unsecured debt; collections accounts
2006-08-12 15:34:16 · 8 answers · asked by PETER 2 in Business & Finance ➔ Taxes ➔ United States
Call and tell them you want to make arrangements and that you're thinking about using an agency, but want to cut out the middle man. They might be more willing to work with you. The reason being that when you work with a debt consolidation agency, they make deals with your creditors and pay them pennies on the dollar to assume your debt. You end up paying your full debt to the agency.
Going directly to your creditors, they may end up getting less than the debt, but more than they would get from the agency. If you talk to someone smart, they will seriously consider the offer.
2006-08-12 16:38:12 · answer #1 · answered by misslabeled 7 · 0⤊ 0⤋
Check with a legitimate consumer credit counseling plan first. They will arrange repayments to creditors on a voluntary basis and reduce your interests (in most but not all cases) and get you debt free in 3-4 years. Debt settlement isn't really much different from bankruptcy, is it? You are defaulting on what you owe but still paying half or whatever percentage. With true bankruptcy (if you qualify) you owe nothing. Your credit report??? It will be noted either way for 6-10 years regardless. You can call each creditor and see what they will offer you in terms of a repayment agreement but it's unlikely that you'll find it worthwhile.
2006-08-12 15:49:24 · answer #2 · answered by Anonymous · 0⤊ 0⤋
You can ask. Creditors are not likely to "give a little" since they have so much more power now, thanks to the changes in bankruptcy filing by President Bush. You can not easily erase a debt, so they have much less incentive to help you. They would much rather force you into Chapter 13 bankruptcy. Then the courts enter a judgment against you, which stays on your record for future creditors to see. Also, you are forced to pay and the courts are then in control. It can't hurt to ask, but if you are already in collections, it is not very likely. Try going to a Lutheran Social Services, CCCS, legitimate company to help negotiate your debts.
2006-08-12 15:41:35 · answer #3 · answered by MSA2004 2 · 0⤊ 0⤋
Many debt settlement companies that have been close down reported that decrease than 2% of their shoppers accomplished their debt settlement application efficiently. evaluate that quantity to the over 40% of debt administration plan shoppers that finished repayment in crammed with all their money owed. If all your money owed are in collections, then a debt administration plan isn't for you. besides the undeniable fact that, a unfastened credit counseling consultation could be useful.
2016-11-04 11:26:30 · answer #4 · answered by Anonymous · 0⤊ 0⤋
Write to them and request a settlement; tell what you can afford to pay. You can call them, but it is only binding if it is in writing, so you should at least follow up in writing.
2006-08-12 15:40:26 · answer #5 · answered by grinningleaf 4 · 0⤊ 0⤋
Check these articles out, it may help:
What is Debt Relief?
http://www.askaquery.com/Answers/qn1583.html
Debt Management and Building Wealth
http://www.askaquery.com/Answers/qn1581
How to lower your debts?
http://www.askaquery.com/Answers/qn1576.html
How to reduce debt : How to lower your expenses?
http://www.askaquery.com/Answers/qn1577.html
2006-08-13 00:04:58 · answer #6 · answered by curtain r 2 · 0⤊ 0⤋
hello there
here's tons of reading on everything debt related:
credit cards http://credit-cards.ebookorama.com
and general debt http://finance.ebookorama.com
also plenty more to read here
http://credit.ebookorama.com
http://credit-repair.ebookorama.com
good luck!
2006-08-15 17:15:02 · answer #7 · answered by Anonymous · 0⤊ 0⤋
Plenty of good advice here.
2006-08-12 19:35:40 · answer #8 · answered by Anonymous · 0⤊ 0⤋