PHOENIX, AZ — (Marketwire) — 01/18/12 — Making the decision to start the debt settlement process is a big one, so make sure you go into it prepared. “The last thing you want to do,” says Kristy Welsh, “is get the ball rolling only to discover it-s moving in the wrong direction.”
1. Avoid phone calls with collection agencies altogether. Not only can the reps be bullies (and who needs that ?), but phone conversations don-t carry the same weight as a written agreement.
2. This is the only means you have of proving that the collection agency received your communication.
3. Never communicate a sense of desperation or urgency to settle your . The more you imply you-re willing to take your time, the better.
4. Most collection agencies only get pennies on the dollar for the debts on their books. Getting 25 percent of the debt from you still makes them a tidy profit.
5. Once your debt is paid in full, there is nothing to stop a collection agency from from your report. You have to ask. Get it in writing.
6. If you have negotiated a deal with a collection agency, make sure you have a letter outlining the agreed-to terms.
7. Collection agencies may try to talk you into making payments on your debt. They will not only charge you interest, but it may also restart the . Save up and only start the debt settlement process once you have a lump sum!
8. Record every communication you have with the collection agency, including dates and types of correspondence.
CreditInfocenter.com was founded in 1997 as a one-stop destination for consumers looking for free advice on and . Creditinfocenter Founder Kristy Welsh is the author of several books on personal finance, including Good Credit Is Sexy, a tongue-in-cheek guide to managing credit.
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