Dealing with original creditor

Hi!

It's much easier working with the creditors than working with the collection agencies. The creditors will appreciate hearing from you before you become delinquent on your bills. If you explain your financial problems to them, they will be willing to make an arrangement with you.

In some cases, it might happen that you were not able to inform your creditors and the bills became delinquent. If it has gone this far, then the credit ratings might have been hurt or the accounts might have been sent to collection agencies.

There are many advantages of working with the creditors:

• The original creditor will be willing to eliminate the late charges,
  
  
• Your accounts will not be reported delinquent to the CRAs if you have made an arrangement with them.
  
  
• The lender will offer you to make the payments on interests only for the time being.
  
  
• Your utilities won't be cut off.
  
  
• Your account won't be sent to a collection agency
  

• Calculate the total income that you need to take at home
  
  
• Calculate all your monthly fixed payments, like the mortgage, rent, auto loans, etc.
  
  
• Calculate all your monthly flexible payments like food, clothing, fun etc.
  
  
• And the last thing that you need to consider is the amount of money that you can save at the end of the month for your future.
  

I have talked to the credtor and made an offer. They accepted and want a check by mail. They faxed over a letter without a signature agreeing and stated I should keep the letter as proof of our agreement and my account would be considered settled not paid in full.

Call the creditors once again and thank them for accepting your proposal. However, there is one thing that you need to stress on with your creditors. 'Settled' status is a negative remark and will hurt your file. Insist them to update your account with 'Paid as agreed'. This will give a good view to your future lenders.

There is no harm in sending a check by mail. Send it certified with return receipt requested. You will be sure that the creditors are receiving your payments.

I'm sorry I ment they want a check by phone. Is that acceptable? I will try the "paid as agreed", but they would not budge off of "settled".

It's my personal advice to you. I will not prefer a check by phone or payment by using a credit/debit card. There are many stories where people have been scammed by some companies after they have taken consumer's personal information. You need to have a proof of your payment. Tell the company that you prefer to send the check by mail. They will be getting their money in this way too.

Thank you for the advice. I'm dealing with MBNA Bank and I will push for a certified check and "paid as agreed". If they refuse I will have to make a decision to pay and have the recoeds read "settled" instead of "charge off". It would be nice to have everything.

Sleepy1, if you are not getting the expected results while negotiating with MBNA bank, you can consider for some professional help also. The consultants know how to speak with the creditors. You can try this option before you accept something that is less favorable.

Sleepy1,

Reps from consolidation companies can accomplish the work easily what you find very difficult simply because they are well-trained and they are there in the industry for several years. You can consider taking proficient help at this stage. Your credit record is the matter after all.

about 3 years ago, my vehicle was repossessed. It is showing on my cr that I owe a bit less than 5k. I haven't been contacted by the lender in over 2 1/2 years. I am in a better place financially now, and would like to pay off this debt. How do I find out which credit agency the debt is with (if it is not still with the oc), and, if so, what type of chances do I have for settling the debt at a lower amount? Any additional tips will be very helpful.

Cpeach

Order a copy of your latest credit report and see the latest standing of this account. If the lenders have done any updates in your accounts, it will be reported to the credit bureaus. Call the bureau if you need more information on this matter.

Once you have seen the lender's details in the latest copy of your CR, contact them and show your concern to pay this debt. Since you are contacting them before they did, they will appreciate to work with you on your accounts. Try to arrange a payment plan with them so that you have easy repayment options. If you can advance them with some money along with your proposal, it will of great help to your negotiation.

Talk to your lender and let us know his response. Most of my lenders were very good towards me and accepted my proposal gladly. I hope it works like it did for me.