What should I do about my credit problem?

Question

Okay, so I am in a bit of a predicament right now. Not long ago I lived with a friend of mine and we decided to get an apartment together. Unfortunately things didn't work out and he up'd and took off without notice. I paid for the utilities and the rent in full thinking that everything was taken cafe of, but apparently that wasn't so.

I just got a call from Cash Collectors saying that I owe them over six hundred dollars in some fees. What I got was that even though my friend WAS the first name on the list under the contract of the apartment for rent I am the one that is going to have to pay for the fines.

So I was completely unaware of there being any fees let alone that apperently they have been trying to get a hold of my ex-roomate and I for months now. But since they can't call HIM, and they got a hold of ME, it is up to me to pay it off by "today." Fortunately I made a deal with them so that they could extend the fees before they ruin BOTH our credits until next Friday...

I got a hold of my ex-roommate that I haven't talken to in over a year and he refuses to pay for any small piece of the fee, and now I don't know what to do. I don't have that kind of money on me right now, and it isn't fair as it is that I Have been the one paying for everything else...

Any ideas?

(I would just not pay and hold off on paying so that HIS credit would crash, eventually leaving him inable to rent another apartment. Except, if I do that, it affects me as well...)

Please help.

Any ideas...?

Answer 1

If the debt is already on your credit report, which I suspect it is, do not negotiate with the collection agency or pay it at this point. The damage is already done and it will stay on both of your credit reports for 7 years whether you pay it or not. Since you have your ex-roomates contact information, you need to forward it to the collection agency. Let them bother him as well.

Answer 2

More than likely it has already hit yours and his credit if its at a collection agency. And unfortunately they can choose to come after you or him or both, if you end up having to pay it your only option may be to sue him in small claims.

Answer 3

Collectors always trick you into believing that you have to "pay now or else". Balderdash. YOU hold the money and they want the money; it's not hard to see who's boss here.

One mistake you made was to positively acknowledge the debt. But that's done. Arrange for a payment plan but only after getting a letter stating that the account will not be reported to the bureaus as late or in collections. If already reported it should be deleted or at minimum marked as "paid or paying as arranged" or other words to that effect.

Make sure everything is in writing before making a payment. You have up to 30 days of initial contact to dispute a debt, after which time it can get reported to the bureaus. This is a window of opportunity you can take advantage of, but if already elapsed you can still negotiate to keep your credit report clean.

And forget about your former roomy, he doesn't seem to care. Take care of yourself. The price is steep but the repercussions may be worse.