Today I have a special guest post from Luke McCann, owner of CollectionAgencyMatch.com. He has worked in the debt collection industry for over 15 years and now currently helps small businesses collect payment on their invoices.
You have decided to finally get out of debt and have gone through all of your bills to formulate a plan of action. This can be an exciting yet overwhelming time if you have several past due debts to clean up.
If the debt has been charged off and sold to another company, it is highly suggested to ask for documentation in writing. Details such as the name of the creditor, amount owed, and interest rate, should all be easily obtained.
If you are working with a debt collection agency for small businesses, they will typically be willing to negotiate with you because they understand that something is better than nothing.Some creditors will even offer payment plans.
To avoid future headaches, never pay over the phone with a collection agency.If you notice a payment is taken from your checking account without authorization, contact the collection agency and ask for the recorded phone call of the transaction.
If you are able to settle at a lower amount, the debt collection agency will update your credit bureaus showing the account was settled and paid off, but that is only after your credit has already taken a deep dive. The small benefit of paying off these old charged-off accounts is not worth the amount of money it will cost.
This depends on the type of debt, but most everyone will be dealing with credit card debt. If you have some accounts that are several months past due, but have not been charged off, then you could possibly settle the accounts.