My fiance is getting calls from creditors daily..??

Question

He owes approximately between $5,000-$10,000 to debt collectors. Even though we both make fairly decent wages, we definitely don't have enough money to pay it all back at once. Besides calling everyday, what will their next step be? He has nothing under his name, both of our vehicles are under my name as I have good credit. What would you recommend doing to solve this? Are debt collectors usually willing to work out some sort of payment plan? Thanks a lot!

Answer 1

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Answer 2

I agree with those who suggest working out a settlement. Just be sure everything is put into writing. Debt collectors are ruthless and get paid a commission on what they collect, so they will tell you ANYTHING to collect that debt. Now it is not legal for them to threaten, harrass, or lie, but they do.

I don't like credit repair companies. I saw how those worked when employed with a bank. They try to get the creditors to settle or accept a lower payment plan, and they ask you to make a "donation" to them each month in return for their services. All something that you can do on your own and not have to pay another person to do it for you. Again, get everything in writing.

Once something goes to collections, the original creditor will not be helpful. We had issues with medical bills when I delivered my son last year, because the insurance company made a mistake when they entered his birthday, so they declined everything submitted for his birth and well care. It took the insurance company NINE MONTHS to correct his birthdate. In the meantime the hospital turned it over to collections even though I was trying to work out arrangements and made them aware of the issue. I now have to deal with debt collectors to refile the insurance. So not only have I had THAT headache, I now have to submit a letter to the credit reporting agencies explaining the issue so new creditors will see that the insurance company caused the problem. Forget calling the original creditors ... I know from experience it will do no good.

I think the suggestion to put off marriage until these debts can be resolved is a good idea. Many creditors will settle for pennies on the dollar, so work out the best arrangement possible, pay them off, then work on slowly repairing his credit. I think it takes 7-10 years to get negative info off your credit report, so it won't be an overnight process.

Answer 3

Try to call the debt collectors and work out a payment plan that is payable. Also, look up the Fair Debt Collection Act, in this you will find information one what a collector can legal do, how often they can call.
Also, be careful if a collector says that they will settle for half of what you owe. If you owe $10k and they accept hafl, $5k is considered income and will be reported to the IRS. The collector will send you a form 1099 to both you and the IRS.

Answer 4

Lets take this one step at a time. First question is how old are the debts? In most states the statute of limitations are between 4-5 years, on things like credit cards, phone bills etc. If it is past that then let them know that the SOL has been surpassed. Next if you are tired of the phone calls, let them know that you will only respond to and receive things in writing, by law they must abide by that. Now that things are either SOL or in writing, see if they will accept less than what is owed with the condition, and this must be in writing, that upon payment of said amount due that they will withing 30 days have this removed from your credit rating. (If it is beyond the SOL would not bother, this is if they threaten to, or actually bring you to court this will have the case thrown out)

Answer 5

Yes there are several credit reduction programs availible I used credit Alliance and within 4 years (having about the same debt) I am now debt free and they stop them from calliing you all the time. Sorry I dont have the number but you should be able to find something is you go under goog or yahoo and type if in credit reduction it should give you a list. There are several credible agencies availible.

Answer 6

Welcome to my world.
You could look into filing bankruptcy , but that's not a recommendation. The best plan to get them off your back is to set up a payment plan. Even if it's a small amount that you can pay monthly , at least it shows an effort. If they are calling him at work he needs to tell them that is unacceptable and grounds for harassment. If it's the home phone then you could tell them to quit calling since it is an interruption to you , further calls will be forwarded to the Better Business Bureau.
What is the most annoying are the automated lengthy messages , they never give up.
Also if the phone is in your name , they have no right to be contacting you anyway.

Answer 7

Not sure what the next step on the creditors part will be, but, You should never charge more than you can pay at the end of the month. I would imagine that as long as you pay the minimum payments per month you will be ok, just never ahead of the game.
I would avoid credit consolidation services that will lower your payments.....it extends your period at higher interest usually.

Answer 8

Forget about the debt collectors. They only work on behalf of the creditor. Who is the creditor? Go to them and work out a deal.

Answer 9

Since his credit is already trashed save up some money (about 60% of what he owes) and then settle with them. Like, say "What will it take to settle this debt" and this will start the negotiations. Also, pull his credit reports from ALL 3 major credit reporting agencies so you know excatly who you are dealing with and at what amounts. Good luck.

Answer 10

Until you find a way to resolve the issue, when the creditor phones ask them if they are familiar with "fdcpa" this will stop the calls, however they are still able to contact you by mail.