' Installment Plan Agreement - Law Offices of Robert M. Geller
CALL NOW!
FREE PHONE/VIRTUAL CONSULTATION

Things to Consider before Arranging an Installment Agreement to Pay Off Debt

If you are carrying a heavy debt load, either with one or multiple creditors, installment payments might be tempting. Many debts that are not in collections are paid through installments. You pay a portion of the debt at a time, usually one time per month, in exchange for paying more overall as interest is applied to the balance. Once a debt is in collections, installments might still be an option but there are a few things you should consider before committing to an installment agreement.

How do you know paying a past due debt in installments is a good idea?

You Can Afford the Installments

First and foremost, you need to consider if you can afford the amount of the installment payments. When a large debt is past due, you might receive a settlement agreement that offers the payment broken into multiple installments or you will be given the option of paying the debt in full in installments.

Sometimes, the collector does nothing more than divide the large debt into two, three, or six equal payments. This might seem appealing, but the installments are still large and might not be something you can afford. It is essential you make sure you can afford the installment payments before committing to the plan. You might have the option of negotiating a longer installment plan, but if not, you are better off not committing to the payment plan at all.

For assistance calculating a monthly budget and determining whether you can afford a payment, use the Home Budget Calculator from Bankrate.com.

You are Not Paying Interest

Most installment payment plans in collections will divide the amount of your debt equally and there will be no interest applied, even though you are extending the length of time you have to pay it. You need to be sure there is no interest applied to the total you owe as a result of your installment plan.

You Have the Agreement in Writing

Finally, you need to be sure whatever installment payment plan you are offered has been defined in writing. Ideally, you will receive a payment agreement that is signed by both you and the debt collector. It should include the total amount of the debt, the amount of each installment, the date each payment is due (usually a specific day of each month), and the date by which the total debt is expected to be paid. This locks both you and the debt collector into the agreement, providing protection for both of you and ensuring the agreement will be honored as long as you make payments on time.

Installment payment plans can help you pay off large debts once they are in collections, but they are not right for every situation. Sometimes they are not an option at all. If you are facing a large debt load and you are unsure what to do next, we can help. Contact the Tampa Law Offices of Robert M. Geller at 813.254.5696 to discuss your situation.

Archive

Video Testimonials

Tampa Bankruptcy Law Blog

Do Both Spouses Have to File Bankruptcy?

For some couples, filing for bankruptcy is the best way to get out from under crippling debt. But what if...
Read More

Will Bankruptcy Ruin My Life?

Bankruptcy is a legal solution for people struggling with unmanageable debt. It can be a difficult decision to make. In...
Read More

Can Bankruptcy Take Inheritance?

Are you considering bankruptcy? Do you have concerns about your assets? Can bankruptcy take your inheritance? Here’s what you need...
Read More

Can You Go to Jail for Filing Bankruptcies?

Bankruptcy is a difficult decision. However, it can be necessary if you are struggling with debt. This is true whether...
Read More

Can You File Bankruptcy If You Don’t Have a Job?

Filing for bankruptcy is an intimidating prospect. Unemployment adds another layer of complexity to the situation. Can you file for...
Read More

Who Pays for Bankruptcies?

When a debtor files for bankruptcy, the court discharges the majority of their debt. This means that the creditors must...
Read More

Do You Have to Go to Court to File for Bankruptcy?

If you are considering filing for bankruptcy, one of the biggest questions you may have is whether or not you...
Read More

Can You Rent After Bankruptcy?

Filing for bankruptcy can be an overwhelming experience, and it’s important to understand the implications of this process before you...
Read More

Can You File Bankruptcy on Unemployment Benefits?

If you’re considering filing for bankruptcy due to financial hardship, it can be helpful to understand the various options available....
Read More

Do Bankruptcies Show Up on Background Checks?

The decision to declare bankruptcy can be difficult, and it is important to be aware of the potential consequences. One...
Read More

Bankruptcy

For The Next 5 Days GET A FREE BOOK About Bankruptcy

Learn More

Infographics

We are A Debt Relief Agency.
We help people file for bankruptcy under the Bankruptcy Code

Pay Online Bankruptcy Courses Newsletter Subscription

Call For A Free Initial Consultation

813.254.5696

Tampa Office

Law Offices of Robert M. Geller, P.A.
807 West Azeele Street
Tampa, FL 33606
T: (813) 254-5696
T: (800) 853-7549
F: (813) 253-3405

Map And Directions

St. Petersburg Office

Law Offices of Robert M. Geller, P.A.
125 5th Street South
(Wells Fargo Financial Center)
2nd Floor, Suite G
St. Petersburg, FL 33701
T: (727) 532-3939

Map And Directions

Pasco Office

23526 State Road 54
Lutz, FL 33559
T: (813) 336-2320

Map And Directions