Trying to consolidate debt into one low monthly payment, but my debt is too low or with collection agencies?

Question

I have about $7,000 in debt with credit cards and medical bills that are with collection agencies. I have contacted several debt relief groups, but unfortunately they only work with people who have more than $10,000 in debt or they are unable to work with collection agencies.

Answer 1

NOOOOOOOooooooo, don't do it. Go to the website below & find out how to handle your financial life properly. You will learn how to pay off debts, live on a budget, save for emergencies, retirement, etc. It is possible. We use the plan outlined in "Total Money Makeover" (available on website & in most libraries & bookstores). We have paid off tons of debt. It has revolutionized our money & our marriage.

Btw, the FTC is all over those debt mgmt places. Most of them are scam artists & all of them are capable of trashing your credit even worse than it is.

Answer 2

You can negotiate each account you have yourself, just write to the debtor or the collection agency and ask for a settlement. You tell them the amount of your offer ex: $1,000 than offer $500 as they will not go less than 50 %. As they rather do this and get some of the money now, then run a risk of not getting any later.. However you have to be ready to negotiate, as usually they will try to get the most you can. It is wise to try at least 2 or 3 times and explain your financial situation. They can accept the 50 %, but is some cases it is going to be a little more. You have to tell them what you can do. Also keep copies of all letters and settlements to insure that they don't try to get more at a later time. Most of them will notify the credit bureau and when the credit bureau marks the account as paid you are much safer. Most debt collectors will do the right thing and some of them are as eager as you to close these types of matters. If they don't notify the credti burea, then you send them a copy of your final settlement and your score will improve. Remember that you have to ask them for a copy of the final settlement marking it is paid after you submit your money. You should be able to settle the $7,000 for about 3,500 up to about $3,800. Do not try to do all of them at the same time, you have to be realistic and deal with each accordingly. Start will the smaller ones and work your way up to the larger accounts. This will help you settle quickly and without a strain on your finances.

Answer 3

your best bet would be get all your bills together and do it your self. I was once told when paying off debts to start with the smallest amounts and pay them off first and then work on the big ones last or just send them $20 a month. because no matter what you pay off first your credit score will still go up the same. I hope this helps you in some way. All so you could take the money you were going to use to pay the debt places to help you put in to a savings acct and have the company's do automatic withdraw. give them a set amount like $20 a month that they can take out of the acct. every month.good luck

Answer 4

Pay off one at a time, starting with the lowest. Don't try to deal with a debt relief group. It's appear as a chapter 13 bankruptcy on your credit report. You can sometimes negotiate a lower payoff with the collection agency. Be firm and don't fall prey to their nasty tactics. Dont ever pay the outrageous fees that they tack onto your debts. Pay exactly what you owe, nothing more. Tackle one at a time. Good Luck. Check out Dave Ramsey on the radio or online daveramsey.com.

Answer 5

debt relief groups can not work with collection agencies because it is their job to keep your account from getting to a collection agency. you still might be able to get a loan with collection accounts but you would pay a high APR.

Answer 6

Try the below company