It probably is true, that you may get somewhere with the creditor directly, but I know first hand many of them will refuse to deal with you now that you are in collections.

They will politely inform you it's with __ collection agency and their number is __.

It's a huge burden I know being able to settle a debt (especially at 10%) but I mean, if your credit is already shot by R9's, at this point it probably doesn't matter that is says $0 owed settlement made rather than $0 owed, account paid.

Hey Average_Joe,

You did what you felt needed to be done for your situation.
Your credit will only be screwed for the next 6 years until everything drops off your credit report.

What were the notations put on your credit reports after you settled with them?

I guess i know how to wheel and deal because i got 10%settlements approved.The lowest debt ranged from $3000.00 and the highest as $11,0000.I would never give those percentages to anyone knowing my credit is ruined and my R9 is never goiing to change again.I had every credit card out there but due to a job loss things happen in life.If a collection agency isn't going to settle for what i want it's matter of time it will go to a another agency and it will get settled sooner or later.I found i had to go to the creditor to get my settlement that i wanted and bypassed the collection agencies.

Settlements are not big with collectors or the banks for that matter, when the account is a "first assigned" debt. You still can however settle it, the amount will never usually be below 80%.

It also depends on the amount owed, usually if under $5,000. When it comes to Canadian Tire Mastercard debts (especially with MJR) it's 80% -- I don't work for them, but I know this from a source. The agency can also request a below parameter settlement offer, which needs to be approved by the creditor. This is usually offered to debtors who owe a high balance. The higher the balance, the more money you save (example) you owe $50,000 (at 80% settlement) you can save $10,000 compared to a $5,000 debt where it only works out to $1,000. And that is just a round figure, most collectors won't offer a settlement right to the penny, just to cover their own ass -- in case their math skills are not that wonderful.

When it comes to 2, 3 and 4th assign debt, collectors are more inclined to offer settlements, because at this point, the settlement amount increases to 70, 60 and even 50%

Me personally, love the type of accounts that have the 50% settlement and 50% commission quota. It allows me to set the bar high and work with the debtor to find out what they can truly pay back to their debt, but also helping them save some money in some of the interest that has accrued -- because don't get me wrong, I'm hear to help debtors just as I'm here to help my client collect their money as I am here to help my self put food on my own table.

Hey average_joe,

Thanks for that input...

You said it correctly... if you've got all R9's on your credit report, debt settlement isn't a bad option. It takes negotiation and patience.

I get a sense that you enjoyed the process.. This is an extremely distasteful process for many people.

I'm interested to know that you settled for 10¢ on the dollar.
I'm curious to know one thing... if your credit was in the toilet and you knew that the creditors weren't going to sue you... why go through that process in the first place. Why not just let the bad credit ride for 6 years until it's forced off your credit report?

I can't believe the stories i'm reading on here.I just settled up with over 6 creditors for 10 cents on the dollar,all credit card debt and it was tough at first but they caved in.They tell you they are going to take you to court and do whatever else they say but in the scheme of things that stuff costs money and who wants to waste more money on you after you defaulted on them.If you want to stop the harrassment buy a tape recorder and let them know they being recorded for legal purposes and watch how their tone changes when speaking with you from now on.I would do this everytime they call and don't forget everytime you have to let them they are being recorded and watch how their tone of voice changes and you will see the threats will stop and maybe the calls will to.If your credit is shot due to credit card debts and loans and the rating on your credit file is a R9 i wouldn't give creditors more then 10 cents on the dollar.If they tell you your rating will change after you settle or pay them that is not true.I have answers to people's questions to these matters if they need help.