Bottom line?

by Jennifer
(CA)

I have a collection agency trying to settle debt for me over a credit card. They state the most they can take off for a settlement offer is 15% and that if I don't accept that it is going to legal. Is this true? My debt is at around $3800.00.

Comments for Bottom line?

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Oct 28, 2009
 Negotiating with debt collectors
by: Gerri

Jennifer,

The most important question here is not their bottom line, but yours. Can you afford to settle the debt for the amount they are proposing, without robbing Peter to pay Paul? If so then go ahead and settle. (Make sure you get it in writing before you pay a penny!)

If not, then you'll have to tell them you can't afford it and wait to see what happens next. They may refer it to the legal department, which may or may not initiate a lawsuit. But even if they do sue you, you'll have time to respond by either trying to settle before the court date, or by looking at other options such as bankruptcy if necessary.

This is relatively small debt, though for you it may be huge. If you have other debts you need to resolve, I would encourage you to talk with a bankruptcy attorney and a reputable debt settlement firm.

If this is the only debt you are dealing with, then see if you can find a way to come up with the extra money, even if that means a second job. I don't know your full situation, but do what it takes to put it behind you and you'll feel a lot better when it is!
Oct 28, 2009
 LEGAL?
by: Anonymous

I WAS TOLD THAT CREDIT CARD DEBT CAN NOT BE TAKEN TO A LEGAL STANDPOINT? IS THAT NOT TRUE?
Nov 06, 2011
 Legal standpoint
by: Anonymous

Sorry, but that's faulty information. The creditor, a debt collection company contracted by them, or a debt collection agency who buys the debt, can all sue for the money.

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