Debt Collections - How to Pay Off Accounts in Collections
Have you had the unfortunate circumstance of an unpaid account going to debt collections? If so, you will want to be very careful on how you handle dealing with the debt collector in charge of your account. Debt collections, unfortunately, have a negative impact on your credit score, second only to bankruptcy. You will need to take quick action and be ready to negotiate with the debt collector in order to begin to restore your credit rating.
The very first thing you will want to try doing is having the debt collector delete the report from your file. You will want to make sure all of your communications are in writing. Send the collector a letter, often called a pay for delete letter, asking for your account to be deleted from your credit record. You will include in the letter your settlement offer on the account. If the debt collector agrees be sure to get the agreement in writing before making the payment.
If this scenario does not work you do have some other options for working with debt collections. You can offer the full amount and pay it in exchange for the account being deleted. Sometimes debt collectors will just simply refuse to negotiate to have you account deleted. If this happens to you do not pay the account until you negotiate an agreement that will at least help your credit rating.
Again, make sure you get everything is writing. Come up with an agreement for the collector to update your account once you have agreed on a settlement. First, try to get them to report the account was paid in full. If they are unwilling to update your account to this, then you may have to settle for them reporting the account was settled. Although this is not the best case scenario it is still much better than having your credit report showing your account is in collections.
As you can see there are some very important steps to take if you find one of your bills has gone to debt collections. Make sure you stand your ground and get in writing any agreements you come to with the debt collector. The sooner you act on the account the more likely you are to get a scenario that works in your favor.
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