I have several collections & charge-offs on my credit report. I am getting ready to have some money to hopefully pay off several of these. Today, I have contacted 5 or 6 of the companies by telephone. For one, I was told they would settle for almost half. Some of the creditors – mainly collection agencies or attorneys – say they cannot settle for one half. One said they would only take 10% off. I am really trying to get my credit straightened out but have had a difficult past 3 years – after having lost my family’s home to a fire in which we did not have enough insurance to cover our mortgage so now paying off a 2nd mortgage. Also due to lack of insurance on our home plus medical conditions & lack of work, it caused me to get behind on many bills. Your answers would be greatly appreciated. I am hoping to try to get debts paid off within the next week. Thanks so much!
My questions are: 1) Am I better off to go directly to the original creditor, even if with a collection agency or attorney now? 2) Is there a specific percentage these companies will ‘normally take off” if the bill is $5000 or if $500? 3) If I can negotiate an amount on my accounts to be paid off, what is the chance of getting the ‘charge off or collection” taken off of my credit report?
The AnswerIf you have a credit or debt question you’d like to ask just use the online form. I’m happy to help you totally for free. What Should I Expect When I Settle My Debts? - Tes by Steve Rhode