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How low can I convince a collection that is 7 months in collections

Established Contributor

How low can I convince a collection that is 7 months in collections

12:44 PM
It’s like 7 month in collections
Also what is the lowest amount my sis can try for a settlement payment they agreed 50% of the balance can we go even lower than this ?
Message 1 of 6
5 REPLIES
Moderator

Re: How low can I convince a collection that is 7 months in collections

If they offered 50% thats a good deal since they can still use the courts to sue to get it all. Doubtful they will go lower.

"If there's a lack of money in your life, understand that feeling worried, envious, jealous, disappointed, discouraged, doubtful or fearful about money can never bring more money to you, because those feelings come from a lack of gratitude for the money you have."

"Reactions are powerful creators because they contain every element needed to manifest—they're a combination of thought, belief, and feeling in action. Positive reactions create more positive things, and negative reactions create more negative things. If you can respond to negative situations calmly and lightly, instead of with emotional turbulence, what happens next in your life will be so much better."

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Message 2 of 6
Established Member

Re: How low can I convince a collection that is 7 months in collections

I've never had luck getting more than 50% for anything that new. I'd take it and run with it, or see if they'll do a payment plan.

Starting scores (08/01/2016): TU: 471, EX: 441, EQ: 409
Current FICO (10/13/2017): TU: 676, EX: 670, EQ: 680
Goals: TU: 750, EX: 750, EQ: 750
Message 3 of 6
Community Leader
Epic Contributor

Re: How low can I convince a collection that is 7 months in collections

In my opinion, I would consider a counter-offer that seeks their agreement not to report settled for less rather than seeking a lower % in your settlement offer.

 

Whatever % they agree to, if it involves acceptance of less than 100% of the debt, they have the option of additionally reporting the special comment of settled for less to the CRA.  That informs others that the debt was discharged for less than its full amount, which means the owner took a loss in having dealt with you.

That is never a favorable comment in any subsequent manual review of your credit report, as lendors dont like to extend credit if it will not be repaid in full.

 

I would counter with their offered settlement %, but add the provision that they agree not to report any referecne to settled for less to the CRA, which will then make your credit report appear the same as if you had paid the debt in full.

 

 

Message 4 of 6
Frequent Contributor

Re: How low can I convince a collection that is 7 months in collections

 


RobertEG wrote:

In my opinion, I would consider a counter-offer that seeks their agreement not to report settled for less rather than seeking a lower % in your settlement offer.

 

Whatever % they agree to, if it involves acceptance of less than 100% of the debt, they have the option of additionally reporting the special comment of settled for less to the CRA.  That informs others that the debt was discharged for less than its full amount, which means the owner took a loss in having dealt with you.

That is never a favorable comment in any subsequent manual review of your credit report, as lendors dont like to extend credit if it will not be repaid in full.

 

I would counter with their offered settlement %, but add the provision that they agree not to report any referecne to settled for less to the CRA, which will then make your credit report appear the same as if you had paid the debt in full.

 

 

Great advice RobertEG.

 

Message 5 of 6
Established Contributor

Re: How low can I convince a collection that is 7 months in collections

So my sis doesn’t care that the cards will stay Negative
She just doesn’t want to get her bank acoount be garnished she wants to have it on her name

She just did a settlement with Bofa collection they agreed for $3000 for $6700
But she does have a few more cards like capital one and Barclays and Citi with similar balances she just feels it might be a waste to pay them the settlement cash just because it might end up a judgment and than loose the bank acoount if it gets garnished ,
And we don’t know now what crediter will do a judgment in the long term ,
Should she wait and see if it ends up in judgments and than she can always call and offer to do a settlement or it’s a risk and just do it now ?
Message 6 of 6