How Do You Settle Debt With A Collection Agency?
When a debt has went to a collection agency, bill collectors will try to pressure you into paying more than you can afford. This is because they have bought your debt at a reduced amount and want a return on their investment, and quick! Most bill collection agency debts have been bought for pennies on the dollar. You can use this to your advantage when trying to settle debt. Here’s how! Do not agree to pay more on your debt than you can reasonably afford each month. Even if it is five dollars a month, something is better than nothing, so long as the payments are made each month and on time. Do this until you have reached a point you can settle this debt. Figure out what it would take to settle the debt. Most collection agencies will take a payoff of 70% of the original debt. To find this amount, multiply the original debt by .7, and keep track of any payments made toward that amount. When you have enough cash on hand to make the pay off, call the collection agency and offer to settle y