5 things to remember while settling your debts
Date: Fri, 03/28/2008 - 23:39
You should never deal with a collection agency on the phone: Avoid telephonic conversations with the collection agencies while negotiating your debts.
Get everything in writing: Never expect a collection agency to meet an agreement that was made verbally.
Maintain good records: Keep a record of every written communication you have with the CA. Send letters via certified mail with a RRR. Keep a copy of every letter you send them. Incase you are calling (which in the first place you should avoid) then keep a log of date, time and with whom you spoke.
Give special attention to the penalties and extra interest added on the original amount: If you have a three year old debt that is around $3000 and the CA is demanding $10,000 from you then it is illegal. Know the usury laws of your state.
Do not look too eager to settle the debt: Take enough time to reach an agreement. If the CA comes to know that you are eager to get the debt settled then the CA will insist you to pay the full amount.
Hope it was useful
Nelly
Get everything in writing: Never expect a collection agency to meet an agreement that was made verbally.
Maintain good records: Keep a record of every written communication you have with the CA. Send letters via certified mail with a RRR. Keep a copy of every letter you send them. Incase you are calling (which in the first place you should avoid) then keep a log of date, time and with whom you spoke.
Give special attention to the penalties and extra interest added on the original amount: If you have a three year old debt that is around $3000 and the CA is demanding $10,000 from you then it is illegal. Know the usury laws of your state.
Do not look too eager to settle the debt: Take enough time to reach an agreement. If the CA comes to know that you are eager to get the debt settled then the CA will insist you to pay the full amount.
Hope it was useful
Nelly
Settling with Original Creditor
I'm dealing with my original creditors on 8 credit cards (5 creditors) - I have settled two so far and hope to settle two more this month, it has been very stressful with phone calls daily and mean collection people. When this is done I intend on doing a long post about my experience.
debt
I thank you for all of the advice, GOODNELLY!! Straight and to the point. Sometimes CA's can get overwhelming....especially when they ALl want their money NOW!!
