Posted on
May 11, 2010
at
1:55 am
Hello, a friend advised me to use a debt settlement companyinstead of a credit counseling agency because he said, that my savings depend on the creditor debt collection process. that those programs rely on the time frame?
Posted on
May 11, 2010
at
2:30 am
Hi there, about the debt collection process, the original creditors will try to collect on the debt for 5-6 months before assigning the debt to a third party debt collection agency. These collection agencies take on older debts that are past due because the debts are no longer valued assets on the books of the original creditors.
Posted on
May 11, 2010
at
2:36 am
debt collection process - credit counseling - debt settlement: Hi there, your friend is right. When the account is still with the creditor, the chances of the debt being settled at a good percentage is slim. They would settle perhaps if you have 75% of your balance ready to give them, otherwise, what they might agree to do is, just like what the credit counseling agency's program Debt Management Plan does, reduce the interest rate (or maybe freeze it for a time), or alter the payment plan ... but the story changes after the 5th or 6th month when the account charges off.
Posted on
May 11, 2010
at
2:57 am
debt collection process - credit counseling - debt settlement: ...subliminal glasses was talking about debt settlement/credit counseling via professional negotiating companies. You can also do those things on your own. Just ask your bank about their hardship program. You may also go through credit counseling, because it is supposed to be free, just don't sign up for their Debt Management Plan which would cost you a one time set up fee and then $25/mo for 3-5 years.
Posted on
May 11, 2010
at
6:30 am
debt collection process - Why your account is assigned to a third party collection agency? So that the creditor can get back at least a portion of your debt. These collection agencies are owned by creditors too, and they typically get compensated depending on whatever amount of money they collect on the debt. That is the reason why these third party agencies very aggressive and even employ dirty scary tactics to get the debtor to cough up as much money as they possibly can. So it's wise for you to know your rights. There are limits as to what they can say and do to you.
