How to Pay Off Debts in Collection

Once a bill has been placed in collection, it can be hard to pay off. Additional fees will have been added to the original balance, and the total debt owed can become quite large. Through responsible budgeting and some basic legwork, a borrower can work to reduce his collection debt and eventually pay it off in full. It may take some time and energy, but the reward will be when the collection is removed from your account.

Instructions

1

Collect all statements from each collection debt owed. Analyze the statements for contact information, the amount owed and the original debtor.

2

Create a master list of all debts owed to get a clear picture of the whole situation. If the money is not readily available to repay the debts, create or analyze your family's budget. Look for areas of spending that can be temporarily reduced in order to find extra funds for debt repayment. Use this plus any extra earned income to pay down your collection debts.

3

Contact the original debtor on each debt. Explain your situation. See if the creditor will take the debt out of collections and reduce the fees owed. If so, pay the creditor immediately or attempt to work out a payment plan.

4

Contact the collection agency for any debts not settled with the original creditor. Ask for a payment plan or pay the debt directly to the collection agent in full. Continue payment on the debts until each one is paid in full. Do not miss a payment or make a late payment to avoid late fees.