What SHOULD I tell them?

JTuring · #1 (**permalink**) 07-18-2009, 07:03 PM

Help a dumb scared kid out

Alright, I owe around a grand for past school bills. I have suddenly recieved a pre-litigation notice on this bill and I'm preparing to recieve calls, or possibly call them ahead of time.

I've tried googling for advice of what to say, but everything I find seems to be trying to sell me an attorney or something. I DO owe this money, and I want to pay it AS SOON AS POSSIBLE, so I'm going to try to set up a payment plan. I already owe another collector money which I have already worked out a plan, and have $200 a week going to them. I work a minimum wage job, so if I were to set up a payment plan on this new collection, I would only be able to afford around $100 a week. Would they generally go for this?

What can I say when the call comes, is it at all a good idea to mention my current collection? And if not how should I respond if they think my proposed payment is too low? Lastly, I'm assuming if I know what I want to say, it would be good to call them myself first to get it all set up quickly, is this correct?

Edit: in Pennsylvania, if it makes a difference.

User Name · #2 (**permalink**) 07-19-2009, 04:18 PM

Quote:

Originally Posted by JTuring

Help a dumb scared kid out

Alright, I owe around a grand for past school bills. I have suddenly recieved a pre-litigation notice on this bill and I'm preparing to recieve calls, or possibly call them ahead of time.

I've tried googling for advice of what to say, but everything I find seems to be trying to sell me an attorney or something. I DO owe this money, and I want to pay it AS SOON AS POSSIBLE, so I'm going to try to set up a payment plan. I already owe another collector money which I have already worked out a plan, and have $200 a week going to them. I work a minimum wage job, so if I were to set up a payment plan on this new collection, I would only be able to afford around $100 a week. Would they generally go for this?

What can I say when the call comes, is it at all a good idea to mention my current collection? And if not how should I respond if they think my proposed payment is too low? Lastly, I'm assuming if I know what I want to say, it would be good to call them myself first to get it all set up quickly, is this correct?

Edit: in Pennsylvania, if it makes a difference.

I would not tell them about your other collection since it is none of there business. Be straight up and honest, say, here's what I can afford to pay and that's all I got. They will generally except anything as long as it's coming every month, especially now when so many people are defaulting. You should try to work this deal with the original company you owe to before it goes to collections but if it's already in collections, the collection company bought your debt for pennies on the dollar so they will take anything as well. If they will not except your terms, just let them know you have nothing else and can not afford anything else. I'm sure they will work with you. Do not provide any additional information other then what needs to be discussed. They do not need to know your life story, how much you make, or what other things you owe for.

Hope that helps and Good luck
Keep us posted

JTuring · #3 (**permalink**) 07-20-2009, 03:05 PM

Thanks so much for the response.

Well I called them up today. Even though I recieved a very harshly worded, intimidating letter with the snarling picture of a "REGIONAL COLLECTION OFFICER", they're telling me that I don't even need to deal with them yet, and it's still the school's responsibility. So I guess it was just a scare tactic (it worked

).

So now I've got it a payment plan set with the school and apparantly my credit wont be affected. *whew*

Now I've just got to learn to not be such a dumb-shit about my finances.

sapphirecapital · #4 (**permalink**) 07-21-2009, 07:20 PM

no, its not a scare tactic, try to get your credit file and look into it if the default on your side has already been registered, follow up with the school and try to get an extension, they can do that, it can get a little bit bureaucratic but if you have no income or low income there are remedies, you do not want this on your credit file if it can be avoided, otherwise if it is school debt you can have arrangements with the school as well, however remember if you pay less than you owe by agreement with the lender than you need to make reservations in your money to pay possibly applicable tax, because the difference between the loan and the agreed payment is considered income by the IRS

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