The Smallest Payment to Stay Out of Debt Collections

Published on Nov 13, 2013 06:46 am

Paying all your bills on time can feel a little like walking a tightrope. You might fear that if you lose your balance and fall, all is lost. This isn’t necessarily the case when it comes to avoiding debt collections, but it depends on how you handle the situation. If you’re straightforward with your creditors, you could have a better chance of weathering the storm.

Avoid Debt Collections by Making Minimum PaymentsCredit cards are one type of account that can easily end up in collections, as well as certain utilities and services like a mobile telephone or cable. Credit card companies usually list a minimum payment due on their monthly bill to you. If you make that payment, on time and in full, your account won’t go into collections. If you are unable to make the minimum payment, how much you need to pay in order to keep these accounts out of collections comes down to the creditor’s willingness to work with you.

If your debt is for a service that has been shut off, call the company and ask what the smallest amount is that you can pay per month to avoid debt collections. You might have to negotiate with your creditor, but the company may not want to send your account to a collection agency any more than you want it to go there.

Negotiating with Debt CollectorsDebt collectors can be generally eager to work with you on a payment plan because they don’t get paid until you remit something. They would rather you pay the balance due than have the debt be settled in a bankruptcy.

Although you may want to pay down your debt as quickly and fully as possible, don’t promise either the creditor or the collection agency more money than you can reasonably afford. Reaching a payment agreement is only a good deal if you’re absolutely sure you can perform as promised.

About the Author
Beverly Bird has been writing professionally since 1983. She has extensive experience as a paralegal, primarily in the areas of divorce and family law, bankruptcy and estate law.

This article is provided for general guidance and information. It is not intended as, nor should it be construed to be, legal, financial or other professional advice. Please consult with your attorney or financial advisor to discuss any legal or financial issues involved with credit decisions.

Published by permission from, Inc.  © 2013, Inc.  All rights reserved.

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