Settle a Debt


I've been paying on an old credit card debt which originally was $1,000 I've paid well over $5,000 because I was given bad advice by a so called credit counselor who advise me to take payment arrangements offered by the collection agency they continue to charge 12% interest on the unpaid balance. I've called to try and settle the account and they won't, or they tell me to call them on the next day and I get someone new.

I want to settle this debt because I have paid it off at least twice. How do I get them to settle with me is their an agency or someone that can help me.

Who can I report them to? Is this legal?

Comments for Settle a Debt

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Jan 11, 2010
Has debt collection agency been misapplying consumer's payments?
by: Mary Reed

So sorry about your I totally understand why you want to put this debt behind you.

The first thing I would do is write to the debt collection agency to explain that based on your records, you've been paying on the debt for a long time and it appears that you've paid it off many times over and so you are asking the agency to provide you with a written accounting of all of your payments and exactly how they were applied. (The issue may be that your payments would not applied appropriately to your debt.) You are legally entitled to this information. Make a copy of the letter for your records and send the original to the agency via certified mail. Get a return receipt from the post office.

Give the agency 30 days to respond to your letter. Once you either have a response in hand or the 30 days have passed and you've not heard from the agency, schedule an appointment with
a consumer law attorney who has experience dealing with debt collection matters.

Go to for a referral to an attorney in your area. (Your initial appointment with the attorney should be free, but confirm when you call to make an appointment). The attorney will assess your situation and advise you about your next steps.

Be sure to bring to the appointment all documentation you have related to the debt, including a copy of the agreement between you and the debt collection agency and your copy of the letter you send to the agency requesting an accounting.

Good luck!

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