People in Illinois who have outstanding credit card or other financial
obligations may be able to negotiate with debt collectors for a settlement.
If asked, many companies will agree to resolve a debt for a reduced lump-sum
payment. Although not every one is willing or able to settle for a reduced
payment, it is always worth asking.
Some debt collectors work for creditors on a contingency basis and only
have a package of accounts for a few months. This means that the longer
a certain debt collection agency has had an account, the more willing
they may be to negotiate for a reduced lump-sum payoff. If a debt collector
refuses to work out a deal the first time it is asked, it might agree
the next time. A person's account could also be transferred to a different
collection agency with more favorable settlement practices.
There are some types of debts and debt collectors that are more difficult
to work with than others. For example, debt collectors will seldom allow
medical bills to be settled for a reduced payoff because insurance contracts
often don't allow it. Even if a debt collector is usually willing
to accept reduced payments from account holders, a person's account
could be flagged for no reduced payments due to account activity.
Not every person who has
credit card debt has excellent negotiation skills or enjoys speaking with collection agencies
over the phone. While attempting to settle unpaid debts and improve their
credit, some individuals may wish to seek the counsel of an attorney to
assist with handling communication with collection agencies and helping
to work out settlement options.
"How Do I Get a Debt Collector to Negotiate With Me?", Michael Bovee, Feb. 9, 2015