AM CONFUSED!!! DONT KNOW WHERE TO START! PLEASE HELP!

[Tuscani]

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Zen wrote:

I tried doing PFD on one account and the creditor turned, and did a settled for less than the amount. I don't trust PFD requests because creditors aren't required to honor it.

Paid collections can be as good. It shows you lived up to your responsibilities..and in every case on my credit report, my scores when UP when I paid. The most recent example is a paid collection to Allied Collections. Once it was reported paid, my score bumped seven points. That was a month ago.

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A collection is still a collection regardless if it is paid. You will never get the same points back when compared to the TL being deleted.

[PayYouNever]

Your scores definitely can go up. It's just a matter of working the angles as best as possible, and using your money as a stick to get the CAs and the OCs to make some concessions.

At the end of the day they want the money, and you want the debt paid WITHOUT a huge black eye. So the trick is finding the middle ground.

I would assume that a PFD works best if the settlement is between 85% to 100% of the original debt. Anything less and one is probably asking the CA and the OC to help you out, which doesn't seem to be part of their programming. You can always try for less, there is no harm and you can just come back with a different figure as a new counter-offer. It's all about negotiating, something that a lot of people aren't skilled at. Thankfully it's a skill that can be rapidly and readily learned.

[Anonymous]

I think that everyone pretty much gave you some good advice here.

I would address the judgements first.   If you haven't paid the judgements yet, check the laws in your state regarding judgement collection.  In some states, the person who won the judgement can ask the courts to garnish your wages (up to 25% of your net pay) until the judgement is satisfied.  Most states allow the courts to seize your bank accounts and other assets to satisfy the judgement.   DO EVERYTHING IN YOUR POWER TO PAY THE JUDGEMENTS.   If (or when) you have paid the judgements in full, send a request to vacate the judgements to the courts in which the lawsuits were filed.     

Then, I would address the medical collections.  The Statute of Limitations for a collector to sue you for the balance due is longer for medical collections than it is for credit cards because a medical collection is considered a "written contract".   Call the original creditors first to see if they will work with you.  If they won't work with you because the debt has been sold (they'll tell you which collection agency has the debt now), negotiate with the collection agency for a PFD (like the others have said) - get it in writing that they agree to the PFD!!   Like the others have said, in the short term, a paid collection account has the same impact as an unpaid collection account.

Finally, I would address the others.   Call the original creditors first to see if they will work with you.  Do the same thing with them as you would do with the medical bills.

I agree that having at least one line of credit will help you in the long run.  

[Anonymous]

Hi Zen,

I was reading your response to kellyt, can you explain to me what a pdf is. Thanks!

[Anonymous]

oops! What is a PFD. Anyone can tell me if you have the answer.

[Tuscani]

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Scorpio1 wrote:

oops! What is a PFD. Anyone can tell me if you have the answer.

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