month (25 toward each card). The debts are not gaining interest anymore. Basically since 5 months ago I couldnt even scrounge up 50 dollars a month. Then the Must pay in full now letters started coming in. Well today I got a phone call from a guy saying to call him or a decision will be made on my behalf. On the bright side being graduated just now I got a decent job and an apartment. I can afford (while still leaving myself some saving and spending money after bills and rent) about 350 dollars a month. The debt itself is roughly 3 years old. I am just wondering what I should expect out of this guy when I call him. A. its impossible for me to beg borrow or steal the full amount. B. 350 a month toward the entire debt is what I can pay. I know some of you may look at this and say 5000? come back when you get real debt. Its just that for awhile I wasnt capable of paying anything toward it (that was reasonable to the creditors at least). By my estimate since they arent tacking on any interest it could be paid off in about a year at 350 a month. I am just asking for some advice and personal experience on whether or not you guys think they will take my offer, and if they dont what are my options then?

Hi TS-- first, the debt is not three years old anymore. The

Hi TS--

first, the debt is not three years old anymore. The age of a debt is directly tied to the last payment you made, which seems to be about five months ago if I read your post right. There are a few things I would recommend. First, are you certain that this CA has the legal right to collect on this debt? If they don't, they are taking your money and it is not being applied to the debt.

Second, I cannot really tell you what to expect when you talk to this guy. Some places will try to work with you. Other collection agencies will refuse to accept a payment arrangement from you. You will just have to see what he tells you on the phone. Either way, it is a good idea to have everything in writing. Instead of telling him on the phone about your proposal, I would send it in a letter, certified mail return receipt. That way, you have written record of your attempt to resolve this.

lrhall41

Submitted by skydivr7673 on Tue, 06/05/2007 - 18:55

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I agree - writing,writing,writing is so very important. And ple

I agree - writing,writing,writing is so very important. And please don't feel that because your debt is at $5000, it is any less important than any one else. If someone has a debt no matter how much and they need help, that is what is important. You came to the best place for that. I have learned so much myself from here, and I just try to add my 2 cents here and there where I can. I have had a CA work with me on terms I could do - I had a medical debt of over $5000, and I paid a down payment and $150 month - this guy was even nice enough to tell me that if there was a month I would be late or short, just to let him know. And he was true to his word. On the other hand, I had another medical debt that the only arrangement they would make was it had to be paid in 6 monthly installments - that's it. He was kinda snotty, but from what I have read here, there are much worse agencies. So basically, I would say keep calm, and see what they have to say. DO NOT give them your financial info to debit an account- you pay on your terms. Good luck and let us know! As I said you will also hear from some great people on this site with more expert info than I have.

lrhall41

Submitted by dalfire497 on Thu, 06/07/2007 - 11:31

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