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

Tampa Bankruptcy Law Blog

Signs That You May Need to File Bankruptcy [Infographic]

What are the Signs You Might Need to File for Bankruptcy? Not everyone who struggles financially has to file for...
Read More

What You Should Know about Filing for Bankruptcy Multiple Times

Filing for Bankruptcy Multiple Times As hard as it might be for someone who has never considered filing to believe,...
Read More

Wondering How to Remain Eligible for Financial Aid? Here’s What You Should Know about Getting a Loan to Help Your Child Pay for College After Filing for Bankruptcy

How to Remain Eligible for Financial Aid Many parents want to help their children pay for college. But how do...
Read More

What Seniors Need to Know about Bankruptcy

Bankruptcy for Seniors Facing bankruptcy at any age is tough, but bankruptcy for seniors is especially difficult. When you’re relying...
Read More

Should We Expect a Huge Rise in Bankruptcies Due to COVID-19 and Will You Be a Part of It?

COVID-19 News and What's Ahead for the New Year The latest COVID-19 news predicts that there will be a rash...
Read More

Why Does Bankruptcy Take So Long? How a Bankruptcy Law Firm Helps Make the Process as Efficient as Possible

Bankruptcy Law Firm Have you begun the bankruptcy process and you’re wondering why it’s taking so long? You aren’t the...
Read More

When Is It Too Late to Stop Foreclosure? Here’s What You Should Know If You Are Behind On Your Mortgage

When Is It Too Late to Stop Foreclosure? When is it too late to stop foreclosure and is bankruptcy your...
Read More

How to Avoid Being a Victim of Scam Calls for Student Loans

Scam Calls for Student Loans Student loans are one of the biggest burdens faced by college attendees. Even students who...
Read More

Can Medical Bills Be Included in a Bankruptcy? Here’s What You Need to Know

Can Medical Bills Be Included in a Bankruptcy? Medical problems are stressful enough without facing a significant debt burden after...
Read More

I’m Unemployed. Can I Still File for Bankruptcy?

Unemployed Bankruptcy Being in debt is bad enough, but if you’ve lost your job recently or accumulated debt because of...
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

NACBA Logo comodo avvo1 avvo2 avvo3 LEA BBB Logo RG Seal

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