My husband suffered an injury that resulted in us going without income for a year and me having to cut back significantly on work hours to take care of him.
Now all is well, he is recovered, and we are backing working again. During this time, I placed 2 credit cards with Freedom Debt Relief.
We feel we have gotten misleading information from them. One of the debts has gone to collections, and the other is still with the credit card company.
Both debts have been negotiated, and even with their fees, it is a significant saving from the original amount.
Our ultimate goal is to have any negative items removed from our credit report asap.
We have the funds to pay off both debts in full. However, we would only do that if it helped our credit report; otherwise, we would go through Freedom to pay less.
Is it unrealistic to hope that by contacting the credit card and collections agency and offering to pay all or most of the debt owing, that they would be willing or able to remove the collection/delinquent payment from our credit report?
Well, that is an interesting situation for sure.
I can only answer the question based on the information you shared. It seems as if you contracted with Freedom Debt Relief, they were able to obtain some settlements you were happy with, and now your credit score is a higher priority. Did I get that right?
The client agreement you sign when you hire nearly every debt relief company will have a clause in it about the credit report impact, tax consequences, etc. I would be shocked if that was not in your client agreement.
The moment your balance was above 30% of your credit limit, your debt to income ratio was rising, or you fell behind on payments, the credit score impact had begun.
It seems Freedom Debt Relief negotiated some excellent settlements, you are on the hook for the fee already, and rebuilding credit is incredibly easy. See this.
What you seem to be asking for a commonly called a “pay to delete.” There is no guarantee a creditor would do that. Not sure what the benefit is to them since there are some real consequences to doing that and fewer benefits.
Besides, I think the horse is out of the barn already. If you decide to pay the creditors back in full, you would still owe Freedom for the work they have already performed for you. So you’d wind up paying much more in the long run.
My advice would be to stick with Freedom, pay your settlements off and pay Freedom for the services you contracted for, and then focus on improving your credit ASAP.
The good news here is your husband has healed, and things are certainly looking up.
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