How much do Collection companies buy credit card debts for???

Im trying to settle a credit card that has went into collections. The debt company has added $8600 in interest on a charge card that was at $12400. The debt is now 21000. I have been trying to neg. a settlement with the collector. Now what I have read in the past is that you can settle for 40% of the debt. Is that 40% of the inflated debt or the original debt?? How much does the collector pay for this debt. They bought it from Citibank. Im thinking 20%. Does anyone out there have any valid info on this subject. Thank you for any info and advice.

How much do Collection companies buy credit card debts for???

This is a sizable debt. A lot of will depend on your income sources, your age, what state you live in, how old the debt is and so on. All I can say from what you have provided is that I would not pay the interest if I were you, even though they are entitled to interest. First, if the agency was to take you to court, they would have to provide a proper accounting in front of a Judge. What is usually discovered is that the agencies use some form of gorilla mathematics like a private loan shark would use. Thus, the $8600 in interest is probably way off. Based solely on what you wrote, I can only say that a 55-65% settlement on the original debt would make them go away. In other words, about $8000.

The collection agencies may or may not purchase the debt. Some are collecting for a company and some actually purchase the debt for pennies. It really doesn%26#039;t matter how much they pay or don%26#039;t pay. What is more important is how far they are or aren%26#039;t willing to go to get it back. I have seen agencies sue someone for as little as $1600.

How much do Collection companies buy credit card debts for???

A collection agency does not buy the debt. Citibank pays the agency to collect the money. I worked in collections for years. Citibank hires an agency to collect the money for them. If they offer you a settlement, they will put in writing the exact amount they want to settle. Don%26#039;t take any settlement unless you get it in writing. After you pay it, keep that letter!!

How much do Collection companies buy credit card debts for???

i have heard that they buy them for pennies on the dollar... like maybe for 20 cents on the dollar... but don%26#039;t quote me on that, it%26#039;s just what i%26#039;ve heard from other people... i%26#039;m sorry to hear about your situation, i hope it%26#039;s 40% from the original debt.... good luck... =)

How much do Collection companies buy credit card debts for???

I listen to Dave Ramsey%26#039;s radio show and he says 7 cents on the dollar. Citibank is just writing it off and selling it to the debt companies for next to nothing. Only source I could find was this http://debt-crunch.com/?p=92 and it doesn%26#039;t give the 7 cents figure, but I know I%26#039;ve heard that several times. But 20% on your original loan would be a good place to start. Just be sure you get an agreement in writing and keep a record that this settles the debt. Keep that document for the rest of your life cause it will come up again.