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Paying Off Creditors with Lump Sums



Dave Ryan

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Sub: Paying Off Creditors with Lump Sums
Tue, 13/07/2010 16:46

Ok, I recently got my credit reports from all three credit bureaus, and they're showing that I'm in default by approx. $4,000. I was careless and neglectful for a few years, and I want to pay off everything and start bringing up my credit score. I'll be dealing with 7 or 8 different creditors. But I need some tips before I begin.

Here's my situation: I've set aside $2,500 that I hope will pay off everything. I don't want to have to make monthly payments. I just want to get this all behind me and start over. Can I reasonably expect to be able to offer a smaller, lump sum to each creditor and have them mark the account as paid? For example, if I owe $800 to Widgets, Inc, I offer to give them a one-time payment of $400. Do they usually allow this kind of negotiation? If so, should I make the first offer, or wait and see what they offer?

By the way, we're talking about debts that are two to three years old.

Any advice will be helpful. Thanks!



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Debt Samaritan
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Sub: #1 Not all debts are bought....in fact some debts are never sold. Tue, 07/13/2010 - 16:46



Not all debts are bought....in fact some debts are never sold. Utilities are not sold debts, just assigned to a collectiion agency. She probably wasnt lying. Quite frankly, this one may end up hurting you more and is one that should be resolved.

How to Deal with Illegal Loans..OhioGal's Primer
http://www.debtconsolidationcare.com...allenders.html
PDL's are ILLEGAL in the following states...
AR, AZ, CT, GA, ME, MD, MA, NJ, NY, NC, PA, VT AND DC
OH AND NH have very restrictive low cost interest rate laws.

SOL for all states
http://www.debtconsolidationcare.com...imitation.html


Dave Ryan
Dave Ryan
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Credits: 170.15 Send message to Dave Ryan

Sub: #2 Thanks for all the advice! I made my first call today, to a colTue, 07/13/2010 - 15:44



Thanks for all the advice! I made my first call today, to a collection agency for a utility company I used to deal with. I made a settlement offer, but they replied that the utility company doesn't accept settlements. What's up with that? I thought the collectors buy bad debts on the cheap, and are in a position to allow negotiation.

I did take into account that she could have been lying to me. So I told her that that I had a lot of creditors to pay, and that I would have no choice other than to file bankruptcy if my creditors don't work with me. She still didn't budge, so I hung up.


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Debt Samaritan
Posts: 17110
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Sub: #3 Dont bother with offers thru the mail....they take too long and Mon, 07/12/2010 - 03:42



Dont bother with offers thru the mail....they take too long and most will not be responded too. Call and negotiate your settlements. Then have them fax you a settlement agreement. Best time to call the CA's is the last week in of the month....collectors are looking to hit their goals.

How to Deal with Illegal Loans..OhioGal's Primer
http://www.debtconsolidationcare.com...allenders.html
PDL's are ILLEGAL in the following states...
AR, AZ, CT, GA, ME, MD, MA, NJ, NY, NC, PA, VT AND DC
OH AND NH have very restrictive low cost interest rate laws.

SOL for all states
http://www.debtconsolidationcare.com...imitation.html


lisawhite9
lisawhite9
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Credits: 1675.45 Send message to lisawhite9

Sub: #4 Hi Dave, Quote:Do they usually allow this kind of negotiation?Mon, 07/12/2010 - 03:03



Hi Dave,

Quote:
Do they usually allow this kind of negotiation?
Yes, creditors, and collection agencies allow such kind of negotiations. How much they will settle for depends on the creditor or collection agency. Generally speaking debt settlement lowers the outstanding debt amount by 40-60%.

Quote:

If so, should I make the first offer, or wait and see what they offer?
Yes, you can send your creditors, and collection agencies settlement letter through certified mail, requesting a return receipt.

Whatever may you settle for, do remember to get the settlement agreements in writing. You can also request the creditors, and colelction agencies to agree to a "Pay for delete" (PFD) agreement. If they agree to PFD, all the negatives will be removed from your credit report. However, not all creditors and collection agencies agree to PFD.

Thanks


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Debt Samaritan
Posts: 17110
Credits: 377723.78840875 Send message to SOAPLADY

Sub: #5 Settling happens all the time....search and read the forum to fiSat, 07/10/2010 - 17:08



Settling happens all the time....search and read the forum to find out how much or how little your creditors or their collection agencies are settling for. Always get your settlement agreement in writing prior to paying...No agreement, no money.

How to Deal with Illegal Loans..OhioGal's Primer
http://www.debtconsolidationcare.com...allenders.html
PDL's are ILLEGAL in the following states...
AR, AZ, CT, GA, ME, MD, MA, NJ, NY, NC, PA, VT AND DC
OH AND NH have very restrictive low cost interest rate laws.

SOL for all states
http://www.debtconsolidationcare.com...imitation.html


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