Paying off a past due balance while ordering more products


Since 1995 my husband & I own a small company. Around 2007 we aquired a lot of debt through our vendor who we still currently use. They put us on COD in ’08 while paying what we can (average of $200 a mon.) on past debt. Everything seemed fine, now they want more money a month ($500.00 a mon.) which we just cannot afford. If we don’t accept that, they will put our account on hold preventing us from getting our supplies that we pay COD. What are our options? We have thought about going to the Director of Credit through the company and trying to negotiate a settlement. If it weren’t being the only supplier in our state, I would continue to pay the $200 a month and let them put our account on hold and use someone else for our current supplies, but that is not an option. I sure hope you can give me some insight on this matter. I’ve spent the last 2 evenings searching the internet for any solution. Thank you! Mysti

Dear  Mysti,

If you are paying COD for purchases while you pay down a past due balance, it is very unlikely you can negotiate a settlement on the past due balance.  That might only happen if you were no longer purchasing from this vendor.  When they offer a settlement, they lose money, and all of their profit.

Your options are to pay off what you owe so you don’t have the past due balance and then continue to pay COD for future orders so that you don’t ever have a balance due and therefore would never have a past due balance. If you cannot pay the balance you owe them but still want product from them, being a business person I am sure you understand they must be paid and cannot offer you continued service without being paid. You could try going to your local bank to get a loan for the amount you owe this company, that way you can make payments to the bank that might be more affordable for you and you could continue ordering from this company on a COD basis to avoid getting further into debt.

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