BornToResist Posted November 30, 2006 Share Posted November 30, 2006 I don't know how to deal with collectors!! I need advice from someone who's been in over their head before. I FINALLY have the money to get out of debt (bad relationship sucked everything out of me, especially money) and I'm so confused as to how to handle collectors. My accounts are past due and in collections and I want to call them and get them taken care of, but how can I "bargain" with them...does anyone know? Any tips or advice is greatly appreciated. Link to comment Share on other sites More sharing options...
Day_Walker Posted November 30, 2006 Share Posted November 30, 2006 The most important thing to do is find out the statute of limitations in your state for debts owed. If the statute of limitations has run on your debts then as long as you have not expressed some desire to pay them then you are not responsible for the debt any longer. My suggestion would be to talk to a debt counselor before you start paying any of the debts off. Link to comment Share on other sites More sharing options...
Scout Posted November 30, 2006 Share Posted November 30, 2006 First, say a little prayer of thanks to the Universe right now that you've got the money to get out of debt! How I wish I was in your position. Ok, when you call the debt collector, start off by telling them that you realize you are way behind in payments and want to figure out how to work with them. And that's it. Sit back and let THEM make the offer of how. Sometimes, right off the bat they'll offer you either a really good payment plan or a significantly reduced sum total to just get the charge off their books. If the first offer they make isn't reasonable, just kind of hem and haw. Literally, "Hmmmm...not sure if I can swing that. I might have to call you back." THEY DON'T WANT TO GET YOU OFF THE PHONE AT ALMOST ANY COST. At that point, they will usually say, "Well, let me talk to my supervisor to see what we can work out." And then they usually come back with a better offer. Every now and then they won't. If you really feel it's something you can't afford or handle, then tell them you'll have to call back again. Usually, they'll call YOU back, with the offer closer to what you want. Link to comment Share on other sites More sharing options...
BornToResist Posted November 30, 2006 Author Share Posted November 30, 2006 I'm in CA too. It would take 7 years for it to be wiped off my credit, and that's not really what I want to do. What do debt councellors typically cost? Link to comment Share on other sites More sharing options...
Scout Posted November 30, 2006 Share Posted November 30, 2006 Some people may tell you differently, but in my opinion, a debt counselor isn't doing anything you can't do yourself: negotiate. Only, when you're doing the negotiating, do it the way I describe above. By letting the collector make the first offer, and if it's not workable, hem and haw until they offer you a second offer. Link to comment Share on other sites More sharing options...
BornToResist Posted November 30, 2006 Author Share Posted November 30, 2006 Wow thanks! I used to work in a collection's office too, you'd think I'd know more! I'm VERY happy to be able to pay off the debts, and am going to do so while I can! I got my little one on the way and want to be in a better position for us when that time rolls around. I used to have perfect credit, but was drained completely for a few years. *sigh* It's going to be sad to watch my fat bank account drain out, but it must be done. Thanks for the great advice. The one thing I do know is that considering it's the last day of the month, all collectors are trying to get accounts paid off so they can see their bonus checks for the month. They are usually more willing to take anything they can get...it's just the negotiating skills I lack. But that sounds like something I can do. Still any more tips are appreciated... Link to comment Share on other sites More sharing options...
Scout Posted November 30, 2006 Share Posted November 30, 2006 You're welcome. As for the sketchy credit issue...I used to have terrific credit, but it's pretty much shot at the moment, due to the struggles of launching my business. However, I notice the credit card offers keep coming anyway....and if I ever wanted to buy a house, it seems there are many programs now for people who have credit problems (albeit, many of these programs are terrible deals for the buy, so you have to really scrutinize for the legit ones). So don't panic at the idea your credit rating isn't as high as you'd like. You're in the same boat with millions of others. Link to comment Share on other sites More sharing options...
Day_Walker Posted November 30, 2006 Share Posted November 30, 2006 I'm in CA too. It would take 7 years for it to be wiped off my credit, and that's not really what I want to do. What do debt councellors typically cost? Actually that is not correct if the statute of limitations has run on your debt, then you have an affirmative defense to them trying to seek payment of the debt. When the collection agency accepts this then your credit report will say "debt settled". However it is important to find out what kind of debt you have to see what the particular statute of limitations is. You also must raise the SOL defense to the collection agency specifically or they can still obtain a judgement against you. I dont know what debt counselors cost but I would do research on the internet to find out the most information you can about your particular debt. Link to comment Share on other sites More sharing options...
renaissancewoman101 Posted November 30, 2006 Share Posted November 30, 2006 I think the statute of limitations on debts in CA is four years. Link to comment Share on other sites More sharing options...
Iceman26 Posted November 30, 2006 Share Posted November 30, 2006 I was in over my head, and I was able to get enough money together to settle with them. I just took a look at the debt, offered them a lump sum for half to less than half of what I owed. They always accepted it, because that is how they get paid. I owed one company 9000, offered them 3500 and they took it and wiped the slate clean. Make sure when you negotiate with them, that you tell them you want your credit report next to their respective tradeline to say "Paid in Full". That way your credit will improve quicker. If they mark "Paid Charge Off" than even though you are free and clear of debt, that bad history will haunt you for a while. Make sure that whatever route you go to have them put all the terms in writing and send them to you before you pay them anything. Good luck. Link to comment Share on other sites More sharing options...
Scout Posted November 30, 2006 Share Posted November 30, 2006 Good advice, Iceman! Link to comment Share on other sites More sharing options...
Iceman26 Posted November 30, 2006 Share Posted November 30, 2006 Good advice, Iceman! Thanks Scout, I try! Link to comment Share on other sites More sharing options...
Day_Walker Posted November 30, 2006 Share Posted November 30, 2006 I think the statute of limitations on debts in CA is four years. Yes however oral agreements have a SOL of 2 years, the rest are 4 years Link to comment Share on other sites More sharing options...
Dilly Posted November 30, 2006 Share Posted November 30, 2006 God, I owe like $30K now on CREDIT F-ING CARDS!!! There isn't much I wouldn't do to cut this in half. I am so so so so sick of always thinking I'll dig myself out this year. I think I'm an addicted consumer. GOD! I have never been late for a payment, but with a child on the way, I'm wondering if somehow, I could get out from under this giant burden. I just bought a house, too! And it's going to be VERY VERY TOUGH!!! I thought about selling my 401K but, that sounds really sad. Link to comment Share on other sites More sharing options...
BornToResist Posted November 30, 2006 Author Share Posted November 30, 2006 I FINALLY got through to the first one, and man, they are intimidating. They're telling me NO payment plans, they can only accept the full amount today, can they do that? I said that there's no way that I was going to pay off the full amount today and have been on hold while they talk to their supervisor for the past 5 minutes... Thanks for all the great advice guys! But I'm stumped about the payment plan thing... Link to comment Share on other sites More sharing options...
dpressedone89 Posted November 30, 2006 Share Posted November 30, 2006 what i did was i paid everyone i owed a little over a period of time. in my experience, as soon as they see a second payment they get the idea that your working on it, thats just how it worked for me and i wasnt in big debt just 2 k. good luck Link to comment Share on other sites More sharing options...
BornToResist Posted November 30, 2006 Author Share Posted November 30, 2006 The cheapest they would go was 20% off which was good...but they still refuse to take payment plans. They let me get off the phone and everything. Link to comment Share on other sites More sharing options...
Day_Walker Posted November 30, 2006 Share Posted November 30, 2006 The cheapest they would go was 20% off which was good...but they still refuse to take payment plans. They let me get off the phone and everything. You dont ask them what they are going to let you pay. You say that you are going to pay this amount. I still believe that you want to look at the SOL for the debts you owed. The more information you have the better you will be at bargaining. Link to comment Share on other sites More sharing options...
Dilly Posted November 30, 2006 Share Posted November 30, 2006 I may dumb, but what is the statute of limitations for a particular credit card? I mean, is it the amount of time that a company can expect you to pay on something? ANd to begin negotiating, do you technically have to be late? Link to comment Share on other sites More sharing options...
musicguy Posted November 30, 2006 Share Posted November 30, 2006 I need to pay off my debts A LOT and I have a crappy job that doesn't pay much Link to comment Share on other sites More sharing options...
Scout Posted November 30, 2006 Share Posted November 30, 2006 The cheapest they would go was 20% off which was good...but they still refuse to take payment plans. They let me get off the phone and everything. They'll call back. Or, call them back in a week and ask if they've changed their mind, because you'd really like to start paying down your debt while you have some cash on hand. OR...if they're not the actual company you owe money to but instead are a debt collection agency, call the company themselves and see if they will work out a payment plan and explain the debt collection company is refusing to do this. Bottom line, they'd rather have some money than none at all. They ALWAYS play hardball at first. I've even had collectors leave messages on my voice mail saying, "This is Investigator So and So..." as a scare tactic. Uh huh, they're really an investigator. They're just a glorified phone rep. Link to comment Share on other sites More sharing options...
BornToResist Posted November 30, 2006 Author Share Posted November 30, 2006 They'll call back. Or, call them back in a week and ask if they've changed their mind. OR...if they're not the actual company you owe money to but instead are a debt collection agency, call the company themselves and see if they will work out a payment plan and explain the debt collection company is refusing to do this. Bottom line, they'd rather have some money than none at all. That's what I figured. SO I sucked it up and called them back. I firmly told them that I would pay them so-and-so amount for a certain amount of months, and she jumped all over it. One down...making progress here, people!! She said that my credit would say "Settlement in Full"...how is that going to affect me? They took 25% off (go me!) so she wouldn't say "Paid in Full" but I think if that affects my credit slightly, it will be worth the money. Any ideas? Link to comment Share on other sites More sharing options...
Scout Posted November 30, 2006 Share Posted November 30, 2006 I don't have advice about that...someone else might. But...way to go on negotiating, BTR! You're kicking tail there. Link to comment Share on other sites More sharing options...
BornToResist Posted November 30, 2006 Author Share Posted November 30, 2006 I may dumb, but what is the statute of limitations for a particular credit card? I mean, is it the amount of time that a company can expect you to pay on something? ANd to begin negotiating, do you technically have to be late? I think the limitations are by state. But once again, I don't know, Day Walker seems to be the one with a clue. I don't know if you have to be late or not, but it would only make sense. If you are consistenly paying it off, then they aren't nervous about getting their money back...but once you're late (like me!) they go for whatever they can get. Maybe it's different if you call and want to pay off the full balance...? I don't know. And thanks Scout!! They're scary at first, but I guess that's why they do what they do! When I worked at the collection agency (I was just the operator) the collectors were all a bunch of dorks who really didn't have any power at all. I just know they scrambled at "month end." They would use ALL KINDS of tactics to get their money, it was unbelievable. One pretended to be Domino's so he could get their address. Link to comment Share on other sites More sharing options...
Day_Walker Posted November 30, 2006 Share Posted November 30, 2006 I may dumb, but what is the statute of limitations for a particular credit card? I mean, is it the amount of time that a company can expect you to pay on something? ANd to begin negotiating, do you technically have to be late? It is 4 years from your last payment typically and if it has been over 4 years then you dont have to pay. Typically you have to tell the collection agency that you asserting the defense of the statute of limitations. I would suggest amounts far less than 25% I would try amounts at about a 1/3 of what you actually owe them and work your way up. Link to comment Share on other sites More sharing options...
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