Quote:
|
Originally Posted by Mr. Pink
NoSoup,
Wow, what a great thread!
Here's my situation and question:
I have had a bank account with one institution for some time, and about 6 months ago, shortly after my 18th birthday, I overdrew. Due to various demands on my time (school, and various extracuricular activities aimed at college scholarships), I was unemployed, and so it was some time before I was able to rectify the situation. When I once again I had some money I went to the bank and worked out a deal to pay off the balance to the collection agency they had recruited, and put some money back into the account.
When I went in, it was the Thursday or Friday before the 4th of July and sort of late in the afternoon. The guy I talked to said he would take care of what he could that day, but some things would have to be taken care of Monday, and while he would be out Monday, someone would handle it.
Fast forward a couple of months, I had assumed the debt was taken care of, and had since had a fairly fluid bank account that I was never sure of exactly where it was, due to the adding and subtracting of funds related to student loans, and the costs of moving into a college town. I was home one weekend when I recieved a phone call, asking me fairly politely something to the effect of "where's our money?" I did some investigation, and the debt was never taken care of... Which leads me to my current perdicament. I am riding a razor edge, balancing my phone payment, my rent payment, and some other expenses, (no car, thank God) and waiting on some funds to clear the University so I can be back in the clear. I don't have the funds to take care of the debt right now, but (hopefully) within the next 2 weeks I will. When I do have it, what should my course of action be? Should I, and how would I, apprach them about coming to some terms about a reduced payment, or some sort of payment plan? Any extra advice?
Thanks so much!
|
Well, debt collections agencies buy your debts for a reduced price, so hopefully you will be able to negotiate a lower price.
Basically (assuming you have a phone number) just give them a call and tell them that you are a student, have many debts out there, and can't afford to pay them. However, you would likely be able to come up with $X to give them on X Date if the debt would be cleared. Make $X be whatever you feel comfortable paying - but it is unlikely they will accept anything less than... oh, 70%, simply because the account is newer. If you want to give less a try, go ahead, but I would imagine the chances of them accepting less are going to be slim.
If they don't accept, you have a couple of options. The first option would be to pay the balance off in full, the entire amount they are asking for. The second option would be to let the account just sit there for a while, while they get more and more anxious that they aren't going to get any money at all. After a period of time, give them a call, and it is likely that you can settle the debt for much less, maybe even only 50% of what you owe. However, the second option does come at a price, the cost being your credit.
It's pretty much up to you to decide if paying the extra would be worth your credit rating, especially considering the current state of it. If they refuse your initial offer, ask them if they would be able to accept any less. When on the phone with the agency, make sure you sound like you are doing your best to pay them as quickly as possible, but you are just in a really tough situation. Maybe the person you are talking to has a bit of a heart, though in that business it will be unlikely.
I hope this helped out - if not, feel free to ask again!
Good luck