collections agency

[Twista]

Well, i had a down time in my life where my something important for life went wrong and my bad part time job wasn't enough $$$ to pay for it. So, i had to stop paying this 1 non important thing for 2 months. Well, they closed my account and charged me the cancellation fee and sent my bill to an collections agency.

So, i had 0 zero credit history when i started this phone contract so im guessing i have a negative credit rating now.

When phone companies charge you the cancellation fee and and send the account to an collections agency. That means there done with you right? Its now up to the collections agency to collect the money. If i dont pay for some months will the collection agency keep adding charges on my account or will it stay the current amount till i pay it. I have to talk with the collection agency on how to do this and the phone company told me i could re active the phone with them and i would just owe the agency so i wouldn't be charged the cancellation fee because im keeping the account with the phone company. <-- that part is after i talk with the agency.

Hopefully this make sense.

Thanks

 

[Twista]

Well i mean do collection agency's put a monthly interest rate on the total due from the company that you have debt with.


thanks

 

[jagec]

Sometimes it can actually be the opposite...companies are willing to collect a smaller sum than the initial fee, because any money is better than one at all.

So in a sense, if you don't care at ALL about your credit history, and the damage has already been done in terms of late fees, it might even be an advantage to wait it out for a little bit, and then offer a smaller sum as an opening bid.

 

[Casawi]

Originally posted by: jagec
Sometimes it can actually be the opposite...companies are willing to collect a smaller sum than the initial fee, because any money is better than one at all.

So in a sense, if you don't care at ALL about your credit history, and the damage has already been done in terms of late fees, it might even be an advantage to wait it out for a little bit, and then offer a smaller sum as an opening bid.

Yeah he is right.

I have been thru this when I was in college. I maxed all my credit card after my first year of college, then didn't make any payments until I graduated. I actually got a couple sweet deal such as 80% in monthly settlements with no interest. This worked out great for me since my owed amount wasn't much. I finally just paid all of my credit cards off.