[Synacle1]

When dealing with bill collectors a little knoweledge is power. Don't let tactics like threatening litigation and/or bluffs about interest rates and fee's get you down.

First of all the Agency I managed was able to take citibank credit card debts and settle for as low as 70% for prime cards (less than 9 month default) and as low as 50% for sub prime (2-5 year after original default). Thats the standard for below blanket settlements for major teir lendors. If your debt is from retail cards and other second or third teir lendors like household and providian you might be able to get a settlement as low as 30% of teh current balance. If a collector is giving you grief or continuiously calling you you have the right to send a cease all calls letter. As long as you give the oppertunity to send letters they will.

As for the original question. All I can answer for is collection debts. With citifinancial, mbna, household, wellsfargo, and dinerclub (the accounts in our portfolio) your interest can be stopped completely if you stabalize the account by paying it up current or by paying a minimum of 30% of the balance as long as you agree to a payment plan. Just remember all decent collection agencts are going to quote you high because the more you pay per month the more they take home. Just be willing to hang up and stick to your guns.

(( and I concur, as a collector I'll admit we always talk out of the side of our mouth. get any arrangement in writing before paying a dime and watch your due dates or all deals are off))