what to offer? Pay to delete

[DoctorCat]

So there is a debt on my credit account that is reporting at about 10 grand. I want to save up to be able to offer a good enough pay to delete letter. How much should I be saving? how much should I offer in the letter?

[collics]

Info you might need to add:

Who is the collection agency?

How old is the debt?

What's the date of first delinquency? And what state are you in? 

[DoctorCat]

The collection agency is National Credit Management. Its about 2 years old and why does state matter?

[AllZero]

^ SOL Statute Of Limitations

[DoctorCat]

I live in the great state of Missouri 

[Remedios]

@DoctorCat  hi and welcome to the forums 

It's relatively new account so start around 40%-50%, and see what they say.

The amount is pretty high, so litigation is possible.  

You could also offer even less and see if they counter with an acceptable offer 

[wa3more]

Looks like Missouri is 5 year SOL. 40% might be good start point, you will end up higher.

Ask them what they would take to settle. Do not be the first to mention a number. You will be negotiating against yourself.

[coreysw12]

Typically, the settlement will be lower if you can pay it in a lump sum immediately. So I'd save up $5k or so if you can, since 50% is probably around what the settlement you'll reach will be. You might get lucky and talk them down lower, but in my experience it's almost always been around 45-55%. Sometimes if the account is really near the end of SOL you can negotiate it much lower, but I wouldn't count on it - they could always decide they're better off just suing you for the whole thing.

[wa3more]

Yes I agree 45 to 55 is a  range that creditors usually like to get to.  You have 3 years left before SOL so not much leverage..  ask them what lump sum will it take to settle ? 

[satio]

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@DoctorCat wrote:

The collection agency is National Credit Management. Its about 2 years old and why does state matter?

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Who was the original creditor for the debt and is the 10k the correct amount of the debt that was charged off and now owned by this collection agency?