Debt in collections.Need advice?
kel5204 asked:
Ok I have 8000 in collections. Way over 180 days past due. I am concerned with my future and my credit report, in making a decision to resolve my problem. What will I benefit more. Settling for less than owed with the collections agency? Or, going into a consumer credit counseling debt management program?
Andre
Ok I have 8000 in collections. Way over 180 days past due. I am concerned with my future and my credit report, in making a decision to resolve my problem. What will I benefit more. Settling for less than owed with the collections agency? Or, going into a consumer credit counseling debt management program?
Andre
Shawn
First, a paid collection and unpaid collection are the same score on your report. By paying them it won’t make your credit score go up.
Second, most credit management places are a scam. Call your creditors and set up payment plans with them that you can afford. If they refuse your plan and it is resonable, just send them money.
Third, make sure to annually pull all 3 credit reports for free at .
Good luck.
Monica
DONT go to a credit counseling place. Those places are a scam and can look just as bad as a bankruptsy on your credit. Call up the collection agency and see if you can come to an agreement on monthly payments. You can work it out yourself with them, you dont need to pay some agency to do it for you.
Javier
Going to CCCS is looked at as almost going into bankruptcy is better to work out a payment arrangement with the collections dept
Billy
Not all of the credit services agencies are scams. I’m currently in a debt management program, through MMI/CCCS and I don’t regret it at all. My creditors are getting paid and I’m not getting harrassed by them at work and at home.
When I first enrolled earlier this year I had a total of roughly $17k in debt with several different creditors. I know I could have made arrangements with the creditors on my own. I chose not to because of work. I work 7-5 and don’t get home in time to call customer service. Couldn’t call from work because personal use of the company phone is grounds for immediate termination. If you must make a personal call you can only use your personal cell preferably from inside your car because they don’t want people hanging around outside the building talking on cell phones.
For credit counseling to set you up in a debt management program I think you need to be at least $10k in debt. You should be able to make a settlement arrangement with your creditor. Call to get it set up and then send them an agreement based on that conversation in writing.
Jonathan
A paid collection is WAY better than an unpaid collection. I have clients pay off a collection, update it immediately and have seen a 100 point increase just because of that. The best way is to make a chart of the amounts phone all the creditors and tell them what you are doing (I want to pay but am settling my collections based on savings you are offering me percentage wise.) Pay off one at a time. There is no point making payment plan arrangements for these debts, often they carry no interest and settling is the best method!
Angel
First a paid collection is no better on your credit report than an unpaid one so DO NOT just pay them off. The first thing you need to do is figure out if they are out of the Statute of Limitations in your state. Then you need to see if the collection agencies can validate the debt (prove it’s yours). Most don’t keep records good enough to validate and they have to delete it from your credit report if they can’t validate it. If it is yours and they can validate it then what you need to do is negotiate with them so that part of the deal is they will delete any entries form all 3 credit bureaus and they don’t get a cent until they agree.
Heidi
Settling will benefit you most though professionals can likely get you a better savings than you could yourself. I used for 1 of mine and got out for 38 cents on the dollar. Good luck to you.