Unless you already gave them the reason for the switch, new job, tell them that you cancelled the contract due to employment ceasing. Tell them that you are a responsible individual and that you want to take care of your oblgation but due to your current income stream and current debt, mortgage, car payments, the best that you can do is $10 a month on the pro-rated amount.

You don't need to lie, just position the truth in a way that leads them to a conclusion that is favorable to you.

If you tell them you went to a better paying job and have no other debt, mortgage, car payments etc... they'll never make a deal with you.

Scott

Is it on your credit report? If so, the damage is already done. Cease dealing/communicating with them in any form (it will only work against you).

Here's the head-scratcher of our "system": If you try to "do the right thing" once it's been reported on your credit report as a charge-off or otherwise uncollectable debt by either paying it or trying to negotiate a settlement, it actually HURTS you, not help you. ANY new initiation of correspondence by you or response to one of their queries by you resets the seven-year clock on how long such a charge-off can show up on your credit report.

So it's actually best to blow them off entirely for at least seven years UNLESS you're reasonably certain you can get them to reverse the credit bureau report in exchange for paying them (but there's no way of knowing that they'll work with you on this without initiating communication, at which point you screw yourself by calling them in the first place to ask anyway. . . Nice, huh?)

Technically the debt remains valid and legal after the seven years, but at least it won't be on your report. You'll just have to learn to live with the guilt of oweing someone money that it isn't worth repaying because it'll hurt you.

Great system huh? One that encourages dishonesty. Gotta' love it.

It hasn't gone to collection yet. Bill is due tomorrow (I received it two days ago) and after that it goes up to $570. Then they say it will either go to collection or they'll sue me in small claims. I read about 10 credit reports every single day in my job and I know a $400 collection ain't gonna do much to my score, even if it were a judgement, and will have zero effect on my ability to get any loan I want. My own mortgage company doesn't require any collection under $5000 to be paid to close a loan unless it's a tax lien. Medical collections are completely ignored. Yes, technically, I signed the paper and agreed to the fee. But it's highway robbery and is more than twice what I was told the early term. fee to be, which I promptly paid. There's no reasoning with such people and I will not pay them in installments or in a lump sum. Call me a deadbeat. But my credit score is high enough to take this hit and I will sleep well at night, while remembering to never ever do business agian with an authorized retailer of some cell phone provider.

Visualize personal responsibilty, RL. ;)