Re: Off topic/credit card debt

> Greetings to all,

> I will shortly be able to come up with most or all of the funds to pay
> these debts off rather than letting them go altogether and filing
> bankruptcy.

Yippeee!! Hooray for you!! Congratulations :-D

> 1. Should I contact the oringinal creditors as a starting point as opposed
> to the collection agencies

It has been my experience that it depends upon the contract the creditor has with the collection agency. Either way, at this point, the collection agency is going to get their percentage (which is huge). The original creditor may or may not be able to deal with you directly.

It has also been my experience that the original creditor is usually (not always) much nicer to deal with than the collection agency.

If I were you -- and this is my PERSONAL OPINION, I am **NOT** an expert on this and don't pretend to be -- I would contact the creditor first and tell them you do not want to deal with the collection agency.

If they will deal with you directly, tell them you will be able to ARRANGE TO GET the funds to pay them in full (so it sounds like you have to meet certain criteria in order to get your hands on this money; not like you're just being snotty and saying, "It's my way or no way").

> 2. Even if I can come up with all of the monies, would it be in my best
> interest to pay the debts in full or negotiate a lower amount with the
> creditors?

If you negotiate lower amounts, you are, in all likelihood, going to be stuck with the "charge-offs" on your credit for the next seven years. (It is theoretically possible to negotiate this away, but it ain't easy -- and now that they've lost half by sending you to collections, I doubt you're going to get very far.)

Also, you don't save the full amount, because if they charge off more than $600, you have to claim it as income.

If I wanted to come out as clean as possible, I would just thank my lucky stars I was able to get my hands on the bucks and pay it in full.

> 3. What is the best way to insure that once I pay either the full amount
> or a negotiated amount,I can get the creditors to show my account current
> on my credit report so it once again looks like it did before this mess?

That's the deal. You can get this money IF they agree to show your accounts "paid in full" and remove the "collections" notation. It is in their power to do that. For all they know, you are getting a loan from Grampa Goober and he isn't going to let you have the money unless you meet this condition.

Once they agree to it, you ask them to fax you a statement to that effect (signed, on their letterhead), and promise to give them a check by phone for the full amount.

DON'T GIVE THEM THE MONEY WITHOUT THE AGREEMENT!!

And make sure you get the payoff up to the minute. Don't go by today's amount two weeks from Tuesday or you'll be stuck with the last finance charge or whatever, and while you're bickering with them over that, you'll have a late charge and the ball will start rolling again.

Insist on the final payoff amount being included in the written agreement they're going to send you, as well as the promise to show the account "paid in full." They will give you a fixed amount of time to make the payment (it's usually something like 7 days, but in my particular case, the "check by phone" worked wonders in gaining their cooperation).

> Any solid advice you can pass along would be greatly appreciated.

This is solid advice BASED ON MY PERSONAL EXPERIENCE.

PLEASE get professional advice if you have any doubts about how to proceed. THIS IS NOT PROFESSIONAL ADVICE!!!

Good luck.

Luv,

MaaMaw