when negotiating with your credit card companies, where can you start for full payoff?

Question

If a credit card balance goes to collections, and you want to settle with the collection company by paying in full, where do you start negotiations

Answer 1

Begin your negotiations with the knowledge that just paying off the debt does NOT remove the negative information from your credit report. So demand IN WRITING that once the debt is paid off, they will remove the item from your credit report.

Offer at least 60% of the balance, but expect to end up paying as much as 80%. Start your offer low and work up.

Make sure that if they accept only a partial payment of the balance, you get IN WRITING that they are accepting the amount in full. Otherwise they may sell off the remaining balance to another collection agency.

Answer 2

that is going to impact your credit considering you would be reconciling with the collections company and not the mastercard company itself. in case you're no longer in collections yet. call your mastercard company and spot in the event that they provide any form of credit protector provider. they in lots of situations grant you with unfastened 30 days after which value you one million-15% of what's on your bill.. (is clever?) as a provider value. yet they gained't document you to the credit bureau for 3 months as quickly as they have despatched your account to series. in case you unfastened your pastime or can no longer make the charge they're going to do it for you and you will in no way incur a prior due value. because of the fact the credit protector will pay your bill till now its previous due.

Answer 3

Try to be reasonable. For instance, if your payoff balance is $5,000.00, ask if they would settle for $3,000.00.