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ert1026 · Nov 14, 2007, 10:25 AM

What should I do, should I call debt collector to make payments arrangements or talk to a lawyer? Please help!

450donn · Nov 14, 2007, 10:27 AM

Guess you should make arrangements to pay your debt. Contact the creditor and talk to them, even 5 dollars a month is better than nothing.

excon · Nov 15, 2007, 07:25 AM

Hello ert:

It depends on what you WANT to do. Do you want to fight? Do you want to pay? Do you have money for a settlement? Do you have a job and bank accounts? Do you have good credit?

I don't know. We're not miracle workers here. The more you tell us, the better our advice will be. Otherwise you'll get dumb stuff like you did from donn.

excon

PS> A lawyer won't help, unless you don't owe the bill and you can afford to hire him.

JudyKayTee · Nov 15, 2007, 08:28 AM

Originally Posted by 450donn

Guess you should make arrangements to pay your debt. Contact the creditor and talk to them, even 5 dollars a month is better than nothing.

I can't imagine any creditor accepting $5 a month! There is often a misunderstanding that the debtor (you) can offer any amount to the creditor (them) and as long as you pay it, there is nothing they can do to collect more than the amount you offer - absolutely not true. The parties have to agree to a figure and then the debtor must pay it regularly.

I think "we" need more info about the debt and what your defense(s) would be.

excon · Nov 15, 2007, 08:53 AM

Hello again, ert:

JKT is right on. From a legal standpoint, they can sue you, AND COLLECT, the entire amount owed, PLUS legal fees and court costs, if you're ONE DAY LATE on your payments.

That doesn't mean they will, of course, but they have the legal POWER to do so.

Whether they WILL accept a payment in an amount OTHER than the agreed upon amount is a matter of profitability - nothing more. A $5 payment on maxed out credit card, even with low interest, would result in negative amortization. That means $5 won't even cover the interest and the balance gets bigger every day - not smaller. No bank is going to keep throwing good money after bad.

IF, however, the payment you make, even if it's lower than the agreed upon amount, will probably be accepted by your credit card company if it reduces your balance.

Most minimum payments BARELY do that, so much less than the minimum payment due will be as bad as a $5 payment or no payment at all. They'll just take your money and STILL sue you.

excon

ScottGem · Nov 15, 2007, 10:24 AM

The key here is we need more info. Is this a valid debt? How old is it? Can you afford to make a lump sum payment of at least half the balance? Can you afford to make meaningful monthly payments? Why did you default on the debt?

If you give us something to go on we can offer meaningful help.