My Wife's Debt Help

**lorraineb** · 03-09-2014, 01:59 PM

If they are all in collections, they will remain on here credit score even after they are paid off. In fact, paying them off will reset them (they will be marked as paid off, but will remain for another 5 years I believe on her credit as being paid off). If you negotiate, then you need to make sure that the agreement is that they are paid off in full and that the collection agency reports them as such if you negotiate a discount. All in all, it will be some time before her credit begins to get better.

**Brandon456** · 03-09-2014, 05:09 PM

thank you

So do you think paying them off is the way to go? They were already in collections for 4 plus years. Will they eventually go away if they aren't paid? And I read somewhere that it's possible to get the collection agency to agree to completely remove the debt history from the credit report if paid in full. Not sure if that is true.

**Eagle** · 03-10-2014, 04:16 AM

Originally posted by Brandon456 View Post

My wife and I married almost 2 years ago. I was in a previous relationship that went straight down hill, along with my credit. I've been through the whole bankruptcy fiasco, have several credit cards that are helping me boost my credit and two vehicles in my name. I'm always early on payments and sometimes pay a little extra. My wife now, I knew had some debt, but wasn't sure exactly how much until we started talking about buying a house. She was like me in the past and not good at all with money. I take care of all the bills and she gives me her check each pay period. I left my factory job and ventured in to my own business. I make decent money now and would like to get her old debt cleared. I have the list of all of the collections agencies and amount owed. My question is.... What would be my best route for clearing them? Contact each agency personally and try to make a one time payment agreement and clear one at a time? It's not an extreme amount that she owes, I believe it's somewhere around $5,000. But it's so many agencies, that I wondered if there was a way I could get all of the debts combined in to one large amount and make payments. And once they are all cleared, will they leave her credit report? Any info would be highly appreciated.

You can negotiate the debt with the collection agencies. You could even negotiate to pay 25 or 50 cents to the dollar she owes. Never hurts to try anyway.

As I understand it Lorraine is correct once you pay them off they will be on your wife's credit report for 5 years. You have the money though as you said you make decent money so go ahead and pay it off.

Remember:

1. Don't under any circumstances give them access to your (or your wife's) bank account.
2. Whatever agreement you come to make sure you get it in writting that the accounts will be paid off in full.

**Eagle** · 03-10-2014, 04:18 AM

Originally posted by Brandon456 View Post

So do you think paying them off is the way to go? They were already in collections for 4 plus years. Will they eventually go away if they aren't paid? And I read somewhere that it's possible to get the collection agency to agree to completely remove the debt history from the credit report if paid in full. Not sure if that is true.

Yes, pay it off. Not sure if it is possible to remove the collection status from your wife's credit history. If they promise anything like that make sure to get it in writting!

**Brandon456** · 03-10-2014, 11:32 AM

Called the Agencies

Thanks for your responses. I just finished calling all of the collections agencies and unlike all of the stuff I have read about negotiating a payoff at a lower overall cost, they would not except anything other than the full owed amount. Most of them turned out to be old medical bills from when her son had seizures as an infant. Is there another way to go about getting them to settle for less? Would you recommend contacting a financial/debt advisor of some sort? I don't know if I trust making payments considering the stuff I have read about them ripping people off. I also been told by some that the debts actually go away after a period of time whether they are paid off or not. Is this true? I really want this to be taken care of but I want to do it the smartest way possible, as well as the cheapest. Any more advice/knowledge is appreciated. Thanks

**JoeP** · 03-10-2014, 11:57 AM

Subscribe to Dave Ramsey's free podcasts. He has lots of callers with this exact problem, and his advice when talking with collection agencies usually goes along the lines of: "I'd like to pay you, but don't have the money, so right now you are not getting any money from me. Can we talk terms so that you can get your money?" If they say no, then thank them and hang up. At least they know they have a live on and may call you back later.

**Eagle** · 03-10-2014, 12:55 PM

Originally posted by Brandon456 View Post

Thanks for your responses. I just finished calling all of the collections agencies and unlike all of the stuff I have read about negotiating a payoff at a lower overall cost, they would not except anything other than the full owed amount. Most of them turned out to be old medical bills from when her son had seizures as an infant. Is there another way to go about getting them to settle for less? Would you recommend contacting a financial/debt advisor of some sort? I don't know if I trust making payments considering the stuff I have read about them ripping people off. I also been told by some that the debts actually go away after a period of time whether they are paid off or not. Is this true? I really want this to be taken care of but I want to do it the smartest way possible, as well as the cheapest. Any more advice/knowledge is appreciated. Thanks

They probably won't accept anything than the full owed amount. In a negotation you have to start high then go low. Don't accept the first no.

If you have a HDTV that's worth maybe $200. You ask me for for $300 for it. I say no way $100 it's a used HDTV. Hopefully we meet somehwere in the $200 range.

Call them back and tell them you want to settle this. But this is a debt that was incurreed years ago befoere you were married and you want to do the right thing but need them to work with you. Got to play the game if you want to save some money. If not just play the amount they ask for and be done with it.

**Gailete** · 03-12-2014, 03:59 PM

I would find it hard to believe that they will ever just go away. Probably not the majority opinion here, but I would pay what is owed as she agreed to owe that to whomever, whether for a sick child or not. The time to negotiate those medical bills was at the point they were made.

My Wife's Debt Help