I'm getting collection calls from a credit card company and they are telling me time is running out, they are about to charge off, etc. The last call was somewhat rude and I think they are trying to intimidate me. I want to work something out with them, but when I tell them what I am honestly able to pay, they don't want to hear it. I've had several conversations with collectors and I never get anywhere, but it makes no sense to agree to payments that I know I won't be able to make. Is it worth it to even try to talk to them?
2006-10-19 04:54:02 · 12 answers · asked by michelle j 2 in Business & Finance ➔ Credit
Let me start by point out some bad advice you are being given.
Milomax wants you to pay what you can. I disagree. Once you make a payment, you "validate" the debt, and you are going to be legally forced acknowledge the debt. They can then demand greater payments. Hold off until you can get a firm payment agreement.
Debt counsolers/repair companies do the same thing you can do yourself, but they are going to charge you a fee! And many times, not only do they not help, they can actually damage your credit even more!
What I suggest is quit talking to them! From now on, everything goes in writing.
DO NOT talk to the collection agent. You have no legal obligation to talk to them at all, as your debt is to the original creditor.
Call the original creditor and try to deal with them. If they won't work with you (many won't) then you will have to work with the collector. But give it a try anyway. The smarter creditors realize that they will get more money dealing with you then through a collection agency, as they don't have to pay them a percentage.
Make them a REASONABLE offer! If you owe them $2,000 and only offer them $20 a month, forget it! It's not reasonable for them to wait 10 years to get paid! Offer that if they agree to freeze late/interest payments, you will pay them $170 a month and pay this off in one year. (example).
If they will not accept a reasonable offer, then just don't pay it. What choice do you have? Your credit will get a negative report (if it's not there already).
Worst case...it goes to court. Depending on the state you live in, many states allow the judge to order installment plans. If you show the judge you made an attempt, the judge will allow a reduced amount.
I know someone who went this route, and the collection agent was a total jerk! The judge allowed her to make $5 a month payments!
Good luck, hope it works out.
2006-10-19 08:56:06 · answer #1 · answered by Anonymous · 0⤊ 0⤋
You really don't want to let your debt charge off. Try talking to them again, and tell them this is absolutely all that you can do. They will try to talk you into as much as they possibly can, you just need to be firm in saying that what you have offered is all you can do.
In the meantime, send them what you can (and ONLY what you can afford) - it at least shows you are making an effort to pay what you owe.
Otherwise, the others are right. Get into a credit counseling program asap. Not a settlement company - true consumer credit counseling.
2006-10-19 07:02:05 · answer #2 · answered by milomax 6 · 0⤊ 0⤋
Go to a debt management company. They will work with the credit companies and get you a better deal. Unfortunately, the credit companies have no obligation to allow you to pay what you want (can afford); they can set the payments as they see fit.
2006-10-19 04:58:18 · answer #3 · answered by Jensenfan 5 · 0⤊ 0⤋
You need to go to consumers credit counseling service or a like company who will work with your creditors to lower the rates and payment amounts.
2006-10-19 05:18:06 · answer #4 · answered by Luckys Charm 4 · 0⤊ 0⤋
If it's a colletions agency, no is not worthed, they want to get the most money out of you since they work on comission.
Go to the company you owe money from and try to make a deal with them
Good Luck!
2006-10-19 04:56:52 · answer #5 · answered by ? 6 · 0⤊ 0⤋
You need to go to consumers credit counseling service or a like company who will work with your creditors to lower the rates and payment amounts.
2006-10-19 04:56:16 · answer #6 · answered by moluvsmark 4 · 0⤊ 0⤋
If you desire to pay off your debts (which is great), find out an address to mail payments to, and make regular payments of what you can afford. Keep records of what you paid.
You might also want to try to work out a "deal", I know I've seen collection agencies want to cut my bill in half if I will just pay it off.
2006-10-19 04:58:13 · answer #7 · answered by Anonymous · 0⤊ 0⤋
They do try to resort to bully tactics....and some even resort to illegal acts such as threatening you with jail, etc. If I was you I would probably hire a lawyer (you can get an affordable one or sometimes you can get help from county programs) and take it to court telling them what you are able to pay. Good luck.
2006-10-19 04:57:54 · answer #8 · answered by Christabelle 6 · 0⤊ 0⤋
I have had the same problem, you talk to them one day tell them you can pay so much, they agree and the next day someone else calls you being rude and tells you its not enough, and you have to pay what they want. I have given up trying to talk to them, I send them what I can afford to pay. You don't have to put up with the harassement.
2006-10-19 04:58:23 · answer #9 · answered by Tommy's_Sweet_Girl 5 · 0⤊ 0⤋
no they are just trying to intimiadate you for $. If it charges off it just hurts your credit and they will continue to call, see if you can get into a debt relief program, and if you send those companies a letter telling them to contact you by mail only - they have to listen.
2006-10-19 04:58:03 · answer #10 · answered by Ash 2 · 0⤊ 0⤋