What % of my debts they will settle for? Lets say I have a $5,000 debt... will they settle for a payment of $2500 to satisfy this debt??
2007-04-15 17:04:06 · 6 answers · asked by Anonymous in Business & Finance ➔ Credit
The debt is almost 12 months old with my original creditor.. and it was turned over to collections NOV 2006.
2007-04-15 17:18:52 · update #1
First not all CAs buy debts, some are hired as agents of the creditor. Usually debts are sold when the creditor reasonably believes the debt to be uncollectable and they charge it off as a loss. There are companies that do buy and sell debts and these are the worst of the worst. Because your debt is an investment to them they can be ferocious about collecting. The advantage for you is that they are more willing to negotiate a settlement rather than having to re-sell the debt to another company for even less than what they bought it for. It never hurts to simply ask. Start with 40% and see what they say. A lot depends on the age of the debt too. A four year old debt has a much better shot at settlement than a fresh one.
2007-04-15 17:20:28 · answer #1 · answered by douglas l 5 · 0⤊ 0⤋
I did some minor research when I was consulting a collection agency a while back. From my recollection, they analyze the percentage of debt obtainable by the age of recency of the collection. The more recent the collection is, the easier it is for them to obtain the whole amount. The older the collection is, the less likely they are to collect debt (obviously).
Also, if your collection is older than 3.5 years, don't bother to pay it off. What will happen is that the account is probably inactive on your credit history. Meaning, it has 3.5 more years left before it drops off (as long as the collection isn't sold and reinstated). Now if you pay it off, you will RE-ACTIVATE the delinquency and make it current, dropping your credit score. Your credit score is heavily based on your recent 24 months.
2007-04-16 00:14:21 · answer #2 · answered by Mortgage Advisor 1 · 0⤊ 0⤋
Most credit card companies will settle at 50%, but that is usually a one time offer and they expect SIF promptly. Which will reflect on your credit as SIF. Not quite as good as PIF, but it's better than an unpaid collection.
Some medical bills will settle at varying degrees. I've seen some settle as low as 50% and others that would not go below 80%.
Generally the smaller the business the less likely they are to settle.
2007-04-16 00:40:06 · answer #3 · answered by Cindy 3 · 0⤊ 0⤋
Do not settle or make any payments unless they agree to remove the debt from your credit reports. If they agree in writing, make an offer and pay. If they do not agree or say they will remove the negative entry from your credit reports, but will not put it in writing, leave it alone.
The damage is done to your credit report. If you pay now, the 7 year clock will start over and your credit score will drop further.
2007-04-16 00:30:00 · answer #4 · answered by Matt 4 · 0⤊ 0⤋
It depends on how long you have been delinquent and what each company is willing to settle for.
You would need to contact the company directly to find out if they have a settlement offer.
2007-04-16 00:10:32 · answer #5 · answered by Rosanna 4 · 0⤊ 0⤋
derrogatory ?
YOU CURSE EM?
2007-04-16 00:06:23 · answer #6 · answered by cork 7 · 0⤊ 1⤋