Before you start
For US consumer debts handled by a collection company. FDCPA protections apply to covered collectors, generally not original creditors collecting their own accounts or business debts. State law, the contract and any court order may change the analysis. This worksheet organizes terms; it does not approve a contract.
1. Verify the account before reviewing the offer
Use your existing account records and independently verified contact details to identify the current creditor and the company making the offer. Write down whether the company claims to own the debt or act for someone else. Ask who can authorize the proposed settlement; a familiar company name does not answer that question.
If the debt, balance or ownership remains disputed, use the verification or dispute resources first. For an old debt, get advice about the applicable law before signing, making a payment or promising to pay. Those actions can affect the time allowed for a lawsuit in some states. Do not treat a small “good faith” payment as a harmless verification step.
2. Identify the exact promise in writing
A settlement for a reduced total, an installment plan for the whole balance and a temporary pause in payments are different arrangements. Underline the sentence describing what happens once every condition is met. If the offer only gives a monthly amount, ask what balance would remain after the proposed payments.
The CFPB recommends getting the plan and the collector’s promises in writing before payment. Keep the entire document, not just a portal screenshot that omits conditions. Mark any oral promise that is missing from the written version as an unresolved question.
- Which specific debt and creditor does the offer cover?
- What total amount and dates must be met, including any separately stated charges?
- What happens to the remaining balance and further collection after successful completion?
- What reporting or completion document does the company say it will provide?
3. Match the schedule and your available money
Add the initial payment and every later installment. Compare that total with the offer, and check whether a fee is already included before adding it again. A difference is a question to resolve, not evidence by itself that the offer is invalid.
Next place each date beside money you expect to have available after essential bills and a necessary reserve. A monthly average can hide a payment due before payday. Record any larger final installment, processing cutoff or condition about when money must arrive. Keep payment authorization separate from the agreement itself.
| Check | What to record |
|---|---|
| Arithmetic | Initial payment + later installments + separate charges. |
| Timing | Each due date and the stated processing or receipt condition. |
| Method | Verified recipient, permitted payment method and any authorization. |
4. Read the missed-payment and court terms
Find the part about a late, missed, returned or short payment. Does the document describe notice, a chance to correct it, extra charges or loss of a discount? Copy the actual wording into your private file and ask for clarification. Do not assume there is a grace period or that a small shortfall keeps the arrangement active.
If there is a lawsuit, judgment or proposed court stipulation, get legal help with those documents. A collector’s agreement or a conversation does not automatically dismiss a case, satisfy a judgment or extend a court deadline. Verify court status separately through the court or your lawyer.
5. Keep the agreement and proof together
After deciding how to proceed, retain the final agreement, any written changes and each payment confirmation. Label a bank entry “posted,” “pending” or “returned,” rather than assuming that a scheduled transfer was received. Ask how to obtain written confirmation of completion when all conditions have been met.
Keep a final balance or completion response with the original offer. If later collection contradicts the records, prepare a specific document-based question or dispute. Paying a collection account does not guarantee removal from a credit report or a higher score.
Fictional example: the sum matches, but one condition is missing
An offer states a settlement total of $750. It lists $150 initially and three later payments of $200, with no separate fee in this example. The arithmetic is $150 + $200 + $200 + $200 = $750.
The copy does not explain what happens to the remaining claimed balance after completion. The reader marks that item “not stated” and requests the complete terms before deciding. This calculation does not verify authority, acceptance, legal enforceability or release of the debt.
| Item | Amount |
|---|---|
| Initial payment | $150 |
| Three later payments | $600 |
| Scheduled total | $750 |
| Difference from stated $750 | $0 |
Before you finish
- I separated an offer from an accepted agreement.
- I identified the creditor, collector and covered debt.
- I checked the total and every payment date.
- I located completion and missed-payment conditions.
- I kept unresolved points and any court papers for review.
Summarize the proposed agreement
Use short labels and document references, not full account numbers, bank details or an SSN. These notes are for your own review and are not an acceptance or a message to the collector.
Optional notes stay in this page's memory. This worksheet does not send or save your entries. Do not enter account numbers, passwords, Social Security numbers, or other private information. Downloading or printing creates a copy you control.
Keep this summary with the full document and resolve missing terms before deciding whether to accept or pay.
Check the amounts in a proposed written agreement
Copy the amount the writing says will settle the debt and the listed payments. Keep the initial payment, equal regular payments and a separate final payment distinct. Use the note fields above for the scope, dates, authority and consequences you still need to confirm.
Proposed total = initial payment + number of regular payments × regular amount + separate final payment. The count excludes both the initial payment and the separate final payment. If there are no regular payments, enter 0 for both their count and amount. Enter 0 for a final payment only if none is due; do not count the last regular payment again.
Amounts are in USD, from 0 to 1000000000, with a decimal point and up to two decimal places. Do not use commas, currency symbols or scientific notation. Enter 0 for a known zero; leave unknown amounts unresolved rather than guessing. The number of regular payments must be a whole number from 0 to 120.
Questions you may have
Does paying the first installment prove the whole debt is settled?
No. The payment is evidence of a payment. Its effect on the debt depends on the agreement, completion conditions and applicable law.
Can I rely on “your account will be closed” over the phone?
Ask for the complete promise in writing and what “closed” means for the balance, further collection and reporting. The phrase alone leaves important questions unanswered.
Will a settlement remove the collection from my credit report?
Payment or settlement does not guarantee deletion or a score increase. Keep the reporting terms and check later reports for accuracy.