How to begin the process
Date: Mon, 02/27/2012 - 22:38
Long Story Short: When I was in college I acquired a lot of debt as they were giving these credit cards like free candy. Funny looking back I got $7500 credit line at age of 20, just from one of my cards. However when I lost my job, I couldn't pay any of the cards; my first delinquencies began in winter of 2009. I ignored all debt collection since then, as a college student I just didn't have the resources.
Now I saved a bit more money, and I have begun to look at the mail from CA, and they offer amazing deals (Asset Acceptance is willing to settle a $3999 for $99, they will provide a paid account letter with them). However after reading these forums, I understand that I have to be more proactive then just send the money. So here is where I need help: how do I start?
By the way here is what I already learnt from this site, and I need a reality check and a good advise:
1) I know I would be wise to validate my individual debt account with the CA
2) Negotiate a lower payment option, and get it signed on paper
3) Ultimately try to get pay of delete, and as i read from SOAPLADY it is a goodwill on their behalf, but my debt is old and from other sources I read that this debt is more likely to qualify for this type of offer.
4) As far as validating I can see these agencies on my credit report, is that enough?
5) Also Midland Credit Management holds several of my delinquent credit lines can I work out a large payment for all three, instead of working every single one?
6) Do I speak on the phone first, and get a signature and then settle? if so, what are the things I shouldn't say, like I understand that I should not admit the responsibility for the debt, what else?
I hope it wasn't too much, but before I make THE call I wanted to know, so I wont sound like I got a foot in my mouth.
Thanks
You are right. You need to ask the collection agencies to valida
You are right. You need to ask the collection agencies to validate the debt.
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As far as validating I can see these agencies on my credit report, is that enough? |
This is not enough. You should ask them to validate the debt in writing.
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Also Midland Credit Management holds several of my delinquent credit lines can I work out a large payment for all three, instead of working every single one? |
You can try to work out a large payment for all 3.
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Do I speak on the phone first, and get a signature and then settle? |
Once the debt is validated, call them up and explain your financial situation. Tell them how much you can pay. Have patience and be polite. You can record the conversation if required.
Greatly Appreciate it
I have been surfing through this site, as it has an overload of information, I apologize if I do ask similar or same question (but I tried my best to do my research).
I am trying to get a job down the road with company that does credit check, from what I understand they do not really care if I have high or low score, but if I have debt owed. That's why I want to resolve it, or find best way to settle it.
I guess the main few questions that I still have are:
Since My debt is exactly three years old from first delinquency, do I have any leverage with CA, as far as lowering the settlement. Also I understand that the best resolution is Pay for Delete, does the age of my debt help with pursuing this outcome? Or what is the best strategy to get PFD?
Also if I am unable Pay for Delete, what is second best resolution I can go for? Settled Debt/Paid in Full/ or what?
Remember I am trying to show to my future employer a level of maturity by settling my old debts, I just need help going about it in the right way.
Generally, employers check your credit in order to ensure you ha
Generally, employers check your credit in order to ensure you have no "fraud" showing on your account.
Some info on pay for deletes:
1. They're rare
2. They're an act of goodwill by the creditor, generally given to a previously good payer. If you're 3 years behind, it's unlikely you'll get a pay for delete.
3. When they are given, it's usually because you agree to pay in full.
You're probably better off asking for a settlement. You can also ask for the pay for delete but don't let that be a make or break decision for you.
Thank you for your response
The job I am speaking of is in military and when they do security clearance (such as top secret) they check credit, and if someone has an excessive amount of unpaid debt (i.e. me), then that person becomes a liability to hold the security clearance.
The reason why I thought the age of my debt is a leverage is because the deals to "settle" became better and better; from 30% to 50% and now 80%+ off. It just seems to be to good to be true. I want to be absolutely sure I am doing the wisest thing, before I sign those checks. I read stories of CA taking money and remaining inactive, pay for delete is great, but when you say settle doesn't that mean few options, such as paid in full or something else.
Thank you for your response
The job I was referring to is in military duty with top secret certification and primarily the reason (as I was explained) was that people with debts become a liability as they are easier to bribe and take advantage of by interested parties, meaning you got no debt to settle then no one has leverage on you. However I might have it wrong, even through a federal agent explained it to be in such frame work.
However I as an applicant can apply and worry less if my debts settled, meaning they care less about my score but the fact that my credit cards are paid off. Thus I am trying to settle the debt in the cheapest and most efficient way possible. What I am not sure of is if I can not get pay for delete, what is exactly should I push for next? settled? paid in full? what is most realistic?
I apologize if I am repeating myself, and all of the posts were very helpful, and I thank all of those that took their time to write them, but I am just unclear on those steps.