Collection agency help

[Kacy]

I owe 5k to american express from my wedding and other stupid things things that i bought. I couldn't pay it for awhile and now Mitchell N Kay has taken over the debt. When I 1st talked to them they offered me a settlement for 50 cents on the dollar so it turned out to be about 2 thousand something. I was going to sale my car to pay for this debt because i was being given a company car. Well my expedition won't sale for crap because of gas prices and no one will offer me what it is worth. I havent spoken to Mitchell N Kay again and they left a message yesterday saying that was the last call that they were going to make and a decision would be made. What should I do from here? I don't need to hear that I shouldnt have let it get this bad because I am aware of that. When you cant pay somehting what are you supposed to do? If there is anyone with any knowledge in credit collections, I need advice! I can't pay 5k by the end of the month! They aren't very willing to help either.

[dolphin2253]

Take them what you can to show that you are trying. Make sure you get receipts for every dime you give them. After that continue to pay as much as you can. If they do decide to take you to court this will show that you are trying to pay the debt. Good luck.

[katiej47]

Call them up and ask for their billing address. Tell them you are sending them a check. Then send them every dime you can spare this month. Do the exact same thing next month. And the following month, until your debt is paid off. Agencies like these like to say that they don't hold your "account" long enough to accept payment plans, but that's bull. If you keep sending them money and they keep cashing the checks, then you have entered into an unsaid agreement where you will pay what you can each month. You will have to pay back the entire $5,000 though, not the settlement amount.And by the way, taking the settlement amount really destroys your credit. It's the equivalent of having your car repossessed. So, don't do that. Pay back the full amount every single month and don't ever, ever miss a month. Even if it's only $50.

[yaska]

When you are dealing with debt you should always keep in touch and let them know you are not ignoring them and that you are looking for ways to pay it off. They get angry and figure you are out to cheat them. If you are unable to come up with the money or a suitable salution to paying off the debt they only way out is to declare personal bankruptcy, which means you will probably be unable to get any credit cards etc. and any assets you do have will be sold to pay the debt. Try and make a deal with the creditor to pay, take a loss on your car and sell it for what you can get and pay it to the credit company and show them you are trying to pay off. In the long run the money you pay from the car will save money on interest charges. Good luck.