Yanswersmonitorsarenazis
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Definitely, paying it all in one shot will get you the lowest negotiated payoff allowed.
They might tell you they can't remove it after paying it off, but they can. The credit card itself though, that payment history will remain.
With the stricter bankruptcy laws, collectors are getting tougher about negotiating. 3-5 years ago, it wasn't hard to get balances knocked down to 35%. Now, 50-60% is tough, but doable.
Don't even attempt to negotiate unless you have money to pay in full within the next day. Otherwise, they'll just push you around constantly. |
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boosta
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I think it will be better to pay it off in monthly payments to show that you have a history of good faith,As far as you negotiating payment they will definetely work with you if yo ask them i'll be more than willing to bet that they will take half of what you owe if you pay it in full.Good Luck |
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rshiffler2002
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You need to get all your finances in order. For this to have made it to collections you must be having problems. Make out a budget and see how much you can afford to pay them each month. Then get out of debt and don't get back in to it. |
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jhebert1974
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It depends on the company, if they will not remove it from your credit the best thing to do is go through a third party credit repair agency. I used Lexington Law Firm, in one year my credit score went from 502 to 698, I of course had more than one account in collection. You ran up the bills, you are responsible for them though, bite the bullet and pay them what you owe them and chalk it up to experience. |
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island3girl
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if you can pay it off, do it all at one time, but do not accept a "settlement offer" because it will go on your credit report as such and it looks worse than if you continued to make payments or pay the full amount. |
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Neka
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If you can pay it off in a lump sum you should do it. That way you avoid the collection and interest fees charged by the collection agency. |
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teamlessbear
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If you do not want it on your report, you need to pay in full.
This will go on your credit :if you tell them that you have $1200 to pay in one lump sum, if they call the total paid off, then one lump sum.
if you want to pay over time, you will pay closer to the amount you owe (3000)
Whatever you do, DO get everything you agree to in writing and do NOT lose this.
do NOT give them electronic access to your bank account(s) as no matter what you agreed to, they will clean them out up to the full (original) amount . |
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-FYOP- Ruler Of None -1111-
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As many have already said ... Do not accept a settlement. My credit was messed up for many many years because when I was young and naive I accepted a settlement to save $100. Do not let them talk you into more then you can afford. Stick to your guns. Remember whatever the first payment is that you make, they will expect that for every payment. So do not send a large amount up front.
Collection agents are taught to be aggressive and bullying. They will go for the kill if they sense any weakness in you. I know this for reason I won't go into. Trust me.
You control the negotiations not them. Just make sure you send them something, don't ignore them.
I know I already said it, but its worth repeating. Do not settle for a smaller amount, and only agree on a payment that will not put you in a deeper hole.
Good luck ! |
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hottotrot1_usa
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This is a classic business or personal finance decision: "lump sum payment or pay over time." Well, the answer depends on the interest rate that they charge. If they don't charge you interest, pay over time. Assuming that you have the discipline to make the payments on time. If they charge high interest, pay it all off now. Somewhere in between, it depends on what kind of interest you earn on savings and whether you have cash around for emergency needs. |
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jon
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A) Yes
B) No
Re A -I suggest you not pay it off fast --pay /mo for 6 or 11 months then start missing a payment then offer them a deal --at that point they will jump to take it--also offer the settlement in the last week of the month --before Christmas is the best --They are desperate to get money in then ! !
Now you have the opportunity to re-build your credit --Its a step by step process --use them as a reference
Be proud of it !
Be Blessed
Jon |
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californian
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You are correct in that they are more likely to reduce the amount of debt that you owe if you agree to pay right away or in one lump sum however now that this debt has made it to your credit report it will stay on there for 7 years. Regardless to it being paid or not.
So with that in mind...you make the choice...it all depends on you. Are you trying to buy a house or another big purchase within the next few months?
If your account is in collections and they have not reported it to the credit bureau yet than try to make monthly arraignments that fit within your budget. It's allot easier to make payments than it is to drop a lump sum and like I said before "It still remains on your credit report" |
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Etta P
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A lump sum can normally be reduced or in some way negotiated. The collection agency does not have to accept payments, but they might if it is a short term plan. If they agree to withdraw the account (not just show it paid) from your credit, you should get it in writing, because they dont usually do that. Keep your records also as these collections sometimes get sold multiply times to different companies representing the same initial creditor. Hope this helps! |
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susuze2000
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paying it off all at once is usually best as you will incur a lot less interest charges that way...however, if they offer you a settlement of say, $2000.00 and you pay them that, somehow the IRS counts that as income and you will have to pay taxes on all $2000.00...it is BS and i cant understand how they get away with it but they do, so just make sure it is not a settlement offer and you are good to go....good luck! |
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