Q:

How can you pay off debt collectors?

A:

Quick Answer

To pay off debt collectors, choose a payment method or negotiate to lower the debt, advises Bills.com. Other methods include using a debt settlement program or filing bankruptcy to get rid of the debt.

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Full Answer

There are several options for paying off debt, each dependent upon an individual's circumstances. If the debt is valid, paying the debt using a monthly payment plan or in full is possible. Submit the payment to the debt collection agency via whatever method it offers.

Debt negotiation is another option, since many debt collection agencies will negotiate for a settlement of the debt. This usually involves making a lump sum payment that is a percentage of the debt. Pay the lump sum to get rid of the debt.

Debt settlement programs also offer a way to pay off debt collectors. This is particularly true of large debts or when a consumer has difficulty making minimum monthly payments to a debt collector. With this arrangement, the consumer pays off the debt to the settlement company, and the settlement company pays the creditor. A fee is generally assessed for the service, notes Bills.com.

As a last resort, consider bankruptcy. Chapter 7 bankruptcy dissolves most debts while chapter 13 bankruptcy allows for a slower repayment of debt during a period of years.

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