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Paying Off Debt Concern


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I have a concern about my debt that I am currently paying off.

I am paying off one C.A. at a time, and one in particular will be paid off April 15th, 2005.

I will be sending my payment Return Receipt with a letter reqesting that they send me some type of paper stating that the account was paid completely, and that the debt is satisfied.

My concern, is that they don't send a letter back, or worse yet, that they try to say that the debt is not paid off!

I am worried that this could happen with any of the creditors that I am working with.

Is there any way to prevent this from happening?

I am not settling with any of them - I am paying what is owed.

Is there any advice on what I should do to gurantee that these debts are done, and paid for, so they won't try to come after me in the future, and try to say that I never paid them off completely? Sorry if this may not make sense.

Any advice is appreciated.

Thanks in advance!

~ Kari ~

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I guess what you're doing is ethically and morally correct, if that's the road you choose, however, DO NOT agree to pay any inflated charges, ie. coll. fees, usurious int. rates, etc.

That being said there's no harm in negotiating deletion in return for payment. They should all be receptive to this, especially considering you're PIF. As long as you've retained the original notice from each CA, with acct. numbers, your cancelled checks should be sufficient proof of satisfaction. Write "payment in full' and the account #'s on the checks! Organization and good record-keeping is key. (don't forget you can still try to negotiate with the OC; they can call back the CA, thus eliminating them from the reports.)

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They will say it is paid, and if that is what makes you feel better about yourself, good for you. I did the same on 2 collections when I originally started. Of course, the next time I pulled my credit, I found out the truth. Wanna know what it is? Here goes:

1 If you pay a CA and you did not get a pay for delete, what you will most likely get is a "paid collection". Yes, it is marked as paid, but FICO penalizes you because the collection happened in the first place. You get little or no credit on your score for paying it. Your score does not improve with payment.

2 The funny thing is, you may not be paying what you owe. There are companies called "Junk Debt Buyers" or JDB's that buy up old loans which are considered uncollectable (called junk paper) usually for less than 10% of what the outstanding amount is. The older the paper, the less they pay. Once sold, the bank you borrowed from then writes the loss off and gets tax concessions on the amount.

The CA that you pay may actually be a JDB. You paying them doesn't help the person you borrowed from. They already lost all the money they are going to lose. All you do by paying is give up to 10,000% profit to a JDB. The least you can do is get a deletion for paying a PORTION of this outstanding paper. Anything else and you are hurting yourself.

JDB's are making HUGE profits at the expense of the people who can least afford it. Don't get suckered.

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Thank you so much for the replies. They were very helpful.

How do I go about getting a deletion???

In may I will be paying another creditor to whom I owe about $1,000.

Do I ask them to settle for a certain amount and delete it from my credit report?

If so - do I have to send them a letter, and have them sign it before I send in the payment?

What if they do not follow through with the deletion?

Thanks again!

~ Kari ~

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