Personal Finance

Debt Settlement

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  • May 18th, 2015 12:45 am
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[OP]
Newbie
Dec 13, 2014
65 posts
6 upvotes
Edmonton, AB

Debt Settlement

About to begin the long road back to good credit by negotiating settlement with my creditors. Anyone have advice or tips that have been through this process?
5 replies
Deal Expert
User avatar
Aug 18, 2005
21125 posts
5804 upvotes
Burlington-Hamilton
Kennyboy82 wrote: About to begin the long road back to good credit by negotiating settlement with my creditors. Anyone have advice or tips that have been through this process?
I haven't personally needed to do this but I can offer some "Protips" help you avoid backslide and getting bitten by the turds that are debt collectors:

1. If a debt collector is speaking, they are lying.

2. Do not go for any kind of monthly repayment, get a single one-shot deal because this is much easier to prove afterward that you paid it.

3. Absolutely never give any collector any money unless you have a letter from them IN WRITING indicating that a certain dollar amount is "settlement in full". NEVER EVER do some deal where they promise to send a letter afterward. They will never send it and then someone will call back claiming you still owe money and the original guy doesn't work there anymore, etc.

4. Never ever give them any kind of electronic access to your banking or credit cards. They will clean you out for anything they can get. The only way you should pay is with a certified cheque or bank draft in which you can get an image of the negotiated instrument showing they received the money.

5. If they claim they are going to garnish your pay or start foreclosure next Friday, see #1.

6. After paid off one of these, keep your settlement letter and the image of the negotiated bank draft in a file for the rest of your life.
- casual gastronomist -
[OP]
Newbie
Dec 13, 2014
65 posts
6 upvotes
Edmonton, AB
[quote="604nation" post_id="22506535" time="1431904383" user_id="922571"]so you are in collections?
Yes.

how much debt? can you get a consolidation loan or is it too late?

~ 45k about three years in.

you can hire a settlement company who get paid by the lenders.

I'm under the imression they wouldn't have my best interests in mind. Looking to negotiate on my own.
Deal Addict
Aug 31, 2014
1505 posts
560 upvotes
YVR, BC
Kennyboy82 wrote: call them all up and offer them 50% if they accept you will need it in writing - pay via trackable cheque. most of them will take your money and run, they will still try to get the remaining money from you or sell off the rest to another company that will still hunt you down.

using the debt settlement company they will contact the actual lenders and settle with them, in turn they get a % of the settlement and it's recorded and closed off.

the collection companies are just going to take your money give you a letter that means nothing, and you still owe the amount listed on your credit report. nothing changes for you, just alot lighter in the pocket book.

if you can deal with your lenders directly.
Deal Expert
User avatar
Aug 18, 2005
21125 posts
5804 upvotes
Burlington-Hamilton
604nation wrote: This is why you need to get an offer of settlement in full in writing before giving them money. I would not do any verbal or partial deals.
- casual gastronomist -

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