Try This…
Your goal is to Delete the Collection Account(s) that are lowering your credit score thereby costing you a higher interest rate on any loan you may have or want to have.
A delete means, have it removed from your credit reports, with no signs that it was even ever there. This agreement includes never having to deal with this again…FREEDOM! AHHHHH.
Follow these simple steps. These are the exact steps I take when I work with my private coaching clients. For a F.R.E.E. consultation call my office at 201-661-8330.
1. Call the Collection Agency
2. Ask a representative:
• What is the total amount due?
• What was the principle amount owed?
• Who is/was the original creditor?
• When was the date of last activity (when the last payment was made)?
• Was the account purchased by any institution?
• Is the collection agency hired to collect by the original creditor?
3. Action Steps- Think like “Let’s Make A Deal”
Is the debt older than 5 years?
If yes, get a deletion letter after the principal debt amount has been paid in full.
Is the debt older than 5 years?
If no, offer a settlement anywhere from 30% -50%, with an agreement of deletion after patment.
Be prepared to provide proof of why they should accept such a low offer. A Credit Report, Termination Letter, Unemployment Stub etc.
4. Remember that debt collection representatives usually get paid when they bring in money. So you both really have a vested interest. When you offer to settle a debt, start very low. I provided industry standards above.
5. If the collection company refuses, wait until the last 5 days of the month and then make another offer, this time slightly higher. Do not sound too anxious. You do not want them to try to get more money from you.
6. Make a final offer. If they refuse, tell the debt collector you will settle the debt on your own with the original company you held the account with. Make it sound as if you will only settle with them if they offer to delete your debt from all major credit reporting agencies.
7. Contact the company you owe the debt to and ask them if they will agree to your delete offer.
8. Again, with any agreement, ensure you receive a letter of agreement first, prior to sending in any money. Read the letter carefully, especially the fine print.
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