Posted on
September 21, 2009
at
3:51 am
If your credit report says that a creditor has written off your debt you will receive a letter stating that another group has purchased your account and wants to collect from you-- and you may be asking this question: if my debt has already been written off the original creditors, how come I still owe...?
Posted on
September 21, 2009
at
3:55 am
Right, if the consumer finds his credit card account with a collection agency, it means that the creditor has classified the consumer's account as bad credit. The collection agency has purchased that account for a discount in hopes of collecting the full amount later on. So it means that the amount you owe remains the same...but your collector has changed.
Posted on
September 21, 2009
at
3:59 am
Even if the credit card company considers that account as "bad credit" ...or a "charge-off," it still enables them a tax break by claiming a loss. And the third party collection agency that's collecting from the consumer..would probably be an arm or is owned by the credit card company anyway.The credit card industry is pretty sly, so the consumer is advised to be watchful, to read up on his/her rights. Here: http://www.ftc.gov/bcp/edu/pubs/consumer/credit/cre18.shtm
Posted on
September 21, 2009
at
4:01 am
How long would this (credit card) bad credit stay on the consumer's credit report?
Posted on
September 21, 2009
at
4:05 am
Being in debt (or having credit card debts) for 7 years is bad for the credit standing, however in the credit report, it will also show the debt was paid--if the consumer is able to do something about the debt.Something like, reducing it or eliminating it via credit counseling or debt settlement. These programs usually last from a year to five years.
Posted on
September 21, 2009
at
4:13 am
The consumer should not let his bad credit situation to get any worse- worse means the collection agency suing the consumer for judgment - and judgment means: wage garnishment, bank levy, or property lien. Wendie was correct to suggest for the consumer to get professional help in solving his/her debt problem.Destroydebt.com offers a free consultation, just fill out a form, and get matched up to the right debt relief solution for you. It is free.
Posted on
September 21, 2009
at
4:16 am
Just to add to what they've said:It's a bit stressful to receive collection calls- but the consumer should feel better knowing that, credit card debts (unsecured) are better than secured debts- because unsecured debts amounting to $10,000 or more can actually be reduced to more or less half via debt settlement, granted that the consumer's accounts are already past due.Many creditors are willing to negotiate the consumer's balance through those conditions.
