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negotiating with CA's--when is it worth it?


whitknee
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i owe $1559 to 5 different CA's, all for unpaid medical bills i racked up while uninsured:

$75 to Collection Company of America

$775 to Financial Corporation of America

$180 to Paramount Recovery Systems

$255 + $198 to United Revenue Corporation (two different accounts, for whatever reason)

$76 to West Asset Management

i'm thinking i should probably not bother trying to negotiate w/them on the $75 and $76--just pay them and get them to agree in writing to delete it complete from my credit report, right? i would definitely like to negotiate the $775 as that is the biggest thorn in my side. are the ~$200 ones worth negotiating (i.e. do i have a good chance of talking them down?) or should i just suck it up and pay those? also, when corresponding with United Revenue Corporation, should i handle the two accounts together or separately?

ideally i would love to get these all taken care of for around $850... does that sound at all possible?

any advice/words of wisdom are much appreciated. i am just beginning this process of fixing my credit and this site and forum have been tremendously helpful.

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Hi there,

IMHO, it's only worth negotiating w/ CA's when the debt is 3 yrs of age or younger...beyond that, it isn't worth it unless they'll agree to delete. How old are these debts?

My experience with West Asset Management was HORRID, honestly-you may want to consider contacting the original creditors for these FIRST regardless.

The one thing you must consider is, that by paying these you will in essence be re-aging your TL on your CR's so that the "paid debt" while paid, will appear newer. This will cause a dip in your FICO. You'd want to be sure you're ready for that and the time it will take to build the FICO back up. Do you have positive credit building for you on your credit reports?

Here are the debts you said that you have...

$75 to Collection Company of America

$775 to Financial Corporation of America

$180 to Paramount Recovery Systems

$255 + $198 to United Revenue Corporation (two different accounts, for whatever reason)

$76 to West Asset Management

How old are these accounts?? Finally, what you should be aware of to is that medical debt does not have the horrible negative weight on your credit reports that say, credit card debt has. People can't help it when they get hurt or need care.

Elyse

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i owe $1559 to 5 different CA's, all for unpaid medical bills i racked up while uninsured:

$75 to Collection Company of America

$775 to Financial Corporation of America

$180 to Paramount Recovery Systems

$255 + $198 to United Revenue Corporation (two different accounts, for whatever reason)

$76 to West Asset Management

i'm thinking i should probably not bother trying to negotiate w/them on the $75 and $76--just pay them and get them to agree in writing to delete it complete from my credit report, right? i would definitely like to negotiate the $775 as that is the biggest thorn in my side. are the ~$200 ones worth negotiating (i.e. do i have a good chance of talking them down?) or should i just suck it up and pay those? also, when corresponding with United Revenue Corporation, should i handle the two accounts together or separately?

ideally i would love to get these all taken care of for around $850... does that sound at all possible?

any advice/words of wisdom are much appreciated. i am just beginning this process of fixing my credit and this site and forum have been tremendously helpful.

Why would you not try to negotiate? Worst case scenario, they tell you you must pay in full. Or why not try to Validate with the CA's first to see if maybe the smaller one's will not be able to Validate. West asset maintains horrible records and more than likely will not be able to validate.

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none of them are very old at all, the "Date Open" listed on my credit report for each one ranges from 8/05-5/06. so all are less than 2 years old.

these are my only real debts--the only other things on my credit report are my auto loan from Citi (current balance $12,860, never late), an Old Navy credit card (balance is pretty high, $1008 on an $1100 limit but i've never been late, and paying the balance down is my next priority), and a Target card i just got recently (balance is $179 on a $200 limit and i'm about to pay it in full, the first statement hasn't even come yet).

rm2378, i will definitely try and validate. as to "why would i not try and negotiate"--i'm very new to this, i'm 20 and really just starting out w/my finances so i'm kind of clueless! but i'm really trying to absorb as much knowledge as i can so i can make the best possible decisions. i appreciate the advice!

edit: i have just started the dispute process (disputed all the CA stuff, now beginning the 30 day waiting process to see what happens). so validation is the next step i believe, gotta go read up on that more!

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none of them are very old at all, the "Date Open" listed on my credit report for each one ranges from 8/05-5/06. so all are less than 2 years old.

these are my only real debts--the only other things on my credit report are my auto loan from Citi (current balance $12,860, never late), an Old Navy credit card (balance is pretty high, $1008 on an $1100 limit but i've never been late, and paying the balance down is my next priority), and a Target card i just got recently (balance is $179 on a $200 limit and i'm about to pay it in full, the first statement hasn't even come yet).

rm2378, i will definitely try and validate. as to "why would i not try and negotiate"--i'm very new to this, i'm 20 and really just starting out w/my finances so i'm kind of clueless! but i'm really trying to absorb as much knowledge as i can so i can make the best possible decisions. i appreciate the advice!

edit: i have just started the dispute process (disputed all the CA stuff, now beginning the 30 day waiting process to see what happens). so validation is the next step i believe, gotta go read up on that more!

Good luck whitknee! You seem to be starting out on the responsible track. I'm sure many of us here wish we'd been more interested in our personal credit and more responsible at the age of 20!!

:grin::grin::grin:

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Good luck whitknee! You seem to be starting out on the responsible track. I'm sure many of us here wish we'd been more interested in our personal credit and more responsible at the age of 20!!

:grin::grin::grin:

thanks gypsie! both of my parents have filed bankruptcy within the past 2-3 years, and my 25 year old sister is several thousand dollars in CC debt, so it's really just a case of learning from others' mistakes. i'm hoping that if i get on the right track early, i'll have financial success in my future. after i get all my debts taken care of, my next goal is to get a savings account set up with at least $1,000 for emergency funds.

EDIT: i just started the dispute process for all the CA stuff yesterday (through Experian), and i'm working on my DV letters now.

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if you are employed, start that emergency fund with good old fashioned I-bonds. They pay a decent coupon and keep pace with inflation.

I would try to negotiate with the original creditor before I paid teh CAs. Ask for their good will by asking the CA to delete. Go right to teh head, not a service rep. Explain your situation. Otherwise, I wouldn't bother, just pay them and take your lumps.

Keep that Old navy card at no more than 250. see if you can get a gas card. That's a good way to build your score, too, as you know you need it adn know you'll pay it.

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