Negotiate A Restructuring Of Payments For A Better Credit Score
If you owe $5000 and you are offered a $1000 settlement offer, you should do everything humanly and ethically possible to raise the money and be done with it.
However, for whatever crazy reason you cannot come up with such an amazing settlement offer, you should consider debt negotiationfor restructuring of payments.
If your account is still with the original creditor, your goal here is to prevent your account from going to collections and having it reflect negatively on your credit record.
The moment that you foresee that you will experience a financial hic-up, you should immediately take action and contact the creditor by phone and request a moratorium of your payment due to your upcoming situation.
By you initiating the call, the creditor will consider this and will be more willing to work with you.
Make sure that you explain to the customer service representative that you expect that your situation will only be a temporary one and that you only need a little help to get you through this.
The creditor may suggest that a moratorium be in effect for a two or three month period.
The creditor may also suggest payment of 'interest only' for a couple of months.
Either one of these options is a good deal under the condition that it does not reflect negatively on your credit record.
However, do not, under any circumstances, agree to send post dated checks or pre-dated checks.
If your account is far past due and is already with a collection agency, your payments should be based on the condition that your account is re-instated as current and that such a status reflect on your credit bureau report.
This may require a 15 to 20 percent down payment, with the balance to be paid in full in 6 to 18 monthly installments, depending on the total outstanding balance.
Do not hesitate to ask that any accumulated interest and past due fees be deleted from your balance due.
They may or may not agree to this request but you should not miss the opportunity to ask.
It may just work out in your favor.
Here again, it is extremely important when dealing with a collection agency, that you do not under any circumstances agree to send post dated checks or pre-dated checks.
In either case, whether you are dealing with the original creditor or a collection agency, do not over commit yourself to payments due to the pressure of the customer service representative or bill collector.
You will certainly cause more damage to your credibility by not living up to the outlined agreement.
Finally, get all payment agreements IN WRITING.
You should request to the creditor or collection agency that they fax or mail you a written agreement outlining the terms.
However, for whatever crazy reason you cannot come up with such an amazing settlement offer, you should consider debt negotiationfor restructuring of payments.
If your account is still with the original creditor, your goal here is to prevent your account from going to collections and having it reflect negatively on your credit record.
The moment that you foresee that you will experience a financial hic-up, you should immediately take action and contact the creditor by phone and request a moratorium of your payment due to your upcoming situation.
By you initiating the call, the creditor will consider this and will be more willing to work with you.
Make sure that you explain to the customer service representative that you expect that your situation will only be a temporary one and that you only need a little help to get you through this.
The creditor may suggest that a moratorium be in effect for a two or three month period.
The creditor may also suggest payment of 'interest only' for a couple of months.
Either one of these options is a good deal under the condition that it does not reflect negatively on your credit record.
However, do not, under any circumstances, agree to send post dated checks or pre-dated checks.
If your account is far past due and is already with a collection agency, your payments should be based on the condition that your account is re-instated as current and that such a status reflect on your credit bureau report.
This may require a 15 to 20 percent down payment, with the balance to be paid in full in 6 to 18 monthly installments, depending on the total outstanding balance.
Do not hesitate to ask that any accumulated interest and past due fees be deleted from your balance due.
They may or may not agree to this request but you should not miss the opportunity to ask.
It may just work out in your favor.
Here again, it is extremely important when dealing with a collection agency, that you do not under any circumstances agree to send post dated checks or pre-dated checks.
In either case, whether you are dealing with the original creditor or a collection agency, do not over commit yourself to payments due to the pressure of the customer service representative or bill collector.
You will certainly cause more damage to your credibility by not living up to the outlined agreement.
Finally, get all payment agreements IN WRITING.
You should request to the creditor or collection agency that they fax or mail you a written agreement outlining the terms.
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