I got behind on credit card payments , so i turned to a debt settlement program. I have been paying for 5?

Question

months. I recieved a demand letter from a collection attorney. They are giving me the option of paying monthly. If I start paying them a reasonable amount will they accept?

Answer 1

I guess a good question is what kind of debt settlement program are you in? Consumer Credit counseling type debt repayment, or actual settlements where they negotiate down on old collection accounts and often lump sum the payoff?

If it's the first, talk to your counselor but you shouldn't even be getting those kinds of letters.

If it's the latter, I'd probably see how much they will take, then talk to your debt settler. Realistically most debt settlers get 25% of what they save you, so IF it you can it for the same price, you'd save that fee, but...the collection agents are real crooks and probably won't go as low if you negotiate directly.

I'm thinking of going the debt settlement route but wonder if they can really get it enough lower to be worth their fee (though not dealing with the lying scumbags has its value).

I'd love to know how it is working for you. Email me if you wish to share.

Answer 2

The following articles should answer your question

Debt Consolidation - Get Out Of Debt
http://www.askaquery.com/Answers/qn1643.html

How to Hire a Debt Counselor?
http://www.askaquery.com/Answers/qn1584.html

What is Debt Relief?
http://www.askaquery.com/Answers/qn1583.html

Debt Management and Building Wealth
http://www.askaquery.com/Answers/qn1581

Answer 3

In Asia, the payment is negotiable. Depends on case to case basis. My friend didn't pay her $1600.00 telephone bills and received letter from the service provider lawyer. She paid the amount $100 per month after negotation.

http://www.website.ws/powercontrol

Answer 4

Plenty of good advice here.