Debt collectors:What should i pay?

Question

Ok here is the thing a have a debt on a credit card the last pay off amount was $900.00 now its 1300.00 which amount am i obligated to pay?

Answer 1

Interest and fees continue to accrue.  It's probably $1300 now.  Is this in default and turned to collections?

You may be able to settle for less than that full amount.  If the debt is over 3 years old, offer 25%; 2 or 3 years old, offer 50%; less than 2, offer 75%.  Lump sum gets the best deals.  Payment plans have to be short term.  Get any settlement agreement in writing and keep it, along with your payment proof, forever.  Do not give the collector direct access to your bank account.

Answer 2

$1300.

And now that you see how much it grows with interest and fees, ask yourself this:

"Why did I want to get a credit card in the first place?"

Answer 3

It depends, are you making the minimum payments or have you had numerous letters and now they are calling in your debt?

The company can add charges after they have given you a chance to pay if you have missed a payment etc but if you have ignored letters and they have sent a debt collector out to you then you have to pay the fee that they charge the credit card company too visit you too. Try contacting the credit company and explaining your problems and asking them to set up a payment plan. If they will not then contact citizens advice or a similar organisation. If they refuse an offer of payment from you then it does not look good on their part if it ends up in court.

Answer 4

As long as you have a balance, you can have interest adding on.  If it has been placed with a collection agency, they will almost always add on collection charges.  Contact the collection agency, request a settlement letter with the stipulation that you have so long to pay & they will remove the line item from your credit reports -- all of them!

A lot of places will agree to remove the collection history from the credit bureau they usually use & then put it on one of the others.  Perfectly legal if you did not get it in writing before you paid.  Also, never, ever, no matter what, NEVER give your personal banking information to a collection agency.  I have seen where someone agreed to a settlement, did a check over the phone for the settlement, received a paid in full letter & then had another charge for the after settlement balance run as a seperate check over the phone.  I always buy money orders or prepaid, non-reloadable debit cards.  This way, only what you buy the money order for or what is put on the card can be taken to pay the bill.   Never just pay the collection agency what they want, always negotiate.  They are either on commission for a percentage of whatever they get or bought the bill for less than face value & then pump it up with collection charges.