Have You Defaulted On An Arrangement?

Discussion in 'Debt Collection' started by MelissavdW27, Feb 10, 2016.

  1. MelissavdW27

    MelissavdW27 New Member

    Have you ever had a debt collector call you and then you make a payment arrangement with them to pay the debt off at a lesser amount per month. Only to pay for about 3 to 4 months and then realize you can't afford the arrangement's payment anymore?
    What do you do then?
     
  2. I think it's better to pay in full than installments, especially when one isn't so sure about earning money, but this seems like a good thing, not being able to pay anymore is a fault from the payee and won't that get the [person arrested?
     
  3. kalyanign

    kalyanign Member

    I have never had to face such a situation yet because I always make it a point pay the instalments in time for anything that I am supposed to, especially my credit card bills. It does produce a strain on my monthly budget at times but I never diddle on my monthly payouts because I do not want to stretch things that result in a huge pile-up and the debt collector standing on my doorstep. I can never face that.
     
  4. ACSAPA

    ACSAPA New Member

    When I've run into the problem of not being able to keep up my payment arrangement, I always call the company. They would rather you called them to tell them the truth rather than just vanish without paying. It looks better to them if you appear to be cooperating.
     
  5. MelissavdW27

    MelissavdW27 New Member

    In our country it won't get you arrested, it will get you listed on ITC which then Blacklist's you so you can't make any more loans etc. Most of our credit are paid off in monthly installments. And with medical bills you can actually make an arrangement to pay that off in installments as well, especially if it is big amounts and you don't have the money to pay it once off.
     
  6. mett1982

    mett1982 New Member

    I have never defaulted on an arrangement that I have made with a debt collector. But situations happen in life that might make it impossible for them to kept up with that arrangement. I think the best thing to do is call the company and speak to someone. Usually they are pretty understanding and are willing to work with you. Maybe they can make a new arrangement where you don't pay as much. Most of them just want their money. As long as you are pay something on it they are happy. Not everyone has the luxury to pay off a debt in full installments. I think the company will be willing to work with you. Can't hurt to try.
     
  7. Susan

    Susan New Member

    I have never done it but I see no harm in contacting them again and seeing if another arrangement can be worked out. They would much rather to get their money then to not get it at all. Even though it may take longer to pay it off at least it will be and eventually it will be removed from your credit report. It is better the try to work something out with them then to ignore them and hope they will go away. They never will.
     
  8. Nocturnal Writer

    Nocturnal Writer Active Member

    I don't know if I am right in my interpretation for this. For I was once working in the bank, what we do for those borrowers who had a default payment we restructure their loan and added the interest so that they may have a new loan and their delinquent account is fully paid. But they have a new payment mode and the amount to be paid becomes too high. I think this is also the principle used by those who have a default in their telecommunication obligation.
     
  9. kalyanign

    kalyanign Member

    This kind of restructuring is done at many places including telecommunication as well as credit card obligations. Sometimes, the defaulters are even offered a certain discount on their defaulted payment and the interest levied on it, as long as they pay it all out immediately in one installment in cash. It depends from person to person, their financial situation and the reason why they defaulted etc. However, whichever option is chosen or even if discounts are offered, the payment is still to high than the original payments in the first place. So it is better never to reach that kind of situation ever.
     
  10. MelissavdW27

    MelissavdW27 New Member

    I do agree. It is better to either just try and pay the original agreement or to phone them to make new arrangements. I'm just thinking of when those new arrangements can't be paid either. Where you're in a situation where you would have to choose; groceries and diapers or the medical bill of a year ago...
     
  11. sheebah7

    sheebah7 New Member

    I certainly have defaulted...and felt like I lost my money. Anytime you default on a credit arrangement it sometimes can put you back into that hole again. I sometimes wonder if they will sometimes let the amount you previously paid just suffice. This can be considered debt satisfied. The debt is probably old anyway.
     
  12. remnant

    remnant Member

    Actually this is the norm rather than the exception. Most people have defaulted at one time or another. I am as guilty as charged. I had such an arrangement and paid the initial instalment before developing cold feet. I am ethically and morally inclined and have made it a commitment to pay the debt at some point in future. I nowadays prefer to save money over a period of time to acquire an item instead of incurring debts unnecessarily.
     
  13. Alexandoy

    Alexandoy Active Member

    My wife's older sister had a credit card that she used and failed to pay. When the debt collector summoned her to the law office (the credit card's collection of bad debts is handled by that law firm), my sister-in-law entered into an agreement for a low installment so she could afford. The delinquent balance was 20k but the total debt being collected was 50k. And since she asked for a longer period to pay, all in all she would be paying 58k for the 2 years of the agreed period. That was really cruel.
     
  14. melik

    melik Active Member

    I wouldn't recommend to do this, as depending on the type of agreement you sign, it will only generates a bigger amount of debt if they are taking into account the interests increase. A friend did this and in the end the debt became so huge that he had no other choice other than sell his car to pay it. A very sad situation for his family.
     
  15. Decentlady

    Decentlady Member

    I am a person who doesn't believe in buying anything on credits because I am scared of the word debt. At times though I end up being directly involved in the payment of debts incurred by other family members. I always try to pay full sum at a go if I can afford it otherwise I am forced to clear it slowly but surely. I never default on an arrangement.
     
  16. Zeta

    Zeta Member

    I've never defaulted on any payment arrangement as it is my plan to settle all debt and become financially free. If that happens to me though, I'd reach out to the creditor and ask for the restructuring of the debt to a monthly amortization that is more realistic in my situation. If the creditor agrees, fine. If not, then I'll have to look for a third party that will assume the loan and might even offer a lower interest rate.
     
  17. Nocturnal Writer

    Nocturnal Writer Active Member

    There is an instance that I couldn't cope with my schedule of repayment for my loan. I have to pay for the interest of the delay. Sometimes it is too embarrassing for being a default payer, much so if you are a delinquent repayor.