Pay To Delete Negative Items From Your Credit Report

One of the various debt cure services provided by debt relief companies that deal

with the consultations regarding credit card debts and credit crunches led by unaffordable outstanding and overdue, is credit counseling which emphasizes the importance of removal of negative items from one"s credit card in least time possible through varied legal means that often follows the professional debt reduction formulas like debt settlement , debt consolidation etc. One of these methods is "pay for delete" which is a mediated settlement on debt, wherein the creditor agrees to change the way a debt is reported in exchange for payment. Cleaning up the negative blemishes off your credit card is most desirable for all debtors, and in case the debtor has some cash, it becomes the easiest task by paying the creditors or the collectors for the purpose of eliminating negative items from their credit report. The concept of Pay for Delete can hardly be denied or rejected by the collection agency, as it is profitable for both the parties. When you agree to pay them the entire money or even a part of it, would let them make a handsome profit by this process, and by getting the negative account deleted from your credit report assures a handsome increase in your credit score. Even if the debtor makes 25% payment to the collection agency, still both the parties have nothing to lose. For the debtor"s information, most bad debt companies pay or receive literally pennies on the dollar for the debts on which they are trying to collect. The type and age of accounts determines the amount that the companies would pay for bad debt, such as:Debts that have recently been charged off: 6 to 7 cents on the dollar. Accounts that are slightly older and on which a collection agency or two has already taken a whack: 1.5 cents to 2 cents on the dollar.

Years-old, out-of-statute debts: A penny or less.

However, to make the most of this deal, a debtor should follow the right and apt technique of negotiation and communication with the collection agencies, as the money goes directly to them. Make sure that all forms of correspondence and communication regarding the negotiation have to be in writing with proper receipts and evidences. Situation may arise when you are aware of your particular debts and outstanding, but the collection agency fails to furnish the debt validation proofs and other documents of acknowledgments to claim that the debts belong to you. At such cases, you may write a formal professional letter to the collection agencies stating that the documents of debt validation and debt acknowledgment is not furnished by the agency, but still you agree to pay the full amount (or the amount affordable by you) to the agency instead of hiring expensive debt attorneys to sue them in court. Next, propose your offer as a business deal, reminding them of the handsome profit they would make out of it. As most of the agencies pay pennies for dollars to buy your debts from the original creditors, the offer would seem to be much alluring financially. Thus you may soon expect to receive a well-signed and written acceptance of your offer from the collection agency, in exchange of eliminating your debts as well as negative items from the credit report.

by: alexdrek

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