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Have you called who ever is taking your account to collections and tried to negotiate more time or a payment plan? Explain that sending it to collections is ba
by SHOwnsYou 16y ago
Have you called who ever is taking your account to collections and tried to negotiate more time or a payment plan?
Explain that sending it to collections is bad for you and them. If you don't have the money, then you don't have the money. But if also have to deal with a collection agency then you'll have more stress to deal with. Also the collection agency gets a cut of your (current non-existent) money owed.
If you can explain that is in both parties interest to keep it out of collections and extend the deadline or work out a payment plan, you may be more likely to get out of this situation without damaging effects on your credit.
- debtscrewed 16y agoThank you for your suggestion. The only reason I wouldn't do that is because Rackspace was very adamant about even the extension of the deadline (they would only agree to a 5-day extension). But it doesn't hurt to ask, though it may create a strained relationship between us.
- Grinnmarr 16y agoIt's their job to try and collect as much as they can. Even if your contact is friendly and sympathetic, if they think you can pay on better terms than you offer they will hammer you. On the flip side it is your job to be honest about your situation and get them to accept terms that you can actually meet. Other people have given better and more specific advice but the bottom line is they will take what they can get. No hard feelings. Business is business.
- pragmatic 16y agoI worked as a collector at one point. You have incentives to get money collected. A collector will say everything they can to get you to pay (sometimes skirting the collection laws). They know that you have a limited amount of money and the chance you actually paying decreases as time goes by.