Is there a legitimate business I can pay to have them organize and clear up my debt that's gone to collections?
June 22, 2010 
2 Comments
imsomarinky asked:
I have just under $3,000 in debt, all of which has gone to collections for lack of payment. There are several debts all between 4 and 7 years old and all are unpaid medical bills. (ambulance rides, emergency room services, etc) I can now afford to pay it all off but my lack of experience with creditors makes me weary to deal with them directly. Are there legitimate and trustworthy services out there that I can pay to do all the work for me? That's the only thing stopping me from paying these bills! I don't want to get screwed!
I have just under $3,000 in debt, all of which has gone to collections for lack of payment. There are several debts all between 4 and 7 years old and all are unpaid medical bills. (ambulance rides, emergency room services, etc) I can now afford to pay it all off but my lack of experience with creditors makes me weary to deal with them directly. Are there legitimate and trustworthy services out there that I can pay to do all the work for me? That's the only thing stopping me from paying these bills! I don't want to get screwed!
You can do this yourself blindfolded.
Why pay someone else to do it.
Go to the library or the bookstore and get a book on the subject.
It will tell you step by step what to do.
You start by settling – making an offer for 1/2 of what they are asking for, then you negotiate a "pay on delete" to have it removed.
You get it in writing, then you pay (not by check), by money order.
Debts over 7 years old – just have them deleted from your report.
Type "old and obsolete – passed statute of limitations".
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Judy's advice is good, but the statute of limitations can vary from state to state, so check your state's laws first about your obligation to repay. In my state of residence, for example, a debt isn't considered too old to collect until ten years have passed since the last payment was made and/or the debt was incurred, whichever date is more current.
Try to deal with the original creditor instead of collection agencies. When you pay a collection agency, you are also paying their fees in addition to the debt, so you may be able to knock off some of what you owe that way. And if you do, make sure you keep all receipts and records of payments so you can prove to the collection agencies that the debts were repaid.