How to Figure Out How Much I Owe Collection Agencies

If you have unpaid debts, your accounts may be handed over to collection agencies who are charged with retrieving the outstanding balances from you. Collection agencies will contact you by mail and telephone seeking payment. You may not have a record of how much money you actually owe to the collection agencies. It is important to determine your outstanding balances so you can manage your finances.

Instructions

1

All collection agencies are required to send debtors a "validation notice" stating the amount they owe within five days of making contact. If you have not received such notices, ask the collection agencies that contact you to send them immediately.

2

Collect and organize your debt statements. Include credit card statements, loan statements and any other debt statements that displays your outstanding balance.

3

Identify the debts the collection agencies are trying to collect. Even if you have multiple debts, it does not mean that all of them have gone to a collection agency. For example, if a collection agency is calling only about your unpaid credit card debt, you can set aside your car loan statement and other debts.

4

Determine your outstanding balances on whatever debts the collection agencies are seeking to collect. Compare this number to the amount of money the collection agencies have cited in the validation notices.

5

Look for discrepancies. If your records indicate that you owe less than what the collection agencies are seeking, call them to ask how they reached the amounts they stated.

6

Request a free credit report from one or all of the major agencies. Your credit report should provide accurate outstanding balances on what you owe.

7

Negotiate with the collection agencies. Some are willing to make a deal to get their money. You might be able to negotiate a lower total balance reduction if you pay the lower amount in full, or if you agree to make three large payments.