Ask Bill your personal finance question

Information on recourses available if a creditor is calling

Can an individual work out a repayment plan for a collections account?

one question, have a person renting here with a small bill of 400.00, having a creditor calling. I told him to just set up a payment plan, as he just started back to work. Can he set the payment amount and the time frame himself. I always could.

Read full question
Bill's Answer
(5 Votes) | Find Learn Save

You are right; your friend can contact the creditor and ask for a payment arrangement himself. He should call first, and let them know that he is in financial difficulty. He should offer a repayment schedule that he can and will stick to. For example, if they want $100 a week, and he can only afford $20 to pay them, then he should say so. Then if things get better he can send more money.

The agents on the phone will most likely not be allowed to agree to such a deal, and may even sound hostile. In that case, one should not get angry, just thank them for listening, and end the call. Make sure to follow up this information in writing by sending the company a letter stating the facts of the case. This shows intent to make good on the debt.

Finally, he had better make the payments as promised! Breaking a promise to pay will have the collector calling even more than before.

You can read more about debt help options at

I hope the information has helped you Find. Learn. Save.



Get Debt Help!
(5 Votes)

People also like to Read Team

Get all the information you need about voluntary repossession, be it a vehicle or a home that you considering for voluntary r... Read more >>


Get more information as to how wage garnishments work. If you are facing a creditor judgment, can help you save.... Read more >>

Mark Cappel

You may or may not be responsible for your deceased spouse's debts depending on which state you reside in. In community prope... Read more >>

Mark Cappel

When a person dies, his or her debts do not disappear automatically. However, the family is not responsible for the debts. Le... Read more >>

Mark Cappel

How to handle collection calls on 12-year-old debt. Your state statute of limitations and federal law set the rules collectio... Read more >>


Recent Best
1500 characters remaining
  • BA
    Mar, 2009
    I am not familiar with that statute, so you may want to contact an attorney to be sure. I'm not totally sure why you would have a preference, but there is a great and easy way to figure out if you can... just call your bank and tell them that you are in collections but you would prefer to repay them directly. I'd be surprised if they did not accomodate you. Good luck Dale and report back on how it goes.
    0 Votes

  • 35x35
    Feb, 2009
    i was told that texas has a law that says that you can request to pay the original debtor nstead of a collection agency is this true and how does it work thank you
    0 Votes