Daniel Rosen explains the Pay for Delete tactic: negotiate with debt collectors to remove collections entries from your credit report in exchange for payment. Never admit you owe the debt, get the agreement in writing first, and expect deletion within 30 to 45 days. Collectors typically want around 70% of the balance.
Questions this video answers
May 28, 2024.
About 20 years (since releasing his first credit repair software).
Rarely willing to accept less than 70% of the total debt.
About 30 to 45 days.
Admitting the debt could restart the statute of limitations clock and "you could be dealing with this debt for another seven years."
Chapters
Hey, Credit heroes. How would you like yet another tool for solving credit problems? I thought so. Today I'm going to show you how to use Pay for Delete as a way of getting rid of nasty credit problems fast and boosting your credit score. So you better stick around. My name is Daniel Rosen and welcome to Credit Repair Business secrets. In the 20 years since releasing my first credit repair software, I have helped thousands of businesses scale from the ground up. I've experienced many of the same challenges that credit heroes face, and I've learned proven ways to overcome them and succeed. Contrary to popular belief, simply paying off your past due debt doesn't get the item removed from your credit report and doesn't necessarily help to boost your credit score either. That's why Pay for Delete can come in handy. Hey, debt happens, and when creditors struggle to collect from you, they often turn to collection agencies. These agencies often buy your debt for pennies on the dollar, but they still try to collect the full amount of the debt. And that's when they become really annoying. Here's why this is important when communicating with a debt collector, especially one who may be threatening legal action if you don't pay. Your number one goal is to negotiate to get your collections account removed from your credit report, and this can be mutually beneficial. The collection agent is able to collect some of the debt, usually for more than they paid, and you can get the collection removed from your credit report. You just need to use the leverage that you've got. But here's a thing to remember. You don't have to be a master negotiator. The first thing you want to do is something that you don't want to do. Don't under any circumstances admit that you owe the debt, because that could restart the entire statute of limitations clock and you could be dealing with this debt for another seven years. Here's what you need to know. Pay for delete, also referred to as pay to delete or pay for deletion, is part of the negotiation process. What you do is you send the debt collector a pay for delete letter and I'm going to give you a template for that letter that you can have for free. You can find a link to our template right over there in the show Description. In that letter, you tell the creditor exactly how much you're willing to pay for full settlement. Keep in mind that creditors are rarely willing to accept less than 70% of the total debt. Obviously, offering to pay off the entire debt would make it much more likely that the creditor would accept your offer and what you're offering is to pay an amount for the debt in return for the creditor to delete the negative item from your credit report. Okay, so once you construct the letter, attach it to an email, or even mail it directly to the creditor if they accept your payment terms and if they've done this in writing, then pay what you've agreed and within 30 to 45 days you should see the item come off your credit report and your score should start to go up again. The link to get the letter is over there in the show notes, and if this video has been helpful for you, click the thumbs up button for me so that more people will see this video. And here's my final point. Remember, the pay for delete is part of the negotiation process. So so if the collector denies your offer letter, be sure to follow through to find out why. But whatever you do to get this to work, don't make any payment until the collector agrees in writing to the terms of your offer. And I'll end by saying if you want to learn another way to deal with debt collectors, check out how Vance Dotson sues them. And if you'd like to improve your credit score and discover how to earn extra income Repairing Credit for others, check out my brand new Start Repairing Credit Challenge. Doors are closing soon and it is completely free, so sign up right now@startrepairingcredit.com and keep changing lives.
