I agreed to settle my credit card debt,within 30 days to my visa card in collections 1200$ instead of 1900?

Question

Can i reset the 30 days, telling them i can't make the full payment within this time frame, but rather settle next month instead ? can i call them and do this ?
it was a sears card $1000 max. I guess interest grew to $1900, with 6 months no payment with Sears, and then 31/2 years collections. It grew to $1900 total after roughly 4 years.

What should the settlement be ratio? Does $1200 sound alright ?
or they can settle for less ? i have only $800 ?

Does settling credit card debt affect my credit score ? Currently paying on Student loan, monthy.
This would up my score, wouldn't ?

Answer 1

Are yo dealing with Sears directly, and has it ever been sent to a collection account, IE " ABC Collectors".

Typically, ABC Collectors would buy the debt for pennies on the dollars, or share with Sears the amount the collect.

Most commonly, they sell the debt. If you are dealing with Sears directly, they are going to try to hold you to the full amount ( the amount you originally owed, 900 or whatver ) and they will cut the late fees/interest.

If you are dealing with a colelction company, they would most likely settle for 7-800 dollars , but Id offer them 500 to start, they always go for the "bump".

Answer 2

You should never agree to a settlement offer with a collection agency unless you can for sure pay it as agreed.

Otherwise, you lose all your ability to have leverage with them.

Do not send them a penny until you have the settlement agreement in writing. If you can't pay it in full, don't send a partial payment, as they will negate the settlement, and you'd still owe $1100.

You can certainly call them and try to renegotiate. But if you say you've got $800 to give them, offer to send it by Western Union within 24 hours of receipt of their settlement offer (never send money without a written agreement, which you will need to keep for at least 3-5 years after, to make sure no one tries to collect the remaining balance). Maybe if they can get the $800 instantly, they'll let the rest go. Or maybe you can get them to accept $800 now, and the remaining $400 in 60 or 90 days. Again, don't agree unless you are 100% sure you can have the remaining money within the allowed timeframe.

Paying student loans on time will be a positive on your credit report. Once you pay off this collection, start disputing it with the bureaus. Usually a paid collection won't be responded to, and it's possible you can get it deleted.

Answer 3

Hello, Are you making only the minimum payment due on your cards each month, and watching the amount you owe rise with each billing cycle? Do you use your credit cards to purchase everyday household items, like groceries, that you used to buy with cash? If you answered yes to either question, you’re probably dealing with mounting credit card debt. Credit cards are extremely easy to use, but need a great deal of discipline to avoid getting into unmanageable debt. A credit card debt is an unsecured loan, because the credit card company does not hold or ‘secure’ any of your assets to cover the amount you owe the company if you are unable to pay your credit card bill. When you default on a credit card payment by stopping making payments altogether, the credit card company will try and recoup its losses by contacting you, typically through a collection agency. The key to credit card debt consolidation is to avoid getting to the stage where you’re receiving notices and calls from a collection agency. You can do this by taking control of the situation and cutting unnecessary expenses so you have more money to put towards your monthly credit card payments. If the amount is too large, you could consider contacting the credit card company and negotiating a reduced interest rate, and a reduced or waived late fee, to help you pay the debt off. Another option may be to go through a debt consolidation company, which will negotiate on your behalf and take over all communications with the credit card company and collection agency. Remember that even if the credit card company agrees to an interest rate reduction and late fee waiver, information on the payments you didn’t make will still be reflected in your credit report.

Answer 4

by agreeing to a settlement may have reset your SOL, that is the amount of time a company could sue you. Here is what you do tell them i am going to pay you 500 dollars on x date. If they disagree then tell them 600 and thats all you have. with 3.5 years in collections they bought that 1900 balance for 50 bucks or so. even with 600 they are posting a huge profit.

Answer 5

Don't send this collection agency a freakin' penny!!!!!!!! Further more.. don't have any telephone communication with them again. They record all calls. Send them a lettter offering to give them 20% of the original amount = $200.00. Make sure that you state in the letter that your offer is not an admission that you actually owe the debt. This is very important. You are just making an offer to stop the hassle. Instant Message me if you have further questions.

Answer 6

Explain you only have $300 or $400. They will probably settle for that. You could even say you are looking to claim bankruptcy (but you really wouldn't).

Unfortunatly, your credit is already messed up because of this and if you settle, it will make you credit even worse. You might want to speak with a credit couselor or get someone to negotiate for you if you have multiple debts.

Answer 7

Your state may have a 3 year statute of limitations and they can't come after you for the money...Check it out and if it is, they have no claim.....

If it is still within the limit..............

Call them and say that you only could borrow $800...plead with them to take that as full payment and say it's in the mail today.

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Answer 8

u tell them how much u have then u would have an horrible credit score

Answer 9

dont agree to settle unless you have the money - but i am sure they will work something out with you