Settling collections for pennies on the dollarPosted On: September 2011
THE KREDIT KORNER WITH THE KREDITGURU, GARY NOVEL
Editor: Tiffany Brewington
Q: I heard that you can settle collection items on your credit report for pennies on the dollar? Is that true? How do I do it?
A: If you have a large debt, you can always work out what is called a "settlement" with the company you owe the money to. Simply contact the company, admit you owe the debt, and tell them that you have a little money to pay off outstanding bills. Ask them, "What's the best offer you can give me if I can get you the money within 10 days?"
For example, if you owe $1000, they may say they will accept $700 to consider this collections debt "settled in full." Also, you can always "counter" the offer by telling them you have $600 in your hand right now, and will they accept that?
NEGOTIATE, NEGOTIATE.....it can't hurt!
Settling a collections account for pennies on the dollar has the same affect on your Credit Score, and will appear as a "paid in full" account.
For all your credit-related questions, contact Gary Novel, President of Kreditguru, Inc at 630/624-9557 or firstname.lastname@example.org
Posted On: September 2011
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