Starting debt Settlement - Need Help
Date: Thu, 07/14/2011 - 17:04
I have more then 52k unsecured credit card debt. Everything was going on untill March 2010 i completley stopped paying my credit cards, due to some personal and fianacial issues. So my credit score dip and my account got passed to various collection agencies in dec / jan.
Well now I get call from different collection agencies to make settlement ( lIke i had 20 k on 1 credit card for which the settlement offer is 6k ). I am not going through any lawyer or debt payment firms, so my questions are -
1. Just want to know if still there is some hope to get my credit on track ?
2. If i go for settlement, how long this is going to be on records ?
3. What i am doing is right or should i go thru some non-profit org to deal with collection agency( i m now in position to repay in due course of time)
4. When a collection agency calls, how do i verify that they actually have the debt or just conning me ?
I am relatively new to this, so any advice or any pitfalls to avoid or some better places to look for guidance. Any help will be deeply appreciated.
Thanks
Robert
Hi, Well, yes you can certainly get your credit back on track i
Hi,
Well, yes you can certainly get your credit back on track if you settle the debt yourself but that'll take time. Since you're not taking help of any professional debt settlement company, you must be cautious about the steps that you're taking. Negotiate with your creditors and tell them about the genuine reason that is keeping you from making timely payments on all your cards. Show them, through a well-crafted budget, that you'll make timely payments after the debts are settled and keep your words.
Debt settlement stays on your credit report for almost 7 long years but there are ways to improve your credit report through debt settlement. And if you're not sure whether or not your debt collectors are deceiving you, ask them to send you in written the details of the debt accounts and the amount that you owe on each of them. This will ensure transparency.
collection calls
Hi robert,
Welcome to the forums :)
You definitely can get back your credit on track if you pay off your credit card debts. If you go for the settlements, it will stay on your credit reports for 7 years. However, the offer that you are getting on the 20K credit card debt is really good and so I personally feel that you should go for it.
You can settle your debts on your own and you need not get the help of any professionals. In order to make sure that the collection agency isn???t duping you, first check your credit reports to find out of these collection agencies are listed their on your credit report. If required, try to get the debts validated by sending a debt validation letter to the collection agency. Another thing is if the collection agency is at all not trying to scam you, they should be able to provide you settlement agreement.
Hope this helps,
Marvel Becks
I agree with what the other posters have said. The settlement of
I agree with what the other posters have said. The settlement offer is definitely not bad. But you should follow the below mentioned steps before settling your debts:
1. Check your credit report to know about the status of your accounts
2. Contact the collection agency and send a debt validation letter in writing. If they don't give a reply, then send a Cease and Desist letter to them.
3. Draw up a contract and pay the settled amount on the scheduled date
4. Ask them to update your account status as "paid as settled" or paid as agreed".
Keep on adding positive information on your credit report. Make timely payments on other accounts. This will help you get your credit back on track. The item will be there for 7 years. It is best to settle your debts on your own. You should get professional help only when you are not able to settle your debts on your own.
Good luck!
Worry about debt settlement first, then you can start credit rep
Worry about debt settlement first, then you can start credit repair.
Make sure you get everything in WRITING (they can fax you a settlement letter) and pay with money orders or cashier's checks ONLY.
Once you have settled everything, there are plenty of resources on the web that tell you how to repair your credit.
Worse case, the paid collections will be on your report for 7 years and each year that goes by, the less it affects your credit.