KITTIES! *GASP* MORE KITTIES!!
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With this you may have to have a bit of backbone and really just let them know you can pay $3,500 or nothing. If you had the $5,700 you'd pay it. If they won't except the $3,500 then I would file chapter 11. You might want to also mention to the credit card company that your very close to filing chapter 11, in which case the $13,000 would never be paid. Tell them you lost your job and your willing to pay what you can when you can.
You should also look into getting a better credit card. Capital One offers a credit card where if you lose your job or become disabled for more then a year, they will pay your balance, as long as it doesn't excede $5,000 for a year. It's the one I use and have used since I was eighteen |
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**Proud to be an American**
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Sounds like a bargain to me. That's better than 1/2 of the debt gone - wiped away. Why hesitate? |
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SlimMick
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Offer $4K....
It is VERY IMPORTANT that you get a written agreement from them stating that they will accept this amount as payment in full...Get this PRIOR to paying them. NEVER accept verbal promises from debt collectors regarding settlements...If you do, they'll start hounding you for the remaining balance once they get your money and deny that any settlement was ever made.
Never give debt collectors your checking account # to pay...Pay only via USPS money orders. |
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Scott C
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Don't work with debt collectors. If this debt is already in collection, it's already going to be on your credit report for years whether you pay it or not. And if you don't pay it now, they aren't going to say "sorry, the deal expired". I still have a collector from 12 years ago sending me mail that they will accept half my debt if I pay now. Well the statute of limitations expired 9 years ago so legally I'm not bound to pay the debt and it cannot be on my credit report because it was so long ago. BUT BEWARE, some states have statutes that if you make ANY payment to an account, the statute of limitations is reset. The company can do it in their home state, or yours, whichever benefits them the most.
For example, in Arkansas, a partial payment stops the statute...
Here is a link to every state's laws. You should know your own state's limiations, and the creditor's state's laws as they can choose which to apply.
http://www.fair-debt-collection.com/statue-limitations.html
If you want the best help to deal with your finances, you should have done something long ago, but it is what it is.
CCCS is one non profit that helps people get rid of debt. I had a positive experience with them, you do not pay them, way back when I believe I paid a $4 fee a month for them to send payments to my creditors. There were no other fees and there shouldn't be other than reasonable mailing fees.
Below is one link, but search for consumer credit counseling service.
http://www.cccsatl.org/
You go there with all your bills and debts and a counselor will work out a budget with you. They will contact all your creditors and arrange payment plans, sometimes lower interest rates etc. You make one payment to CCCS and they send checks to your creditors. Be wary of others, use a non profit such as CCCS and do your homework to make sure you are dealing with reputable people and don't bother with others promising debt relief. Once a group such as CCCS is involved your creditors know you are working to pay your debt.
Bottom line, I would contact CCCS and have them contact these people and go from there and you won't have to talk with a bill collector again, let them do the talking at CCCS.
Good luck! |
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pokemom352
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Be advised dear, that though they offered to accept the $5700. You will have to pay taxes on the balance of what you owe which should be approx 7300.. Once paid they will report it to IRS and send you a form to add to your 1040 |
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Bonnie S
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Go to a financial planner and ask them to help you. They will talk directly with the credit card company and come up with a plan. Many planners are available free through the government to help people that are in your situation. |
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Scanner
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Ehh not too bad. But check your other answerers. You could offer them something in between and see if they will take it. Another option is to send them a check for what you have, like $4800 let's say, and put it in a letter and say that this is all you have will you accept this to settle the debt? May or may not work. Cash in hand for the company is better than birds in the bush. Of course I'm assuming that the amount of money you send is all you have. I can't tell you to be fraudulent. |
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Kioko
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They are offering you a settlement. This will show on your credit report as a paid settlement, slightly better than a charge-off and much better than a judgment. $5700 is very good, considering most companies won't offer more than 50% off. You could try to counter offer, say $5000. If that fails take advantage of the fact they are willing to settle so low. This will still be a negative on your credit, though not as bad as if you didn't pay. You could also offer to pay the $5700 if they will confirm in writing they will not report it as a settlement and just as a paid account on your credit report. |
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Josh M
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Scott C. Is your best answer, would like to add to his answer a little bit though. He is right by saying once a collection always a collection whether you pay it or not does not help your score to show it as paid as much as you would think. He is also right that if you send in a payment the time limit will reset for it to fall off of your credit report. However what creditors will do to prevent this from ever going away is sell your debt to other collection agencies and when they do that guess what that 7 year period starts all over again under another name so to the untrained eye it looks like another defaulted account on your credit report. The only real benefit to negotiating a payment plan or settlement is the creditor will be less likely to keep reporting this debt after so many years if it is showed as payed. |
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I'am God's Girl
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Pay the 5700 if you have it. |
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tobysmom0717
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take them up on their offer if you can afford to do it |
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irelyon
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statute of limitations on a debt with no actvity is four years. After 7 years you can have it removed from your credit report.
If it is an old debt, tell them that if they don't take your offer chances are they won't see a dime... Tell them that at that time your life when the debt was incurred you were on drugs or alcohol and that you were not a "capable man" to enter into any contract...
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Mojo J
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NEVER EVER pay a low life bill collector. |
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pagodaboy2001
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That is a great settlement amount. I would take the offer to get them off your back. If you do take this be sure to get it in writing before you pay and pay with a money order, or something that doesn't have your account information. |
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Lisa A
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You should pay them everything that you owe them. That is the only fair, moral thing to do. You knew what you were doing when you spent the money. You knew that you would have to pay it back. Nobody had a gun to your head forcing you to make those purchases. So please don't make the rest of us pay for your purchases. Because that's what happens when you don't pay your debts. The company raises prices for the rest of us, and makes us pay your debts.
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Kristina F
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Just tell them you don't have that kind of money right now. If you can't make any kind of money to make payment arrangements with them. I would claim bankruptcy. |
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