Making Payment Arrangements with a Debt Collection Agency
If your son discovers that he indeed still owes the money, before he agrees to any payment arrangements, he will need to look at his budget carefully. This will help him consider what he can afford to pay, without falling behind on other payments.
The debt collector may also offer to accept a settlement from him for a reduced amount. If the offer is originally made verbally over the phone, have your son ask to receive it in writing from the collection agency. He should wait to make a decision whether or not to accept the offer until he receives their offer letter outlining the terms. Once he has received the written offer and agrees to it, only then should he forward the required payment.
As part of the settlement terms, he can negotiate how the agency reports the debt to the credit bureau companies. A debt that is either paid or settled in full will reflect more positively than an unpaid debt that has been written off.
If your son would like help looking at his budget and his debts, contact us for a free, confidential appointment. One of our Credit Counsellors would be happy to review his financial situation with him and help him get back on track.