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hello and welcome to today's Delta credit tip so today we're going to talk about structuring settlements there are certain things you're gonna want to do before you send any money to that debt collector today we're gonna give you five steps that you're going to want to take before you send any money so stay tuned we'll come right back what's today's don't the credit tip hello youtubers and welcome back to today's Delta credit tip so it may come to pass in your credit restoration process that ultimately you end up having to pay a debt right it could be a charge off it could be a active account whatever the case may be in the course of trying to fix your credit you may have to pay and it could be because they've proven the debt or maybe it's a condition of a loan maybe a mortgage or a business loan or maybe you find yourself faced was being sued maybe the debt collector or creditor has already proven the dead and proven the amount and proven they're the right ones that collect the debt whatever the case may be trying to settle a debt can be pretty intimidating so we're hoping that by the time this video is over you're feeling a little bit more confident on with a little bit more information to make sure that your settlement or your payment is a successful one and accomplishes what you want to accomplish if it is please give us that thumbs up subscribe below don't forget hit the bell because every Thursday you're gonna want to be informed because we're gonna come out with new information to help you with your credit restoration process of course share the information because if you find yourself in this situation there are several others out there that you know that are faced with the same problem all right as a matter of fact one in three people need credit repair help so just share it anyway right help us help them make a choice to make a change here with Delta so you've got to settle a debt there are certain things that you're gonna want to do first before are you sending any money and we're gonna go through these five things okay the first thing before you send any money you want to make sure that you've validated the debt you can call it proof of obligation you can call it discovery whatever you want to call it you want to make sure of certain things about that debt are valid before you send it the first being that you still legally oh it and this stems around statute of limitations we've had this in many videos before so if you want to go back to some of our old videos we talk more in depth about statute of limitations you're gonna want to do that but basically each state has different shelf lives for different types of debt and there's basically four types written promissory notes open-ended loans and oral agreements and so again each state has their own statute of limitations you're gonna want to research that so that you know what the statutes of limitations are and when you ask that creditor or that debt collector about when you stopped paying and timing that debt you may find that it's not a legal obligation that you have anymore and that kind of changes things a little bit the second thing you want to validate is you want to make sure that the amount that they're trying to collect from you is the actual amount that you're legally liable for it is illegal for a debt collector to charge you interest or fees so if they're charging you three dollars and 95 cents because you're using a debit card or if they're charging you interest you're gonna want to make sure that that is written in the original contract that you wrote or the original contract that you signed with that original creditor because if it's not written in those terms and agreement which is why we ask you to keep that stuff they can't assign it but it cannot sell it without that being in the contract now caveat here if you're being solicited by an attorney an attorney is kind of above that law they can charge interest because it's legally allowed but if it's Joe Schmoe debt collector then that law still applies alright so you also want to make sure that the entity that's trying to collect the debt that they are actually the responsible party to collect the debt there has to be some sort of chain of title they have to show through some sort of contract that they're the ones that's currently owning that account that you want to pay because you don't want to pay the wrong company because that's just gonna cause a whole lot of problems for you alright so again validate the debt make sure the amount that you're trying to oh is what they claim the person that you're paying or company that you're paying is the rightful party and again that you're still legally liable for that debt the second thing you want to do before you send any money whatsoever is you want to make sure that you're financially ready there is no point in setting up an obligatory payment if you're not prepared to pay if you're broke wait a while save up some money what we always recommend is that you save the actual dollar amount of the debt just in case the settlement doesn't get as deep as you would like or reduced as much as you like and your last thing you want to do is to not be prepared because usually a settlement only lasts for a certain amount of time that agreement has a certain amount of time usually between 30 and 60 days after that they're gonna really come back to you say well we were gonna give you that but since you didn't pay it we're gonna charge you three or four hundred dollars more for spike and you definitely don't want that to happen because that that's just never fun right also you've got to be careful with installment plans the reason why is that an installment plan will not fix your credit until you're done paying and as a matter of fact it could actually hurt your credit in the process if this is an older debt but yet say still within statutes of limitations what you may find is that as you're making those payments they're updating the balance and every time they update it it could potentially lower your score because for the bureau's that's like it's a new report every time you pay and that could be a bit awkward when you see your score going down as you're paying off the debt all right now a funny thing that we've discovered is if you've got a credit card most credit cards once they've charged off they're over the limit once you've paid it down to below the limit it kind of triggers that debt to credit ratio still with the credit bureaus so you want to set up that installment plan to where you can get below that threshold of the limit as quickly as possible all right but again tomi can be settlement agreements until you're ready to make that payment okay now the third thing you're gonna want to do is you got to be prepared to say no not all debts are not all good deals or good deals okay so you've got to be prepared to say no and walk away and maybe try to revisit it later when you can have a better agreement with that collector of the debt whether it's the original creditor or the debt collector and another big reason why you may not want to go ahead and accept whatever agreement that you've come across is the fact that they may not delete for payment a deletion is not a requirement they're not required by law to delete something from your credit port just because you've paid them right you're gonna have to negotiate that piece and if that's not part of the contract then you may want to second-guess whether or not you want to actually pay them at that time all right so now fourth thing super important super important you gotta get it in writing okay if you don't get it in writing funny things start to happen right you may find that they try to sell the remainder of the debt they you may find that the dollar amount may change you know so you want to make sure that you've got that contract in writing before you make the payment otherwise you may find yourself in a bit of a pickle and then when you're done obviously you want them to send something to you either a deletion letter or a satisfaction letter or something that shows that there's no residual financial obligation on your part so that you can move forward without having to look over your shoulder every time you pull your credit report right now if and last thing that you're going to want to do as you're trying to figure how you're gonna pay these debts is if you've got a specific goal in mind like getting a mortgage or a business loan or a car loan go to the lender you may find that not all debts matter to that lender and it can cause you to want to prioritize the kinds of debts that you're paying remember having good credit is different than being lendable and you may find you can still have some of those collection accounts or derogatory accounts on your credit report and still accomplish the goal that you want and you can let those accounts basically rot right because eventually the second statute of limitations where it just simply falls off the credit report will come to pass and then you can move forward with your life right so again five things that you're going to want to do first you want to validate the debt second you want to also make sure that you're financially prepared for the debt the third thing you want to do is got to be prepared to say no the fourth thing you're going to want to do is make sure you get it in writing and last before you pay anybody off make sure that you've checked with that lender if you've got a specific goal in mind so that you're not paying off things that really don't matter and you can save that money for something more useful in accomplishing your goal so again I hope this information helps thumbs up subscribe hit the bell share it with the world and this is au you make a choice to make a change Delta