Discover How To Repair Credit And Recover Your Own Credit Worthiness

What happens to debt that people are unable to pay back? A lot of the time, the banks just have to stamp them as uncollectable and write them off. They just give up trying to get those people to pay up. People who owe money and who cannot pay it back have traditionally been able to heave a sigh of relief to know that the bank has got off their case. But not anymore. The banks have found a way to give these uncollectable loans a new lease of life; almost. They call these zombie debt these days.

After deciding on a total debt amount that is good for both you and the debt collector, you can negotiate payments. Realize that the Debt collection companies has access to your credit reports and employment information. They know if you have other open lines of credit that can be used to pay off your debt with them.

Credit card cases are typically what I call “document” cases. The credit card company, or collection agency, needs documents to prevail in court. Most often, they need a cardmember agreement, terms and conditions, monthly account statements, and if the debt was sold, a copy of the Assignment. (Assignment is a contract between original creditor and purchasing debt collection company). When a debt is sold, at least when it is sold for pennies on the dollar, the documents often are not sold as part of the deal. Most of you are thinking, “That can’t be true, can it”? It is the truth. Think about the price of the debt. A collection agency pays pennies on the dollar, how much can they actually get? Often, its just a name, address, phone number, account number, balance, and not much else.

I know this is hurting my credit report; LVNV has bought an old debt bill and tried to unsuccessfully to sue me for lots of money. When they did not show up at the hearing they requested I won by default. That was last summer but a recent check of my credit report shows they are still on there creating havoc.

How you pay the debt is another key factor. First, find out if they are willing to accept monthly payments to pay the debt and if so, how much per month would it require and how much of the debt will be taken off if you pay as agreed upon. Also, you should find out how much of the balance will be taken off if you pay them in full with one payment. This type of payment is desired by collection agencies because they are getting money quickly and this reduces the risk of having to call back for payments or payments bouncing in the future due to change in checking accounts. Use this tool to negotiate your balance owed as it should give you a much clearer picture on what it would take to pay the debt.

Alcohol sales: People are depressed and looking to drown their sorrows. This is not something that I actually condone, but it is a fact of life. Why else would alcohol be the best seller in depressed neighborhoods? People also purchase alcohol to entertain at home because it is far less expensive than spending an evening at a bar. I noticed just a few weeks ago my supermarket has moved around a few shelves. Under closer inspection, it turned out that they had eliminated about half of the housewares aisle, but back on baby food, and added another aisle of alcohol. If that’s not a sign of where the money is, I don’t know what is.

A consumer debt collection firm will always be aggressive in trying to make you pay off your debt. That is why debt negotiation services are here for you. Opt to have their service and be sure to have an ally on dealing with debt together with those collectors. Manage your financial situation and exercise your rights as a consumer.