Paying Off Charged Off Debt
I have several outstanding credit cards that have recently been turned into charged off debts. I am getting close to having the cash to pay these debts off. What is the best way to go about this so that I have a chance of getting the charged off status off my credit report? Also, if anyone has any expereince dealing with the collectors with charged off debt I would like to hear from you.
Thank You! 
First of all remember this:
If it is still with the original creditor and the will restore your good standing by giving you a good credit rating or restoring our credit line in exchange for payment, then by all means negotiate. However, if they do not want to play ball, tell them that you can take that many and pay other creditors. If they still dont want to work with you then wait until they send it off to a collector. When it goes to a collector and you recieve the first phone call or dunn letter in the mail:
DO NOT NEGOTAITE
DO NOT NEGOTIATE
DO NOT NEGOTIATE
DO NOT ADMIT
DO NOT ADMIT
DO NOT ADMIT
I hope this makes sense for many reasons. First, you never want to give up your positon of innocence, even if you do owe the debt. Now I know you are asking yourself 'WHY" wouldn't I just go up and admit that I owe them money. Well, first of al, collectors are 3nd party firms, who were never a part of the original agreement in the first place. Were not talking about secured debt ,in which mortgages or notes are assigned all the time, much like stocks being traded. Instead, we are talking about unsecured instruments that have nothing more than a promise to pay back. Never mind the fact that they charge these those crazy compounded interest rates, to offset the costs of those who defualt and they are fully aware of the risk of an unsecured debt to begin with. THen they sell the right to collect to some third party scavenger who thinks that they have a right to call and harass you everywhere you go and even call your employer and relatives if necessary. they love to use cheap tactics to make you feel bad for not having the debt and use 'cult' like terminology when asking you for payment, like "hey dont you have a grandmother on SSI who can let you borrow money" and so on. SO, lets not feel bad for the third party collector who will buy your debt for pennies on the dollar..Instead lets come up with a game plan to beat then and make them wish that they never dunned you in the first place..
If the creditor wont work with you, then ask me how to work with collectors once they get it. It shouldnt be long, since you are obviousily at the 6 month or more marker on your defualt status..
Let me know how it turns out...
If your loans area already charged off, you should expect to be able to pay no more than 50% of what is owed to get the creditors agreement to delete any reference of your account with them. This includes all derogatory information. You will need to be patient. Don't admit that you have enough funds to pay 100% of the debt. Good luck!
has this situation already been puting a ding on your credit since you went into drfaul in the first place? it will continue for 7 years as i under stand things.
John
Just wanted to clear up my question. All the credit card debt has been charged off and turned over to multiple collection agencies. There are quite a few of them-- all generated during graduate school! Some of the collectors have recently sent me offers to "rehabilitate"my credit with them, by transfering the balance of the debt to a credit card (from them) and as I pay off the debt, it will restore a credit line. I'm really not looking to hold on to these credit cards, but it seems like it would look better for my credit report and score to take this kind of offer than to simply pay off the debt and close the account. In the end I really want to restore my credit and score. Can I expect that when I make an agreement with them that I for the amount that they will also agree to update their information to the credit report agencies? how can i be most certain to get this done in this manner? Any advise is very appreciated. Thanks
I've not seen it done personally but I once read a book that recommended building a relationship with a rep at the original creditor and getting from them or thier manager, in writing, a promise to report the debt as incorrect to the credit reporting agencies if you will pay in full. So, after you've recieved the letter and paid, you dispute the accounts on your credit and when Equifax, Transunion, etc. try to verify the account, the creditor doesn't respond in the 30 day window or responds that the account is not valid thereby removing the record from your credit completely.
Chip