I just spoke with my credit collectors and they asked when I plan to pay off my Debt of $2423(was $800 before I stopped paying). Well I said I was saving money to try to get up 33% ($799) To make a settlement offer to them. He said they would probably accept an offer of $850 (35%). Well I told him I would call him back. I have about $1000 to pay off this debt today. My question is, what do I need to negotiate to have them put on my credit report? Can I negotiate with them to get them to put paid in full on my account? I need some negotiation help here!!!! Please let me know what I need to do so I can get this settled today. They are calling me back this evening. All help will be greatly appreciated since me and my fiancée are looking to buy a house soon!!! My current credit score is 490. ( this is the only mark on there). I am 24 years old.
Who is reporting? The collection agency or the original creditor? If this was $800 and has jumped to $2400, sounds like its a pretty old debt - especially since they are willing to take a low settlement. I'm not trying to offend, but that's an awfully low score for one negative, unless maybe you don't have any good accounts (you are just a youngster!) or whomever is reporting the negative is reaging. BTW - Paying it off, without having it deleted will not help your score, and could hurt your score even worse. Who says you have to settle today?
You could send them a certified letter return receipt (CMRRR) and tell them you'll settle for a lesser amount, such as $500. They'll send something back stating they will/won't accept. Make ALL correspondence through letters, verbal agreements don't mean squat. If they DO accept, then fire off a letter stating that they cannot resell the debt and try to negotiate a deletion from your credit records. If not, at least "pay as agreed". Hvae them sign it, then when you get it back, send your payment bank check or money order, NO PERSONAL CHECKS.
I agree with jlynn. Who says you have to pay today? They do? Wrong--tomorrow they'll tell you the same thing. The first thing you need to do is ask them to prove the amount. How much is principle, how much interest, when was it added and when? You want a total accouting of how they arrived at the balance. Have you had them actually validate that the debt is yours, especially since the amount is a lot more than you think it should be? Don't be so quick to pay (or even OFFER to pay). Especially IN WRITING. In at least some states, that resets the SOL and you're starting all over again. And jlynn is right about the scores. Paying may make them lower, not higher. Be careful here.
What about complete settlement, which I think is what he is referring to? Reason I said what I did is because I made a ridicously low offer for settlement and they bit. Got it in writing and its basically done with.
