Visa - Bad Debt?

Visa - Bad Debt? Here is my question. I have a visa which was classified as a bad debt. I have since called and made payment arrangements with them. I told them I would pay them $100 a week and they said yes, it was a temporary agreement and if I made all of my payments faithfully I would be able to continue on this plan. I have made all of my payment every week faithfully for the past couple of weeks. I got a call from them yesterday saying that they were able to offer me a settlement and knocked off some money off the final price because they need to settle this by next month. I told them that was great and I would see if I could come up with the money. I can%26#039;t come up with it and I want to continue on my payment plan. the money I am giving them is a significant amount of my income, and it%26#039;s the only way I can pay this off. Can he take me to court if I am making my payment on time every week? Do I have to pay this all up front? HELP!

Additional Details

3 days ago

sorry - I have been making my payments since April, so a couple months, not weeks.

Best Answer

no they cant. They are wanting to change terms of agreements which you can say no to. Keep paying $100 a week which you are originally paying and if they are accepting the payments (which they always will), it shows the acocunt is being taken care of. You dont have to change the terms of agreement. They are dangling the carrot to pay lump sum right now and get some money off. If you can, that is good, if you can%26#039;t $100 a week is fine. I do hope you got a pay for delete letter. Get a pay for deletion letter stating that once debt is paid in full, it will be removed off your credit report. Get that letter on official letter head and signed by collections.

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Other Answers (5)

hi, for a start you can get a debt advice company to help you here,! In uk they have companies that help you liase with these people, and you just pay about well minimum amounts! You work out your budget and then basically they have to more or less accept what you can afford!
Good luck!
paying a 100$ a week is alot thats 400 a month. i thought the minimum on a CC was under 100$. It%26#039;s never good to pay just the minimun, but thats why its called a minimun, so they cant turn around and tell you u have to pay them 400 a month.
no, he cannot take you to court. you are making payments as arranged.

just make sure you continue to do so and good luck
If you have defaulted on this debt and if it%26#039;s within the statute of limitations, they can take you to court...regardless of any payments you are making.....$400 a month is a lot...if you can make this I wouldn%26#039;t think that they%26#039;d sue

Note: Be very careful about settlement offers from collection agencies....Debt collectors have some dirty tricks up their sleeves. Often they will offer a settlement over the phone to get you to pay X amount, then once they get your money they%26#039;ll deny that any settlement was made and resume collection activities or they%26#039;ll resell your account to another collection agency.

If you accept a settlement from them, get the terms in WRITING PRIOR to sending them your money. This letter should state that your account will be paid if full upon receipt of this money. Never accept verbal promises from them...If the terms are not in writing they are worthless. NEVER pay debt collectors by giving them your bank account info....Pay only via USPS money orders....photocopy for your records.

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