i have to arrange a payment plan with a collection agency on a $5300 debt, lowest $$$ amount ???

Question

what is the lowest monthly amount I should expect them to go? I am under undue hardship and really need to negociate the bare minimum monthly payment I can. But I am not sure is there is a certain dollar amount I can expect that they will not fall below. They have set me up for $100.00 a month. But considering the disaster the bany levy of $1800 has put my family in, I need that figure to be much closer to $50 a month, do I have any "rights" to speak of??? help

Answer 1

no you really dont. especially at that amount. the 100 is alreayd really low. its less then 20%. if you have gotten to the point of a collection agency then you have had plenty of time to start with the 50 a month.

Answer 2

Are they requiring you to pay the entire $5300, if so the $100 is a very good deal. Most agencies will not work out payment plans that go for more than a couple of years. So I seriously doubt you will be able to get them to $50 a month. However, your chances are improved depending on how old the debt is, there may even be cases where you don't need to pay it anymore.

Your rights include the following. First there is the Statute of Limitations. This is the period of time that a creditor can sue you for the money. Depending on your state this is 2-6 years from the date of the last Delinquency. If you are outside of the SOL they can no longer file a suit against you for the debt. The second period is the reporting period on your credit report. The negative item can not be reported if it is older than 7 years from the date of last delinquency.

So if you are outside of the SOL, but it is still reported on your credit report, your bargining power goes up and you may get them to take smaller payments. If you are past the 7 years you can basically tell them you are not going to pay it and there is nothing they can do. Just be carefull on this, because when you start to make payments, if you stop again before it is paid off both of these counters start over.

Answer 3

Before you agree to anything, find out whether or not they intend to charge you interest, and whether or not the balance includes interest.

Also realize that the statute of limitations on a debt runs from the last payment you made.

What I'd tell them is 1) you're willing to make payments on principal, but they're going to have to remove the interest from the debt, and 2) they aren't going to charge you interest forward, either.

If you start there, you might be able to negotiate reasonable interest. If you just agree to pay $50 per month on a $5300 debt, you're losing ground because the interest is over $80 per month.

Don't agree to pay anything without knowing the interest rate, and that has to be negotiable.

Answer 4

I feel your pain - have been there myself (heck, kinda still am there).
It's hard to say, every credit company/collection agency is different. Really try to call them and ask for help. I got my interest rates as low as 3% with payments anywhere from $74 to $150 a month depending on the debt amount.
Good luck! I know how hard this is.

Answer 5

First of all if you are agreeing to a payment plan in order to save or improve your credit stop right there. Paying a collection agency NEVER improves your credit. Never. A status of "paid" on a collection agency tradeline does not improve your credit score one bit. As awful as it sounds, only agree to pay a collection agency if you have it in writing that upon being paid in full they will remove their tradeline from your credit report. Otherwise you are doing nothing but reaging that debt--thus insuring that it stays on your credit report longer and brings your score down.

I know how it sounds for someone to say "Don't pay them" and I am by no means suggesting that you not take responsibility for your debts. What I am doing is merely telling you what is going to happen when you do. Please tread carefully and never pay a collection agency a dime without a written agreement from them to remove their tradeline upon payment. If they refuse to give it...well...then it is time to start waiting out that statute of limitations. Once that debt falls off your credit report you are in the clear.

Answer 6

you are able to furnish any volume. there is not any minimum or maximum etched in stone. I actual have helped purchasers negotiate settlements for truly some expenses over the years. reckoning on the sort of debt, the collectability from the customer and different issues enter in to the quantity i choose to advise be presented. For a shopper that gets income that can't be related jointly with social risk-free practices, i choose to advise a lesser volume. they won't garnish and carry jointly. usually i'd start up at approximately 35 to 40% of the internet stability. that must be the soundness devoid of any expenses extra like hobby. Negotation could be finished with the credit card lending economic business enterprise, or the sequence business business enterprise no remember if it truly is located with one. And, sure the furnish is generally no remember if it truly is paid by using the tip of that month. Do get affirmation of their attractiveness and do get affirmation that it truly is going to be got rid of out of your credit record only before paying. If $six hundred or extra is "forgiven" in a debt contract, you properly would get a 1099 exhibiting the forgiven volume as income, and you'd be to blame to pay taxes on that quantity once you fill out your tax return. contained while it comes to a credit card contract that became no longer became over to a sequence enterprise, the commerce line (reporting line) interior the credit bureau will study "settled for a lesser volume" truly than being removed from the credit report. reckoning on how lots you will save by using settling, evaluate this while making the alternative to pay in finished or to settle. in case you save in basic terms a pair of hundred money, it might income you to catch the account up, then resume money to strengthen the score. stable success.

Answer 7

$100 is really very low. Your payment has to cover more than just the interest or you'll never get it paid off.