Bills Logo

Information on recourses available if a creditor is calling

image alt text
Mark Cappel
UpdatedMar 23, 2023
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.

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.



Dealing with debt

Debt is used to buy a home, pay for bills, buy a car, or pay for a college education. According to the NY Federal Reserve total household debt as of Q4 2022 was $16.91 trillion. Auto loan debt was $1.55 trillion and credit card was $0.99 trillion.

According to data gathered by from a sample of credit reports, about 26% of people in the US have some kind of debt in collections. The median debt in collections is $1,739. Student loans and auto loans are common types of debt. Of people holding student debt, approximately 10% had student loans in collections. The national Auto/Retail debt delinquency rate was 4%.

Collection and delinquency rates vary by state. For example, in Montana, 14% have student loan debt. Of those holding student loan debt, 7% are in default. Auto/retail loan delinquency rate is 3%.

Avoiding collections isn’t always possible. A sudden loss of employment, death in the family, or sickness can lead to financial hardship. Fortunately, there are many ways to deal with debt including an aggressive payment plan, debt consolidation loan, or a negotiated settlement.

SHOW SOURCEarrow-down


BBill, 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.
ddale, 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