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I’m trying to clear up a couple of things on my credit report. I had a couple people suggest to just pay half of the debt. Does it work?and is there negotiating involved. Then what do I do afterwards to clean it off my credit report. or is that even possible. Thanks soooo much in advace for your help.=)

8 Thoughts on Can you offer to pay only half of the debt to a collection agency?
  1. Reply
    November 15, 2011 at 10:12 pm

    You can offer, and they can refuse. If they accept, your credit report will still show a write-off of the difference, and that will dog you for years.

  2. Reply
    November 15, 2011 at 10:59 pm

    why not pay off the whole thing?

  3. Reply
    November 15, 2011 at 11:13 pm

    Most of the time, by the time a debt gets to a collection company, a creditor has already charged it off and the paper was sold to the debt collector. Your credit is thus, already affected. The debt doesn’t go away. In this kind of economy, a lot of creditors will take what they can get and minimize their losses. Make the offer and back it up with logical reasoning and they may negotiate with you.

  4. Reply
    November 15, 2011 at 11:21 pm

    You can always negotiate. Paying less than the full balance will reflect that a settlement was made and will not show up favorably on your credit report. It will be noted “creditor settled for less than total debt” or something to that effect. Do not listen to anyone who suggests that you try to force a creditor to remove it from your report entirely. A collector may say they will do this but legally thay cannot. That would be falsely reporting the payment history of that debt. The time to negotiate is as soon as someone knows they will be unable to repay a debt, not after it has gone into collection.

  5. Reply
    November 16, 2011 at 12:17 am

    kckid2 is right on the money. In negotiations start low and go higher until you find some common ground. Trust me they won’t be offended. If you can, ask for a “pay for delete”. You will need to get it in writing in the mail from the collection agency (if they agree). Most likely to get this you may have to agree to pay a little more, but what that does is removes it from your credit report completely. Not too many people know about that trick and it does work (if they accept to do it). The creditor has the right to have it removed from your credit report. Anyway, it can’t hurt to ask them about it.

    For other credit repair tips, see –

  6. Reply
    November 16, 2011 at 1:08 am

    You can definetly try, and depending on the type of debt and how old it is, it may work.

    Just make sure they agree to remove the listing from your credit report (completely legal, no matter what Olive says) so your credit score is not hurt any further.

  7. Reply
    November 16, 2011 at 2:05 am

    You can offer, and depending on how old the debt is, they may be happy to take it.

    BUT, make sure you get everything in writing by certified mail, and make sure it says “settlement without recourse”. Then keep that letter for life.

    To clean it off your credit report, you simply have to wait 7 years.

  8. Reply
    November 16, 2011 at 2:22 am

    The first thing to be aware of is you will not be able clean up your credit report after settling a debt unless there’s an error in what’s reported. With that said, you want a CONTRACT with that collection agency, not a verbal agreement… and you are NOT to give them your bank account information. A collection agency is not going to settle with you with payments. It will have to be a lump sum amount that you pay them (money order) upon receipt of a letter which specifies it is “complete settlement for the debt” You will not able to settle a debt with an offer to pay weekly or monthly. Offer them what you can afford to pay in a lump sum, get it agreed in writing, and then you wait seven years for it to fall off your record. You may offer half and they may say 75% … be upfront about your finances. If you are near bankruptcy, tell them. Remember they can always garnish your wages and get the full amount so don’t offer to do what you can’t do. They sorta have the upper hand in alot of cases. Again… no verbal agreements and never give your bank account information to them.

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