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What should be my next step?

Discussion in 'Credit Talk' started by netrisca, Sep 16, 2011.

  1. Sep 16, 2011 #1
    netrisca

    netrisca New Member

    Hi all,

    I have been working hard on repairing my credit and since I was able to save up some cash I want to move things forward and pay a debt back. Currently, I have 3 outstanding issues on my report:

    1) A collection posted for credit card A
    2) A collection posted for credit card B
    3) A collection posted for credit card C

    Credit card A: I received a collection letter, replied back with DV and never heard back from the collection agency. On my report I only have one 'CO' (Derogatory) reported in Nov 2010, no further updates were made on that account.

    Credit card B: I received a collection letter, replied back with DV and never heard back from the collection agency. On my report I have 'CO' (Derogatory) reported in Nov 2010 and they keep updating it every month.

    Credit card C: never received a collection letter, just calls from the bank.On my report, it has been updated very month with 'CO' (Derogatory) since July 2010.

    My question is: I currently can only take care of either one of those accounts. When i save more bucks in the future, I plan on paying back the other ones as well. Which one should I go with first in your opinion? If A or B, should I contact the collection agency with a POD letter or should I contact the creditor directly? If C, should I just go to the bank and pay it off or should I POD?

    Thanks!
     
  3. Sep 16, 2011 #2
    debteye

    debteye Member

    Sometimes sending a DV letter can backfire. However, if I were in your shoes, I would send $$ to the agency with the greatest amount of savings. You have all the leverage. When you are speaking with them, let them know you have other accounts that needs to be paid back, and you will send funds to whoever offers the greatest settlement.

    And as always, ask them what they would be willing to settle at, let them offer first. When you make a counter-offer settlement, let them know you have funds TODAY. Collection agencies will be more willing to work with you if they know they have the chance of getting your money today, not next week.

    Also, make sure you get a written settlement agreement first before you send them $$!
     

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