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Smitty9110

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Old debt pay off steps and advice please
Me and my husband built of some pretty bad debt after our daughter was born and we are now hoping to pay it off, but do believe the credit card companies sold the debt, how should we go about paying off each debt? Also how do we find how much is owed? Would it be the balance or past due balance? Any advice will help.

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First get a copy of all your credit reports. Next, make a list of all the negative items that are hurting your report. Then, set aside some money and pick out a couple of accounts you can payoff in full. The best method is to do a "pay for delete" agreement. This is when you contact the collections agency and negotiate a deal that if you pay the debt off completely, in return for them to remove the item from your credit altogether. If they agree to this, make sure you get this in writing. (They don't have to agree to this legally so be polite) If you can't get a pay for delete agreement established, next step would be to try to make a settlement.... This is when you negotiate to pay less than what you owe and the creditor will give you a 0 balance. This is good because the collections is showing paid, however it stays on your report until that 7 year fall off date. Try to pick the ones you can afford to pay off first....... Hope this helps.

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Get your current credit reports.

Pull a copy of your credit reports.  You'll be able to see all your debts, if there are collection companies they were sold to, and what the balances are.  Creditors compntact information is on the report as well.  There is a ton of advice in these forums on other threads about dealing with creditors i.e. get everything in writing, be careful with payment plans tied to your bank account etc.  First step is to find out what you owe and who you owe it to.  Pull all three reports since many collection companies and some creditors don't report to all three bureaus.  Organize this information and start doing homework about best practices to deal with your debt, including looking into talking with a professional.

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