How to Settle Debts with Collection Agencies?
Part 13-2:
As part of series of articles (blogs)
regarding Credit and Credit Score, here we
go:
Disclaimer:
Every effort has been made to make these
articles as complete and as accurate as
possible, but no warranty or fitness is implied.
The information provided is on an “as is” basis.
The author shall have neither liability nor
responsibility to any person or entity with
respect to any loss or damages arising from the
information contained in this book.
The author is not engaged in professional
services. If professional advice or other expert
assistance is required, the services of a
competent professional person should be sought.
How to Settle Debts with Collection Agencies?
Remember, when you want or
need to settle your account with a collection
agency, you need to be firm, negotiate well and
settle the account once and forever. Don’t make
partial payments since it could damage your
credit score more, as shown on the next article
“Do Not Pay Partial Payment Unless … ” .
How much to Settle Debts for?
How much you should settle for a
debt depends on the age of the account in
collections and how quickly you need the account
settled. The more recent the account is in
collections, the harder to negotiate for less
than the full amount. The older the account,
especially close to the statute of limitation,
the easier to negotiate and sometimes you could
settle the account for pennies on the dollar.
After you negotiate and
agree to the settlement amount, you must get
something in writing from the debt collector
indicating that when you pay the agreed amount
they will remove the negative information from
your credit or update your credit, by indicating
“paid in full”, “paid as agreed”, “settled” or
something in that affect. Remember, as we stated
earlier “paid in full” or removing the negative
information completely from the credit file is
the best option for you. “settled” still has
negative impact on your score, but not as much
as indicating your account is in Collection or
unpaid, etc.
Do not pay before you get
that agreement from the debt collector in
writing (e.g., letter, email, fax, etc. on their
official stationary with their name, position,
collection agency name/number/address, etc)
HOW to overcome the problems with your credit
history and credit score?
Knowledge, education, awareness, practice and
discipline are the essential keys to being
successful on any subject. The book,
"Credit Score Tips and Tricks",
provides you information, tools, techniques to
educate yourself and manage your credit report &
credit score, and therefore manage your finances
effectively at no additional cost.
I have decided to bring and share with you,
chapters or sections of the book,
Credit Score Tips and Tricks,
as series of
articles here. This is the number
13-2 of such a
series.
I also created and manage a GROUP in ActiveRain,
Credit Reports and Credit Scores, Please
feel free to join and share your thoughts and
experiences.
