Negotiating down balances owed with Collection agencies?

[nicky]

In 05, I got a credit card. I fell behind in payments. In 07, the company canceled it and sent it to collections. I was young and naive; I have since learned my lesson. Anyways, I am now in a position where I can pay it. I went through all of my receipts, bills, & statements for a credit card company and calculated purchases, payments, late charges, and finance charges. From the purchases and payments, there is a balance of $100.71. But, once I add on over $400 in late and finance charges, the balance is over $500. Can I negotiate to pay only the $100.71? What should I try to pay? I don't want to have to pay the whole thing. Although, I know "paid in full" looks better than "settled" on credit reports. Will it make that much of a difference in my credit score between the two?THANKS!!Yeah, I am trying to get a mortgage. So, I have to tidy up my credit.

[henryleslie]

They purchased the debt from the credit card company for less than you owed.Offer them the original balance to start with and see what happens.Make sure you do everything in writing and get repsonses in writing.

[Caitlin]

Per your update:Mail the collection agency a vaguely worded statement like:I am willing to settle this matter for $150. This is in no way an admission of this debt, but rather an attempt to settle this matter. Your firm must send me a written agreement on your company's letterhead that you will accept this amount as "payment in full" and that this issue will be settled. Upon receipt of this agreement, I will mail you a money order for this amount.=================DO NOT do any of the following:- Give them your phone numbers. If you do you might get a lot of nasty/aggressive collection calls. - Admit in writing to owing the debt- Sign your signature on any document that you mail to a debt collector. It could end up on a forged document that can be used against you. Simply type your full name.- Tell them you are trying to clear your credit for a mortgage, as they'll try to extort a max. settlement- Give them your checking account numbers. Pay only with a USPS money orderStay off the phone...keep all communication in writing. If you must call...call from a payphone so they can't trace your number. As stated earlier, renewing contact with debt collectors over old debt like this may stir up a hornet's nest....be careful and good luck...

[Sonadora]

You might be able to get them to lower it if you say you will pay it all at once, rather than stringing them along with monthly payments. I had a collection agency make me an offer once. I had my debt paid down to like $800 (from over two thousand dollars from a car accident) and they called and said, "If you can pay us $500 right now, we'll call it square." Well, I didn't have $500 at the time so I couldn't take the offer, but the point is, they are sometimes looking to make deals.