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I recently opened an account with TransUnion to check my credit score and figure out how to pay my debt. I have found that I have a debt under $ 1,000 i need to pay. Is it better to pay this debt over phone or by mail? And how do I go by doing this and making payments, maybe lowering the amount owed?

1 Thought on What is the best way to settle debt?
  1. Reply
    Brandie N
    May 10, 2013 at 8:57 pm

    Call the company and tell them you would like to settle the debt in exchange for the debt being removed from your credit or ask they they remove any bad reference from your credit report. Sometimes they won’t remove it from your credit but they will remove the bad reference. Make sure whatever settlement you make you get it in writing. For example if you call the company and they say they will settle it for $ 800.00 and you are agreeing to pay that for them to remove the bad reference ask that they fax you a agreement or mail you one and then you will make the payment. If you make the payment with a agreement they could sell the remainder to another collection company or they could not remove the bad reference from your credit so you want to make sure and get it in writing. Many times if they agree to settle for a lower amount you can not make payments you must pay it in full so keep that in mind. Any amount forgiven by a settlement can be considered income for tax purposes too by the way. I would not pay the debt by phone. I would pay it by mail with a money order so that you have the stub as proof of payment. Good Luck!

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