Is it true that if you pay a creditor something, no matter how small every month, they can't report....?

Question

the debt to the credit bureaus. For instance if I pay $1 a month on a $2000 debt I could keep it out of collections.

Answer 1

With things like medical bills this is usually the case but most, if not all, credit card companies require that you pay the minimum amount. You could try calling the company and tell them you're having trouble making the minimum payments and they may be able to help you out, maybe by lower your rates or minimum amount.

Answer 2

Obviously you don't read the fine print

You are obligated to pay at least the minimum payment  

Answer 3

no thats not true.

they probaly will send you to collections if your pay 1.00 a month. they wouldnt want to deal with that joke

Answer 4

Stop and think about it.  If that were true then why not everyone simply pay a dollar a month on anything they owe? No company could survive like that which is why they require a minimum payment on the balance to maintain a positive cash flow.  

Answer 5

Try to pay your bills.  I feel if they were good enough to lend it to you, then you should try to pay it back:)  If you are having a hard time, then make a plan and let the creditor know it.  Hopefully, they will rock with you:)

Answer 6

No, because there are minimum payments

If I owed you $2000, would you accept $1 a month as pay-back?

Answer 7

That's an urban legend.  There is not such thing as "good faith payment".  If you failed to pay as agreed, you defaulted on your contract and the whole debt is due and payable immediately.  The creditor does not have to accept any payments.  They can demand the full balance.

Making small payments only keeps re-setting the Statute of Limitations (SOL), the timeframe to bring lawsuit.

Answer 8

They can report what you do not owe. Paying $1 on a $2000 debt doesn't change the fact that you are still defaulting on a $1,999 balance!

Answer 9

No that is not true, anytime a person violates the terms and conditions of their creditor they can be sent to collections.