Credit report disaster: Originally I owe approx.5K in debt now it's 30K because I couldn't work or pay HELP!

Credit report disaster: Originally I owe approx.5K in debt now it's 30K because I couldn't work or pay HELP!

Compound interest has made it impossible for me to pay off debt. There is no way I can pay now that I can work. I don't know where to turn to. I wish to pay only my original debt. I want to do this without filing for bankruptcy. What can I do?

The Answer : There is no way a collection agent can justify adding that much to the original debt. Therefore, your very first step is to send them a letter and demand validation. Make them show how the calculate this amount.I was helping someone with a similar problem. Collection agency sent a demand for $6000. I had them send for validation....and got nothing back. Two months later another collection agency send her a letter....for $9000. Sent another letter, this time pointing out that they were obviously in error and risked a lawsuit for fraud.. Next letter now claimed the amount was $6500 but still didn't validate the debt with any proof. So we sent yet another letter to them. No response....one month later we get another letter from a 3rd collection agency! Yup...differant amount. Make them prove it!