@icloud987 wrote:
Thank you. Would you please share the process of settling? Did you get the agreement in writing first? Did you talk to them on the phone and ask them to send you the agreement in writing? Then you send out payments after you received the agreement letter? Did you use cashier checks? I am very anxious about doing it wrong and lose money, still owe the debt.
You meant settlement is better than bankruptcy ,right?
My debt was with Comenity bank. I called them and asked if there was an amount I could pay to settle the debt. They said yes and gave me the amount. I paid over the phone with a debit card and he immediately emailed me a letter stating the debt was paid and settled. The next month they reported a zero balance to the bureaus.
It's a good idea to get it in writing beforehand but each company has their own policy on how they handle it. Ask first if the payment settles the debt completely and will report as paid, settled with a zero balance. Also, I wouldn't use my debit card with collection agencies. Use a check for them. Keep in mind the original creditor may not give you a pay for delete but some collection agencies do, such as Portfolio Associates.
If you can't pay your debts and need to file bankruptcy, then there's no point in settling ANY of the debts. The sooner you file, the sooner you can begin to put it behind you and recover. Your score will rebound. 🙂
