GatesThePoorOne Posted July 27, 2008 Report Share Posted July 27, 2008 I have 3 collections. all of them are less than 5000.1st-902nd-2303rd-4500I tried credit councelling, but the creditors didn't settle.Now I got from some collections agency about $90 bill they would settle for $45they stated that they would report as fully settled. I live in IA. should i go ahead and pay the settlement or is there a chance that they can comback with another letter for remaining balance.whne you join credit conselling, does the collections report even after 7 years..does any body know please suggest...thanks Link to comment Share on other sites More sharing options...
Debt Guy Posted July 27, 2008 Report Share Posted July 27, 2008 I tried credit councelling, but the creditors didn't settle.Credit counseling is not a settlement program. Credit counseling is a process of working out payment arrangements, usually at a lower interest rate, whereby you pay the full amount over time.Now I got from some collections agency about $90 bill they would settle for $45they stated that they would report as fully settled. I live in IA. should i go ahead and pay the settlement or is there a chance that they can comback with another letter for remaining balance.If you want this deal, ask them to fax you a "settlement letter". The letter should outline the terms of the agreement and state that the difference is forgiven.whne you join credit conselling, does the collections report even after 7 years.With or without credit counseling, any negative tradeline may not stay on your credit report longer than 7 1/2 years from the date of first harm (sometimes called the date of first default).PS -- the two smaller debts are not your problem. The problem is the $4500 debt -- lawsuits are routine for a balance of that size. Link to comment Share on other sites More sharing options...
will35010 Posted July 27, 2008 Report Share Posted July 27, 2008 What has worked best for me is to get the companies on violations and take them to court. Once you get a judgment against them, they have glady zeroed out the account balance and removed the tradelines from my reports. But all of my negative credit is very old and about to fall off anyway. If you do decide to settle, make sure they remove the tradeline from your report. Get everything in writing!!! That cannot be emphasized enough. Link to comment Share on other sites More sharing options...
admin Posted July 28, 2008 Report Share Posted July 28, 2008 http://www.creditinfocenter.com/debt/settle_debts.shtml Link to comment Share on other sites More sharing options...
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