What to do when you owe money and you get a letter saying the creditor will sue if payment isn't received?

Question

A legal office has sent me a letter regarding account delinquency from a creditor. Obviously, I know I must pay it, but I don't have the whole amount. Can I send them a partial payment? And then make payments? If I call them, do you think they will be willing to negotiate a payment plan? Or will I need to secure financing on my own from a bank or credit union and pay in full? Help! I dont know what to do.

Answer 1

I'm sure they will work with you if you are willing to make payments. However, collection agencies buy these debts at a fraction of the priciple amount. You can probably negotiate it down. If you owe $4,000.00 offer them 40% of the amount if you pay all at once. Then go on to tell them that you won't pay a DIME until you get a letter from them saying in writing that if you pay that 40% to settle the debt they will either remove the item from your credit report or report it as paid in full.

Answer 2

I would call and say you are having financial problems but want to pay but are unable to pay in full. What arrangements can be made? What can they do if they want their money? Offer payments and interest and then don't miss a payment if they accept the payments. I have no idea how much or what you have signed so it is difficult to offer advice. If you can get your own financing, that would solve your problem. Be sure they aren't socking you with huge late fees and interest due.

Answer 3

Call the original creditor and see if you can work out a payment plan.

Answer 4

They'd rather have your money than sue you, so they might be willing to take payments. But if you owe a large amount and want to just send them $20 or something, they probably won't - it would have to be a reasonable amount of what you owe.

You won't know until you call, so call them.

Good luck.