I have credit card debt that I currently have payment arrangements with through a collection agency. The total amount of the debt when the collection agency aquired it was just under $4000. We've been paying $74.32 a week and now have it down to just under $3000. The plan from one that we'd discussed with the collection agency when first setting up the payment arrangement was that we were going to pay it down as rapidly as we could to take a large chunk out of it, then see about settling it for less than the full amount (I can't think of the exact terminolgy right now, as it's nearly 3am, but the gist is there) when we got our income tax refund. We are on good terms with the collection agency, as we've always made the payments as agreed, and have kept good communication with them. In fact, the original agreement was that for the first six weeks, we were going to do the $75.32/week as a deposit, then lessen it to $50/week once the deposit was made. However, when we spoke to set up the 2nd series of 6 postdated checks, we mutually agreed that since we'd had no trouble working the 75.32 into our budget, we'd just keep doing that amount. So...now that I've rambled, here's the question: I've filed my taxes and will have the refund within the next week or so. I want to negotiate to settle this in full for less than the currently balance due. Logically, I want the settlement amount to be as low as possible. How much can I reasonably expect or hope them to knock off the bill for a large lump sum to be paid to them like this? I know that no one give a precise answer or guarantees (outside of the collection agency), but I want to try and have some idea where I can hope to stand when I go to negotiate with them. If it helps, the credit limit of the credit card was $2000. Thanks for any input....
P.S. By the way...I know, get everything in writing as to the settlement agreement, coorespond via crrr, communicate with the original creditor as well to make sure they agree to the terms also, etc.
P.S. By the way...I know, get everything in writing as to the settlement agreement, coorespond via crrr, communicate with the original creditor as well to make sure they agree to the terms also, etc.