I own a credit card company over $1000 dollars, can I offer them payments?
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I lost my job, got sick and I make the mistake of not saving money. The debt is over 3 years old. I own them just over $1000 dollars. This is the only credit card that does not have sold this debt to an acquisitions company. All other (3) have. I am more stable and I want to start paying my debt in payments. Currently, I am paying close to $200 a month for medical bills. However, all of them would be gone in a mather of months: 1) a final $15 payment to a hospital is pay off 2) two moths on $30 for cardiologists 3)Got a Rx assistance program. my next medications would be reduced, savings over $60 dollars 4) all other medical bill would be pay off (assuming nothing major happens) in less than 5 months. My health care team have all say that I can get off the Rx and control by diet and exercise and have no long term damage. I have lost 1/6 of my weight so far (by going octo-vegetarian) My questions: 1) How low can I offer to pay them a month? should I start with $15,(This would be the amounts pay off to the hospital) or does it need to go higher? 2) What should they send me on writing? 3) mail them a check, pay with a debit card, or money order 4)What should I demand in order to better my credit (paying as agreed, settle in full, etc?) I have 3+ months of living expenses save up and going up. No kids. No pet. Thanks for reading my questions, I would thanks you in advance for your insight even if you do not know the answer to all questions. OH
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Answer:
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. Calling up the collection agency and getting on a payment plan will not do anything to fix your credit...if anything, you may trigger aggressive collection activity against yourself. Many collection agencies that deal with old defaulted credit card debt are extremely aggressive and nasty and if you call up they may view you as some sort of sap and they'll inflate the amount you owe to $3,000 and start calling you 10 times a day. Seriously, I would just sit tight and new renew contact with the collection agency. ------------- Ignore the advise below....you can't negotiate the removal of a charge-off from your credit report...it stays for 7 years...paid or unpaid. Also ignore the advise below about calling up and offering goodwill payments. Debt collectors don't do "goodwill." They're all about sucking the most money from your wallet as possible.
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Other answers
Call the company and offer them what u can. Most companies will take that as a goodwill effort. otherwise, u cud save up to 500.00 and offer them a settlement later. (that is if u don't mind the credit implications)
I agree with Cat,,, Leave ti alone,,, Do NOT contact anyone and offer to settle that debt until you have enough saved to send them a one time payment,
There are statute of limitations in most states. Depending on your state, I may hold off until year 4 because that's usually the time when statute of limitations expires for this type of debt. I'm not saying don't pay them, I am saying just wait. Continue to save and then offer them a lump sum payment. Just be sure YOUR DUCKS are in a row before you pay this debt. Credit Card debt is the least important debt. You need to keep up your medical and keep a roof over your head, and food in your tummy. Don't let these banks bully you, they are unsecured debts. The worse thing that can happen is they sue and get a judgment against you. Then you will be making payments anyways. So I would wait for them to make their move. Chances are they won't over $1000. 1. Never acknowledge the debt as a valid debt or SOL could reset on you. 2. Never send payment until you have the deal in writing. 3. Never allow them to draft a bank account. It's better to send a money order or certified check. Once they have your account and routing number they will go back on their word. That's why you need everything in writing. Here is a sample of a pay to delete letter. This is what you want to also send to get the negative account removed from your credit reports. Unlike what the one guy said, yes it can be removed before 7 years: Your Name Your Address Your City, State Zip Collector’s Name Collector’s Address Collector’s City, State Zip Date: Re: Account Number XXXX-XXXX-XXXX-XXXX Dear Collection Manager: This letter is in response to your [letter / call / credit report entry] on [date] related to the debt listed above. I wish to save us both some time and effort by settling this debt. Please be aware that this is not an acknowledgment or acceptance of the debt, as I have not received any verification of the debt. Nor is this a promise to pay and is not a payment agreement unless you provide a response as detailed below. I am aware that your company has the ability to report this debt to the credit bureaus as you deem necessary. Furthermore, you have the ability to change the listing since you are the information furnisher. I am willing to pay [this debt in full / $XXX as settlement for this debt] in return for your agreement to remove all information regarding this debt from the credit reporting agencies within ten calendar days of payment. If you agree to the terms, I will send certified payment in the amount of $XXX payable to [Collection Agency] in exchange to have all information related to this debt removed from all of my credit files. If you accept this offer, you also agree not to discuss the offer with any third-party, excluding the original creditor. If you accept the offer, please prepare a letter on your company letterhead agreeing to the terms. This letter should be signed by an authorized agent of [Collection Agency]. The letter will be treated as a contract and subject to the laws of my state. As granted by the Fair Debt Collection Practices Act, I have the right to dispute this alleged debt. If I do not receive your postmarked response within 15 days, I will withdraw the offer and request full verification of this debt. Please forward your agreement to the address listed above. Sincerely, Your Name
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