Dealing with collection agencies. They can reduce the amount you owe.

[cheekysaver]

First, I am not a expert so please do your own research so you know your rights.

Today I got a phone call about a old debt long since forgotten. (I won't have to pay a thing but I will get into that later) LOL The lady was a little rude and I have not receive notices or anything so I was not concerned. It inspired me to do some research and I got a education. I know I am not the only person out there with old debt so hopefully it will help someone else. You can sometimes get the bill reduced 50% because they buy the debt from the company for pennies on the dollar. They can sometimes be deceptive... ok most of the time they are. They like to threaten things like if you don't pay in full we will take it directly off your next paycheck. The reality is a few things need to happen before it goes that far. First they have to notify you in writing that they have this debt, Second it has to be a debt you owe and there are things like statute of limitations on debt. Third before they can take money off your wages it has to be done through the court system. They will negotiate with you and bring the debt down depending on the amount owed. If you get your debt reduced get it in writing... keep records of the phone call... who you talked to... what the debt was reduced to and get receipts. Sometimes they are sneaky enough to sell off the remainder of the debt you both wrote off to another company... but if you can prove you had a agreement and paid it off they can get in trouble. Start negotiations low... like 30 cents on the dollar... they will come back with a way way high number... wait and be quiet... the silence will get them to reduce the number. (It kills them not to get a reaction) If you can get your debt reduced by 40 - 50% you are a winner for sure... just keep the payments and keep everything in writing.

It is always better to deal with the debt when possible. Even hashing out a deal helps stop your credit rating from crashing. When you make a deal even at a fraction of the debt it is still considered paying it off. Even if you have a short statute of limitations like 2 to 3 years it will effect your credit rating for 6 to 7 years. There are some circumstances where it is not possible to pay it back. In my case that certainly is the situation. I have a disability that will not get better and a very small income...I have very minimal assets and I will not be getting a mortgage or credit. For me the statute of limitations works.

DO YOU REALLY OWE THE MONEY?
Statute of limitations doesn't cover Student loans or support payments... but it does cover most everyday debts. Once you make a payment arrangement (in Ontario admitting to owing the money resets the clock) or make any payment it resets the clock to day one of payment owed...Just so you know a legal judgement on the debt can extend the limitation. so research research research! It can save you thousands.
In my province the statute of limitations is 2 years. I don't owe anything because the debt is about 5 years old. In some cases people get phone calls and threats of legal action for debts almost 20 years old. Don't fall for it. They count on you not knowing your rights. I had no idea the statute of limitations was 2 years... but I sure do now! Remember the statute of limitations is NOT the same as your credit rating. It is 6 to 7 years history that applies to your credit rating so be careful in how you proceed. Here is a link giving you the statute of limitations on debt.
http://credit-collections.ca/statute-of-limitations-on-canada

[momof3heathens]

In BC credit agencies, etc can not enforce payments from persons on disability.

[maggiespice]

.

[cheekysaver]

You should ALWAYS pay a bill when it is possible. I paid cash for everything... was carrying no credit card debt, no vehicle debt (I drove a $175 car that I had to have for work), living in the cheapest place I could find with no frills or shiny new things. I was one of the working poor doing everything I could every month just to try and pay the bills. That was when my genetic disability that I did not know I had progressed. Sometimes things do happen that are beyond our control... and sometimes people are just people and they make mistakes. Please know before I got sick I was putting maximum effort into my life to pay my very basic bills... to the point of crawling up the stairs to go to bed.

Why do I put myself out there like this and let this be known? Have you ever been in the grocery store and seen people with that look of desperation in their eyes counting every penny and every meal they can squeeze out of their modest income? Yup, I did it for them.

[momof5boys]

You should ALWAYS pay a bill when it is possible. I paid cash for everything... was carrying no credit card debt, no vehicle debt (I drove a $175 car that I had to have for work), living in the cheapest place I could find with no frills or shiny new things. I was one of the working poor doing everything I could every month just to try and pay the bills. That was when my genetic disability that I did not know I had progressed. Sometimes things do happen that are beyond our control... and sometimes people are just people and they make mistakes. Please know before I got sick I was putting maximum effort into my life to pay my very basic bills... to the point of crawling up the stairs to go to bed.

Why do I put myself out there like this and let this be known? Have you ever been in the grocery store and seen people with that look of desperation in their eyes counting every penny and every meal they can squeeze out of their modest income? Yup, I did it for them.

I'm glad that you clarified why you started this thread. I have no sympathy, though, for people who 'work the system' after they purposely put themselves up to their eyeballs in debt just to keep up with the Joneses and have the latest 'toys'.

[cheekysaver]

I'm glad that you clarified why you started this thread. I have no sympathy, though, for people who 'work the system' after they purposely put themselves up to their eyeballs in debt just to keep up with the Joneses and have the latest 'toys'.

Oh I totally agree! I won't tell you how hard of a time I had because of the dork-knobs that work the system. (yup i kept it grated but it wasn't in my head)

[theo44]

You should always pay any debt that you owe.

If you forgot about then arrange to pay the original debt but no interest.

[theo44]

You should always pay any debt that you owe. If you do not pay the debt then you effectively stole from that person or business.

If you forgot about then arrange to pay the original debt but no interest.

[cheekysaver]

By arranging the payment to be lower than the original bill you are not cheating the company. Bill collection services buy debt for pennies on the dollar. Paying more does not get the company more money at that point it is too late because they sold the debt. You do far better by negotiating the debt down in much the same way we negotiate our grocery bills down by shopping sales and using coupons... it only makes sense. As for paying bills you are right you should always pay bills whenever possible.

Please keep in mind there are still working poor people in Canada. Not everybody is broke because of poor financial choices.