Help with starting Debt Negotiation

Hello.  I have a lot of outstanding debt...the sum is totalling around $6000 spread over 5 accounts.  I am trying to figure out a way to pay these off in a matter I know I can do but I'm not getting much luck with negotiating.  The problem I'm running in to is that they're all so old.  The debts I've accrued are about 2 years old.  Two are overrdrafted bank accounts that are in collections.  One I spoke to offered some repayment options but kept saying they'd need a downpayment of around 600 dollars, which is really steep for me to afford at this point for just one debt.  And when I say I want to get everything in order before I commit to an option this one in particular said they could 'hold' the debt for $100 or so, which I didn't do because I didn't see how that would help me.

Are there other means out there for me to negotiate these debts?  I make 1700 a month and have rent and student loan expenses that I need to pay, so the minimum payments they want are fairly unreasonable.  I'm tryign to work out a way to get these things taken care of and I realize it will take some time, but I'm having a real hard time starting.  Any advice is appreciated, because I don't want to have these prolonged much longer where I wind up in court.

Hello.  I have a lot of outstanding debt...the sum is totalling around $6000 spread over 5 accounts.  I am trying to figure out a way to pay these off in a matter I know I can do but I'm not getting much luck with negotiating. 

generally speaking, you won't have much luck the first or second time you contact the collector. that is normal in this field.

The problem I'm running in to is that they're all so old.  The debts I've accrued are about 2 years old. 

these aren't old, they just seem that way to you.

Two are overrdrafted bank accounts that are in collections. 

these shouldn't be too difficult to make go away.

One I spoke to offered some repayment options but kept saying they'd need a downpayment of around 600 dollars, which is really steep for me to afford at this point for just one debt. 

don't fall for that downpayment trick. it is one way they use to suck all of your money out of your account or at least up to what they say you owe.

And when I say I want to get everything in order before I commit to an option this one in particular said they could 'hold' the debt for $100 or so, which I didn't do because I didn't see how that would help me.

don't fall for that B.S. either. they never hold anything.

Are there other means out there for me to negotiate these debts?  I make 1700 a month and have rent and student loan expenses that I need to pay, so the minimum payments they want are fairly unreasonable.  I'm tryign to work out a way to get these things taken care of and I realize it will take some time, but I'm having a real hard time starting.  Any advice is appreciated, because I don't want to have these prolonged much longer where I wind up in court.

first of all, you are doing the right thing by trying to negotiate your debts. remember the point of negotiation is to pay as little as possible. always write everything down the collector tells you even if you don't think you will ever use it. this makes good evidence should you get hauled into court. also, if you gethauled into court, you can make it go away by filing one document. this document puts the collector on the defensive and costs them a ton of time and money.

because you don't make a lot of money, your easiest line is:

"I have only so much money (dont' state an amount) to pay all of my bills. If you will agree in writing to accepting $YYY (this is where you state an amount), I will send that to you after I receive your written acceptance. And please make sure a person with the authority to accept this offer signs the letter. Thank you. If you don't accept my offer, I will have to resort to other legal means to solve this debt." Never say anything else. Never. If they agree to accept your payment, make sure they send you the letter and it is signed by someone who can bind the collection agency. You see, this becomes a contract between you and them. If you get the letter, send them the money in a cashier's check. Never use your personal checking account as they will use the check to draft the remaining balance they say you owe.

I used to be a lender and have written a book on how to deal with credit problems, debt collectors and original creditors. Since I charge for the book, send me an email to: foreclosure at reno dot com with BOOK in the title and I'll send you the link to the page it is on and you can decide for yourself if you want it. I use the proceeds for the benefit of our Ministries should you want to know.

You actually aren't in too bad shape and if you straighten yourself out now, you'll have a good credit record in no time. Keep trying and don't take their B.S. as the only way to do things.

Thank you for your response. 

I know sending letters is the key to this whole process.  The problem is I can't seem to get a starting point.  They're saying 3-4 months for a payment plan, which still irons out to about 600 each for two accounts.  The other ones are smaller but still need to be handled. 

Would it be advisable to send a letter suggesting something to them even if I don't discuss it over the phone?

You can always send a letter with the offer you wish to have. If they accept it, make sure the signature is by a person who has the authority to bind the collector.

Keep in mind they don't really care how much or how little you make. They only want to extract as much as they can from you. So, it behooves you to be emphatic that you have a very limited pot of money from which to draw. They can either get a piece of it or not get anything at all.

Don't tell them how much is in the pot or where you are getting the money. That is none of their business. Just be persistent and you'll eventually get your way or close to it. Most people quit after the third or fourth attempt and give in. If you keep at it and don't quit, you will get your way.

I got a letter today from one agency I talked to last week on the phone saying "This letter will confirm your agreement to remit a payment of $466 by 1/31"

 

I never agreed to this and when I called them last week to try and see what my options were to repay, I told them as much.  Any one know how serious this letter is?

Welcome to the world of debt collector tricks and traps. This letter will only mean something if you decide to send in a payment. If it was me, I'd write back and demand a copy of the agreement. You see, they just broke the FDCPA and you have an actionable event if you so choose to pursue it. The nice part is you can pursue it in your local small claims court. If they don't respond you will win by default and can then take the next step of obtaining a judgment against them.

 

That's what I was thinking too...they've actualled called twice today (haven't answered).  Would you suggest doing nothing over the phone and just writing a letter asking to see this agreement?  I remember the orininal conversation vividly...I had asked about options and said i was not able to make a payment write now, nor would i over the phone.  This is the same agency that asked for $100 just to 'hold the debt'

Here is what I wrote up.  Does this sound good?

 

To Whom It May Concern:

I am writing in response to a letter dated January 21st, 2008 that I received yesterday, stating “This letter will confirm your agreement to remit a payment in the amount of $466.66 due in our office by 1/31/2008.”

I have never made an agreement with your collection agency either verbally or written.  I would need to see proof of this agreement in writing in order to continue further with this matter.

 

Your letter:

To Whom It May Concern:

I am writing in response to a letter dated January 21st, 2008 that I received yesterday, stating “This letter will confirm your agreement to remit a payment in the amount of $466.66 due in our office by 1/31/2008.”

I have never made an agreement with your collection agency either verbally or written.  I would need to see proof of this agreement in writing in order to continue further with this matter.


I would address the letter to the person who signed the letter and say:

Attached is your letter dated January 21, 2008 in which you state:

"This letter will confirm your agreement to remit a payment in the amount of $466.66 due in our office by 1/31/2008."

Please forward either a copy of the written version of this referenced agreement or your recording of such an agreement or both to me at the above address. Failure to provide this information will leave me no choice but to pursue all available avenues open to me.

Thank you,

YOUR NAME 

You don't need to say anything else. Don't send them back their original letter. Instead attach a copy of that letter to the one you are sending. Send your letter Certified Mail, Return Receipt Requested.

As I think about your situation, it sounds to me like you really should do a verification of debt letter at this point rather than engage in a letter writing campaign about amounts. By writing letters you are giving tacit verification to the amount of debt they are claiming you owe.

I don't know this for sure but I would bet if you received an accounting, and it was an honest accounting, your debt would be a hell of a lot less than what they are claiming.

Hope this helps.

Thanks I should address letter to signee

About validations, i'm getting mixed answers about dates ... i know it's well over 30 days for all these collectors...don't they have the right to not validate it?