Hi all. I'm trying to help my boyfriend figure out how to deal with some delinquent debt. It's about $2500 from a credit card. It has been "assigned" to a collection agency. They've sent him notices, and this one says he has 30 days to dispute the validity of the debt, etc. (30 days will be up on Oct. 24) My question is... should he try to negotiate with the collection agency or deal with the original credit card company? I read Marie's hall of fame post about "never deal with a collection agency" but this is not zombie debt, it's over 6 months old but not past the statute of limitations, I believe. So... since it has been "assigned" to an agency, does that mean it hasn't been bought and he can still call the credit card co.? I saw some bank website that said you can try to settle with the agency... and others say if you contact the original creditor they might lower your interest or fees or whatever. What's the best way to proceed? Should I bother with making them validate the debt if I know it's valid? Right now he can only afford to give them about 30 a month, but in December the situation will get a lot better. In other words, he can't offer them a big amount and settle it once and for all. As far as repairing credit.. I know about secured cards and becoming an authorized signer on someone else's account... anything else we should do? He got some student loans through a credit union and was able to sign up for savings and checking account (he'd been turned down for a checking account before). If he keeps these accounts in good standing, will that help out with his credit? (I know it's basically shot to hell right now.) Live and learn. Thanks for any help you can offer!!
Validate the debt and do it quickly. Sent it CRRR. It will buy you another 30 days to see what they come up with.
