Repairing my Credit - Better to have debts recalled?

Question

I'll be honest. I made some stupid decisions during college and have approximately $2000 in debt that is now being handled by collection agencies. I'm getting ready to start repairing my credit and am wondering if it would be better to try and ask the original creditors to recal the debt and pay it directly through them, or try to work with the collections agency?

Answer 1

Original creditors will usually refuse a request to recall a charged off debt. It is just too much of a hassle for them unless the amount is huge. It doesn't hurt to ask, but this is a long shot.

You are restricted to working with the collection agencies at this point. Just make sure you send them a debt validation letter before you pay anything. That will protect you from paying someone who doesn't legally own your debt.  

Answer 2

If it goes to collections they will tack on their own charges, then if they get a judgement and they will the court will tack on court charges and attorney fees and suddenly $2000 is more like $ 5000.

Always negotiate with lenders up front BEFORE it gets that for, people think they will go away and they don't it just gets worse.

I know I have been there.

and after the judgement comes years of wage garnishment that follows you from employer to employer and that is embarrassing and can keep you from getting some jobs.

Credit Repair companies are RIP OFFS, they can't help.

Consumer Credit Counseling will result in  a SLOW PAY credit history.

If you have alot of other bad debt declare bankruptcy, if not, negotiate a settlement, If you owe, 2000 you may offer to pay 60% of the debt and call it settled, get it in writing or they can issue a charge off for the remaining balance , even though they agree to settle at a lesser amount. You'd only have to pay $800.00 at 60% to get this settled.

Answer 3

The original creditor is simply not going to go through the trouble of taking back a debt they've already sold to a collection agency. Just call the current creditor and make payment arrangements that you can stick to.