What to say when trying to settle with collectors on your credit report?

Question

I have heard people say if you call collectors to whom you owe money and say you owe them 1200 dollars in many instances if you call them they will often settle for half. If this is true, what is said, what is the key to get them to settle?

Answer 1

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Answer 2

They will settle as long as the debt is already with an outside agency. If it's still inhouse odds are they wont settle unless your are behind 6 months or more. Like the other person said it is best to pay what you owe because if you dont than the creditor will put "settled for less than full balance" on your credit report. On the other hand if you are already in collections, it is probably already on your credit and the damage is done. I personally have and would settle for half the balance. It wont affect you in the long run when you go to apply for a mortgage loan or any other financing, your already going to have to rebuild your credit- why not make it easier on yourself. By the way there is nothing special you have to say - just tell them you wont pay more than $600.00 ( if the previous debt is about $1200) they will probably take it or let you pay $700.00. Another thing expect to pay it all at once or in two payments. Usually when you settle that is all they will allow- Good luck!! :)

Answer 3

Collectors usually won't settle unless the debt has been incurred for a certain period of time. Sometimes if the debt is from a credit card, say a department store credit care, you can negotiate to have them drop the interest that has accumulated on that account. Also, sometimes with a credit card such as VISA, Mastercard, etc., if they have been attempting to collect for quite some time, and the debt is listed as a charge-off, you can negotiate for half of the remaining balance. It's worth a shot. Best of luck to you

Answer 4

It is always best to pay what you owe.

Sometimes a creditor may agree to forgive 'overdue interest' that has accumulated on your debt.

You should try to find a solution that is Win-Win.

Perhaps if you were to give 12 monthly cheques to clear the balance owing, your Creditor may accommodate you.

Much will depend on your credit history with him/her. (If you have bounced cheques, for example, chances are s/he won't be as patient with you.)

Go ahead and communicate with creditor with a view to forming a mutually advantageous repayment arrangement .... and stick with it.

Hope this is of help.

Answer 5

Yes talk to them try it you got noting to lose