| Today's hard times are causing millions of people to | | | | actually happier if you guarantee payment of a smaller |
| stop and look at their financial situation. They are also | | | | sum rather than larger which you may not be able to |
| causing the United States about a trillion dollars. Debt | | | | actually pay. Do not send them ANY money until you |
| settlement is an option for many people but not | | | | get an agreement in writing. Don't apply for new loans |
| everyone and it is possible to do this yourself. | | | | or credit cards without the creditors approval. |
| Hector Milla Editor of the "Best Debt Settlement | | | | When trying to contact a collection agency to work |
| Companies" website -- -- pointed out; | | | | out a repayment plan much remains the same as |
| “… If you can no longer pay even the minimum on | | | | above. Write a letter, never call a collection company |
| your debts it's time to look at your options. First figure | | | | as the agents only want to collect money they have |
| out the total amount you are in debt and break that | | | | no interest in settling you debts. Get you contact |
| down into different types of debt, credit card, | | | | details as above. |
| mortgage, school loans etc. Then get a copy of your | | | | If the agencies are making harassing calls sent them a |
| credit report …” | | | | cease and desist letter by certified mail, get a return |
| This is easy to do and free for the most part if done | | | | receipt, and ask them to not contact you. Once they |
| on line. Get reports for the three big bureaus, Equifax, | | | | get the letter, they can only contact you to inform you |
| Trans Union and Experian. These will tell you if your | | | | of legal action they are taking. Do not try to negotiate |
| account is still with the creditor or if they have turned it | | | | with a collection agency by phone and as above keep |
| over to a collection agency. | | | | you temper in check. If when you do get calls from a |
| From your previous list of debt amounts you know | | | | collection agency, even if there is a mistake and the |
| who you owe the most to, contact them first. You can | | | | debt is not yours speak to them and ask for debt |
| do this either by letter or phone. It is actually better to | | | | validation letter, which makes them prove the debt is |
| send a letter by certified mail so you can attach any | | | | yours. |
| other needed information such as a budget or | | | | “… If you do not speak to them they can get a |
| payment plan you would like to offer. Some important | | | | court judgment against you. |
| facts are knowing which creditor to pay first. This is | | | | Sometimes a creditor or collection agency may |
| the one you owe the largest amount to, not the one | | | | contact you and offer a debt settlement plan. Most |
| who calls you most aggressively. | | | | creditors and collection agencies do not accept an |
| Make sure you do not offer an amount you cannot | | | | amount lower than 30%-50%of the original balance. If |
| afford and do not say you will pay what you can. | | | | you get an offer like this grab it. Once you do though |
| Creditors don't consider that a commitment. Many are | | | | get everything in writing, in detail …”H.Milla added. |