How to Settle Debt with the Original Creditor

Settle Debt - Complete Controller

If you wish to negotiate straight with the creditor, ask the collection agency for the number of the original creditor’s department. Call the creditor and then ask if you can negotiate with the creditor on the debt directly.

Preferably, the creditor will instantly negotiate with you, and you will work something out. Regrettably, that is rare. It is more probable that the creditor will take only the debt back if you talk with the collection agency, create a reimbursement plan, and make some payments under the plan. If this occurs, then the creditor could ultimately give you a new line of credit, helping you reconstruct your credit. Check out America's Best Bookkeepers

If You Make an Agreement with the Creditor

If the creditor agrees to negotiate, be sure the debt is owned. If the collection agency accepted the debt from the creditor, the agency owns the debt. If you talk it through and make payments to the creditor, the collector may not accept those payments.

You may negotiate a payoff of the debt in one go, or possibly negotiate a better payment strategy. These are the same choices and possibilities available if you talked it directly with the collector, though the creditor may be a little more flexible and willing to cooperate.

You may also want to inquire about having the negative credit info on the debt detached from your credit file, or shown as reimbursement in full if you make payments under the new contract. Check out America's Best Bookkeepers

Get It in Writing

Put any contract you grasp with the creditor in the script—preferably, in a letter from the creditor, even though a letter from your end to the creditor approving the pact and asking the creditor to fix any mistakes is relatively better than nothing. Part of the inscribed contract must be an acknowledgment from the creditor that it possesses the debt.

Send a duplicate of the letter to the collector.

If you require any help dealing with a debt collector or a creditor or prefer someone else handling your debt consultations, consider talking about this with a debt settlement lawyer.

It is a lot better to deal with the creditors more than the debt collectors. Any the past-due debt may be for – car loan, credit card payments, doctor bills – the creditor could still see you as a potential returning customer. A debt collector’s topmost and probably only interest is squeezing money out of your pocket.

A debt collector could settle for about 50% of the bill.

Debtors may pick to negotiate for better refund terms, to have the debt stated as paid in full on their credit reports, or to have calls end altogether. Here is how to talk with debt collectors: Check out America's Best Bookkeepers

  • Understand your rights.
  • Verify that it is your debt.
  • Mention bankruptcy.
  • Be watchful of the statute of boundaries.
  • Get the payment contract in writing.
  • Ponder the kind of debt you owe.
  • Speak calmly and rationally.
  • Negotiate how debt will be reported to credit agencies.

If the debt is a reasonable one that you forgot to pay, ending the calls can be as easy as writing a check. But in further occurrences, if the debt is sky-high, the caller sounds suspicious and doubtful, and you are not entirely sure if the debt is your accountability, you might want to take a step back and talk it over with the debt collector.


Ideally, you would not have any debts go to a debt collector, life happens, and at times it can’t be avoided. First, if you understand your rights, you can use these tips to your advantage and keep the debt from harming your credit score. The most important thing to remember is that you work at gaining control of your debt as soon as possible.

Check out America's Best Bookkeepers About Complete Controller® – America’s Bookkeeping Experts Complete Controller is the Nation’s Leader in virtual bookkeeping, providing service to businesses and households alike. Utilizing Complete Controller’s technology, clients gain access to a cloud-hosted desktop where their entire team and tax accountant may access the QuickBooks™️ file, critical financial documents, and back-office tools in an efficient and secure environment. Complete Controller’s team of certified US-based accounting professionals provide bookkeeping, record storage, performance reporting, and controller services including training, cash-flow management, budgeting and forecasting, process and controls advisement, and bill-pay. With flat-rate service plans, Complete Controller is the most cost-effective expert accounting solution for business, family-office, trusts, and households of any size or complexity. Check out America's Best Bookkeepers