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This is the way it works in California, your states laws may vary.
It depends on the amount owed and your debt to income ratio. There are debt councilors available in every state, most consultations are free or sliding scale. They can tell you what the collectors are allowed to take and even advise you if you should do a debt consolidation, or for a fee have the debt adjusted and a percentage written off by the creditor. They will handle this for you, you will pay them a small fee every month and the amount needed to pay the creditors. This does effect your credit, but usually not as badly as not paying them at all, if that is how you are now situated, because the amount is negotiated. The councilor will be able to advise you what amounts each creditor is usually willing to deduct.
If you go this route you must pay the agreed amount every month or the creditor will take you to court and he will sue for the full amount plus interest and any fees including those from going to court.
Another option is to call the creditors, explain your situation and work out an informal agreement. Possibly they can stop tacking on late fees or high interest every month, as long as you send the agreed amount by a certain day. If for any reason the agreed amount can't be paid by the date due, call and let them know. The creditors are human too, they understand the situation millions of people are in right now and have been for months.
Any amount you can send is better than sending none, usually.
If whatever amount you can send is not enough to start chipping away at the principle of the loan, so the balance isn't higher and higher every month, you may need to file bankruptcy. This too will effect your credit in a negative way and it remains on your credit for several years. But if there is just no other way, sometimes it is what we have to do. The credit adviser will also advise you if this is your best option.
You have the right not to be harassed at home and work, you have the right to be talked to in a respectful manner and never verbally attacked. Anytime you call a creditor, get the name of the person who you are speaking to, first! If you find one to be particularly helpful find out if you can call this person directly in the future.
Good luck I hope things get better for you.
What else can I help you with?
What is the best way to pay debt collectors?
The best way to pay debt collectors is to communicate with them directly, negotiate a payment plan that you can afford, and make payments on time to settle the debt.
How do you pay debt collectors?
To pay debt collectors, you can typically do so by sending a payment through mail, making a payment over the phone, or paying online through the debt collector's website. It's important to keep records of your payments for your own records.
Where could one obtain helpful debt settlement advice?
You can obtain helpful debt settlement advice by seeking out the professional opinion from an attorney. They could work with collectors to help settle what you owe and lump it into one monthly payment. Many collection companies are wanting payment so they are more than likely willing to settle for a fraction of what you owe.
Is it better to finance an auto purchase with a small down payment and high monthly payments or high down payment and small monthly payments?
It is better to finance an auto purchase with a high down-payment and a low monthly payment, because it is less likely for you to fall behind on your payments and acquire debt.
Can a bankrupt company demand payment of debt?
Only if they cannot provide services to you that were paid for.
Can a debt collector demand payment verbaly?
Debt collectors are permitted to make verbal requests for payments and do so quite often by telephone usually in the middle of family dinner.
Can collectors make you pay?
No. Debt collectors contracted by the owner of the debt to contact the debtor for payment. In most cases they will say anything and harass you into make a payment. Depending on how their payroll works- If you do make a payment, they get a comission on the payment you make.
What should be included in a demand letter to pay debt?
A demand letter to pay debt should include the amount owed, details of the debt, payment deadline, consequences of non-payment, and a request for payment.
What should be included in a debt collection demand letter?
A debt collection demand letter should include the amount owed, the reason for the debt, payment instructions, a deadline for payment, consequences of non-payment, and contact information for the creditor.
What should be included in a demand letter for debt?
A demand letter for debt should include details such as the amount owed, the reason for the debt, a request for payment, a deadline for payment, and consequences if payment is not made. It should be clear, professional, and assertive in tone.
What is the best way to pay debt collectors?
The best way to pay debt collectors is to communicate with them directly, negotiate a payment plan that you can afford, and make payments on time to settle the debt.
How do you pay debt collectors?
To pay debt collectors, you can typically do so by sending a payment through mail, making a payment over the phone, or paying online through the debt collector's website. It's important to keep records of your payments for your own records.
What should be included in a demand letter to collect a debt?
A demand letter to collect a debt should include details such as the amount owed, the reason for the debt, payment deadline, consequences of non-payment, and a request for payment. It should be clear, professional, and assertive in tone.
What should be included in a demand letter for debt collection?
A demand letter for debt collection should include the amount owed, details of the debt, payment deadline, consequences of non-payment, and a request for payment. It should be clear, professional, and provide a means for the debtor to contact the creditor to resolve the issue.
Where could one obtain helpful debt settlement advice?
You can obtain helpful debt settlement advice by seeking out the professional opinion from an attorney. They could work with collectors to help settle what you owe and lump it into one monthly payment. Many collection companies are wanting payment so they are more than likely willing to settle for a fraction of what you owe.
Is it better to finance an auto purchase with a small down payment and high monthly payments or high down payment and small monthly payments?
It is better to finance an auto purchase with a high down-payment and a low monthly payment, because it is less likely for you to fall behind on your payments and acquire debt.
Can you be held liable for a deceased credit card debt if you made the minimum monthly payment for them and were not a joint holder?
No, making a payment(s) on someone else's debt does not legally obligate the payer to continue to pay or to assume the debt as his or her own.
