Be sure to keep records of each settlement including the settlement offer letter and also bank statements showing the money coming out of your account or copies of checks. You will want to also follow up on these settlements by checking your statements, they should begin to show a $0 balance or you should receive a $0 balance letter within 30 days. Call and ask if you do not receive one.
There is a chance that a collection agency will continue to call even after you have settled an account. If this happens, you will want to call the original creditor, not the collection agency and have them straighten out the situation. They are the only ones who can resolve the issue.
Check your credit report again after all settlements have been made. Make sure your account statuses have been updated correctly. Write letters to the three bureaus if this is not the case. Each bureau keeps separate records, so be sure to check all 3 (Experian, Transunion and Equifax).
Close your settlement account. This is a matter of safety and closure. After giving out your account number that many times, it is best to simply close down the account and avoid any unauthorized transactions. Closing the account also helps to give closure to the process and lets you start a new chapter of your debt free life.
Take the monthly payment you were putting into the settlement account and begin placing it into a mutual fund or investment account. You should also purchase term life insurance if you are the family’s breadwinner and make sure everyone in the family is covered by some type of health insurance. High deductible health plans are a great value and cover against some kind of catastrophic illness.
