Im trying to pay off my credit cards that have been claimed "Profit and loss" with the original creditor and have been given to a agency to collect. What are some good tips to negotiate with the 3rd party agency?
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It is better to seek help from any reputed debt settlement company. Such companies may be able to help you save more money than doing it yourself while protecting you from the harsh impacts of bankruptcy. I took help of freedom debt relief to settle my debts. I have joined their debt settlement program one year back and almost debt free now.
Hold on before you cut any checks: Paying back a defaulted/charged-off credit card will not restore your credit rating..Your credit report will be updated to a "Paid Charge-Off," which, while slightly better, is still a seriously derogatory item. Per the Fair Credit Reporting Act, a charge-off, whether paid, settled for less or not paid at all, will remain on a consumer’s credit reports for up to 7 years….so you’ll be stuck with damaged credit regardless of what you do. Strangely enough, you can end up damaging your credit score as you’re bringing a negative event to the front of the line if your credit history.
There are 2 reasons why you may want to pay back a charge off: 1) You are applying for a new mortgage, loan or apartment and the creditor is insisting that all defaulted items be paid off. 2) There is a confirmed lawsuit pending on the debt. Otherwise, just sit tight and do nothing…you’re credit rating will be the same anyway.
- Renewing contact with debt collectors out of the blue for old charged-off debt can stir up more trouble than it’s worth. Your effort to could be met with threatening, abusive collection calls…threats of lawsuits…and once they find out that you are willing to pay they will probably add on all sorts of fees and they’ll come after you for two or even three times the original amount of debt.
Never under any circumstances give them access to take money out of your account. They will empty in completely. Pay all bills with a cashiers check or money order.
Pay nothing until they put the agreement in writing, and mail something you. Then make sure you keep the letter forever. Also be sure you do everything required of you in the agreement.
Get EVERYTHING in writing before paying anything….It will at least show that you have satisfied the lien if you need it in the near future to prove it is PAID IN FULL…..Also plan to start negotiatiing at 50% and take it as low as they’ll go on any 3rd party discussions…I got one paid at 40% and another at 35% of the total debt in the past month..do not feel guilty either.If you’re situation is anything like mine,you only actually owe about half of what theyre trying to cyphen out of you anyway.After they see your not gonna pay they will charge and charge these ridiculous fees and late penalties for the very reason we’re talking about.They know that one day if you try and negotiate with them.They’d much rather have 35-50% of $20k that 35-50% of $10k.the more they can say you owe the more they can settle for……
Do not negotiate by telephone. Communicate with a collection agency only in writing. Save copies of all correspondence. If you talk to a collection agency on the telephone, then they might say that you agreed to do something that you did not agree to do. So only deal with them by mail, not on the phone.
You just need to be oriented on debt management and be offered with debt consolidation procedures for your credit card. Try moneyhighstreet.com. They offer low interest rates and longer payment periods for clients like you.
I agree with the other answers. However, if you are going to negotiate with a third party agency, do not acknowledge that you owe any debt either in writing or over the phone. Do communicate only in writing unless it is absolutely necessary for you to make contact via telephone.
If you are willing to "settle" your debt for whatever it is that you owe, you may want to pay the debt (at face value, unless you are skilled at cutting the debt in half—-third party collection agencies pay about 25 to 30 cents on the dollar for charged off accounts—so they can still make money at 50%) and only agree to pay it if they will remove the entire negative item from your credit report. It takes some skill at negotiating—but it can be done. Just make sure you do not acknowledge any debt until you get something in writing that they agree to do this, this and this.
Good luck!
Around 600 million pounds has been been paid off in personal debt which has helped to reduce the nations 1 trillion borrowing on credit cards and loans. Individuals may have turned to seeking debt management help and ways to get out of debt or it may be down to the fact that low interest rates have allowed homeowners to save on their mortgage which they have then ploughed back into reducing their debts.