Wednesday, June 27, 2007

Final Settlement on BofA Balance

Here's the final result on the BofA balance settlement. I received in writing the offer for $3909 to settle the balance and received a call from my buddy Mark over at the collection company. I explained to him the issue that I get paid on the 1st and 16th, making it hard to have the money by the 28th (tomorrow). They asked me how much I could have by the 30th (Saturday), explained again about my check not coming until the 1st (Sunday) and that I would just have $3400 available on the 2nd. (a little fib, I'll have around $3440 at the low end of my estimates, $3700 at the high end of my estimates).

In the end we made the deal of $3400 as full and final payment on our balance of $9772 to be charged on 6/30 (which may or may not bounce, my employer has been known to pre-deposit on Saturdays). If it bounces, the worst case is we get charged another $35 (A line they told me). I had this debt listed originally as $8561 on my debt list.

What I need to do in the coming days to make this happen:
  1. Current bank account has $1100
  2. See if one of our renters that pays on the 1st can get us the check on Thursday (enough time for it to clear). It shouldn't be a problem for him. ($400)
  3. Deposit 1 check that has both our names on it into the bank account. ($30)
  4. Move $750 we have in one account at one bank to our checking account at another bank.
  5. See if we can extend the paying of our cell-phone bill by a couple of days until Monday.
  6. Have my paycheck of $1349 direct deposit (already setup).
  7. Deposit $100 rent payment made on Friday night into the account Saturday morning.
If you did the math, you'll see we will have $3729, but have our $150 cell phone bill to take care of too. I explained to my wife that the coming month is going to be tight, but we won't be rolling coins. We're just going to have to be walking on pins & needles this coming month, checking the balance in the bank account daily and not spending anything beyond the mortgage, utilities, and gas for the car. Everything though will be current by the end of the month.


MyDebtBlog said...

I'm not sure why you feel the collections idiot is your buddy and that he's working with you on paying this. That guy is not your friend, and his job is to get money out of you one way or another. I think you have given them way too much information about when you get paid and will have money, etc, and it puts you at risk.

Where did the $3400 by 6/30 come from, over the phone? You're going to pay $3400 as a settlement but have a letter saying they will settle for $3909. I don't think it takes rocket science to figure out your short by $509. NEVER send a personal check to a collections company, that gives them access to your account and they could literally empty it for the full balance due. Get a money order or have a money wire done to get the payment to pass directly from your checking account through the medium to them, and get a receipt.

You are putting yourself in a really bad place by trusting these people will do you right. They are after the balance but will take anything you give them. I would not be talking to them over the phone. Tell them and request in writing any further communications should be done in writing. I think you can get this cleaned up as long as you take the proper steps to ensure the debt will be reported as ‘paid‘ (NOT ‘paid less than full’, ‘settled less than full’, etc), the collection is completely removed on your credit report, and you have proof that you settled the debt.

I hope you'll be okay next month after settling this debt. It sounds like if you do get this settled, it will take a few weeks to recover from the financial blow but at the same time take out a good chunk of debt. Keep your bases covered and move on.

Sick of Debt said...

The "buddy" comment was sarcastic, sorry I wasn't clear on that, I edited my post to show that.

I have the letter for the $3400 in my hand, so I don't have to worry (at least one hopes) that they will try to collect $3909.

I know I put myself in a bad place regarding the bank account information and I will be following them like a crazy man making sure I get a letter saying "paid".

I know we'll be okay next month, we already got the rent check from the one roommate and taking care of the rest bit by bit.