If you canвЂ™t pay a collection agency the entire amount you owe on a debt, you may want to try to negotiate a settlement with the collection agency. If you are successful, youвЂ™ll pay only what you can afford, and the collection agency will accept that amount as payment in full.
Call the Debt Hotline at 1-888-495-0133
Here are answers to two of the most frequently asked questions we get about settling debts with bill collectors:
Ultimately, if you try to settle a debt, your goal should be to settle for as much as you can afford without putting your personal finances at risk. Never agree to a settlement that you cannot afford! Otherwise, you are likely to create new financial problems for yourself. This means that before you begin negotiating with a collector itвЂ™s essential that you know exactly what you can afford to settle for.
Can I pay a settlement in installments?
When it comes to collection agency debt settlement, the sooner you can pay the negotiated amount the better. Although some collectors will agree to let you pay a settlement amount over time — maybe in a series of two to six payments — most of them will expect you to pay the amount immediately in one lump sum.
Warning! Never pay a settlement amount until you have in hand a signed settlement offer. It should spell out the terms of the deal you agreed to and should include language stating that the debt will be considered paid in full when your payment is received.
Can I negotiate my own collection account settlement?
If you need need help resolving your debt? Call the Debt Hotline at 1-888-495-0133.