Help Needed

[jbee]

Hey guys,

I really need some direction on how to proceeed.  My husband was laid off and was out of work while I was on bedrest.  So, we defaulted on almost all of our credit cards, which are now in collections.   We did manage to keep our house, cars and paid the necessities (utilities,etc).  So, we're both working now but my credit has taking a HUGE hit (455), down from 670 before all of this happened.  I'm receiving the collection letters from the different companies but haven't responded because I'm too embarrassed to talk to them.  Should I just start sending small payments to them so they know that I'm trying to pay them off or would you call them and work something out??  I don't know if I should try and work out a deal with them and pay the lower amount they're offering or would that be considered a charge-off?  I don't know if it can do anymore damage than what's already done.  Any advice??  Thanks so much for your help

[RobertEG]

Making any payments can reset thet statute of limitations on the debt, and is usually not a good idea unless you have some clear agreement with the debt collector that they will do X in return, such as defer any civil action of not report their collection.

Reaching an agreement to pay less than the full amount is not considered a charge-off, and wont result in the reporting of a charge-off.

It will discharge the debt, and thus remove any issue of legal action, but wont in and of itself result in  improvment in your credit score.

However, you may be able to get concerssions from them, such as credit report deletion, by offering to pay.

Dealing with a collection requires first knowing its age, as defined by the date of your first delinquency on the account with the original creditor, and the statute of limitations in your state.  When did you first become delinquent on the various debts that are now in colleciton?

[jbee]

Thanks Robert,
Most of the dates are 11/2015. What if I'm unable to pay the full balances and can only do payments. Do you think they will still work with me?

[Anonymous]

Morning Thier,

Of course you can work out a payment plan. Call and explain the situaton. Payment plan is way better than just not attempting to pay them and fix your credit. Also if you would like to contact them in writing on this forum you will find letters to sent out and so forth. If you end up just calling then write times and dates include names of who you spoke with. Keep a record of everything and request any agreement to also be mailed you.

Let us know what happens. GOOD LUCK

[RonM21]

Yes, if they want to. Anything is possible. You don't know if you don't ask them. Don't be embarrassed. Life happens. Look at it this way, if you wait to get ahold of them because of that, your credit and situation can suffer more, and hurt you for a longer time vs possibly working it out and maybe even getting some deletions with a recovering score.