Who Do I Pay?

Melissa is torn about who to pay on her overdue credit card debt. Does it go to the credit card company or the collector?

QUESTION: Melissa has some credit card debt that has been turned over to collections. The $350 balance she owed is now almost $1,000 with fees. Does she pay off the collector who is calling or the credit card? Dave says the collector is fine, but she must take care of something first.

ANSWER: You can pay the collector, but you have to cut a deal with them because of the enormous fees they charge. I’ll offer them $350, and until they take that offer, they get nothing. Any deal that you get with them, get it in writing. You must do that because collectors are scum and they will lie to you.