2006-11-06 08:00:27 · 5 answers · asked by Diane M 1 in Business & Finance ➔ Personal Finance
Before you settle with any collection agency or any one that you owe money to go to the FTC website, and get the facts first, that way you know how to talk to these people. If you settle, ask that they report it as paid in full on your credit report. If they agree, get that in writing before sending any payments. If they won't put it in writing, make monthly payments and pay the full amount. Paid in full will look better on your credit report and help increase your credit score, while settled can lower your credit score.
2006-11-06 09:28:47 · answer #1 · answered by Anonymous · 1⤊ 0⤋
Your debt with the creditor will be considered paid in full, and the debt will show on your credit report as settled. This is a good thing. It allows the agency to be finished with you (they can work on someone else), your debt is cleared, and the original creditor gets their money (most of it anyway), and everyone can close their books on the sitaution.
In most cases, a settlement means you must pay the entire amount now--not over several months. That may enter into your decision of whether to accept this offer.
2006-11-06 08:10:16 · answer #2 · answered by melouofs 7 · 2⤊ 0⤋
Once your debt is with collections, then your credit has taken the big hit. Settling on it can help inch your score up, but don't expect a substantial increase until the record falls off of your credit report permanently.
Occasionally, collection agencies will agree to delete the negative report to the credit bureaus if you settle with them. You must get them to agree to this in writing. Credit bureaus hate this, but you can sometimes negotiate this.
Good luck.
2006-11-06 09:22:13 · answer #3 · answered by Anonymous · 1⤊ 0⤋
If I were you, I would make it part of the settlement that they report the payment of the debt to the credit agencies. That will help you in the long run by bumping up your FICO score.
2006-11-06 08:09:09 · answer #4 · answered by Tim 6 · 0⤊ 0⤋
You are expected to stick to the agreements as in ammount you can pay per month....hopefully you have agreed to an ammount you can afford. Keep in touch with them if your circumstances change. If you don't the ramifications are bad credit ratings and bailiffs.
2006-11-06 08:09:32 · answer #5 · answered by minitheminx65 5 · 0⤊ 0⤋