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Negotiating with creditors question


Georgia Boy N Wife
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The information on this site is helpful, but i have a question: it talks about "settling" with creditors/CAs and samples of creditors that have "settled" for X%, but when you "settle" with a creditor/CA does that mean you pay them the settled amount in full at that time?

For example, if i had an $8000 credit card debt and it is passed to their collection agency, when the CA calls and we agree to "settle" for say $6000, will they expect the full $6000 right then? Or do they work out payment schedules?

If I had $6000 laying around, I wouldn't be behind in payments in the first place!

Do CAs expect payment in full or are payment plans worked out? Your help is appreciated.

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In almost all cases, original creditors want lump sum payments to "settle" an account. Most do have "hardship" programs, which will reduce your payments and interest for some period of time, but, in that case, they expect to be paid in full.

If a collection agency offers you a "settlement"...and they are willing to take payments....run away...you're being scammed.

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