Tips for Negotiating with Debt Collectors
When dealing with a debt collector you’re basically going head to head with a professional negotiator. Use these tips to help gain some of the knowledge needed to help you come out ahead.
Know Your Rights
Federal and state laws outline rules that a debt collector must follow when collecting a debt. For details, read the federal debt collection laws and state debt collection laws here. What this means is that if you know your rights, debt collectors will know that they cannot get away with certain behaviors and tactics and they won’t try those on you and if they do, you know that you’ll have evidence of a lawsuit and can contact a Fair Debt Lawyer.
Negotiating
Prioritize Your Bills – Regardless of what a debt collector says to you, paying towards an unpaid credit card bill is not the most important bill you have, providing necessities for yourself and family come first.
Estimate Payments You Can Afford – Estimate how much you can afford to pay and offer less. Avoid stretching yourself too thin, sending postdated checks, or agreeing to automatic electronic payments from your checking account. Keep payments in your control and the amounts equal to something you can afford each month.
Be In Control – Control the information that you share with a debt collector. Do not give them a lengthy explanation of why you cannot pay. Also, do not share private information about yourself such as where you work, where you bank, or your account numbers.
Stay Calm & Focused – Regardless of the tactics that a collector may use on the phone, keep yourself calm and in control and focused on the negotiation. The more in control you appear, the more likely you will be to get what you want.
Record Calls If You Can – Recording a call is a great way to keep a debt collector in line plus recordings of a call are helpful should you pursue a debt collector harassment lawsuit. State laws govern the ability to record phone calls. Use this website to read about call recording laws in your state.
Keep Records of All Communications – Keep an accurate and detailed file of allow collections letters and notes taken during your phone calls. Note the day and time of each call, the name of the collection agency, the first and last name of the caller and what he/she said. You may find this Debt Communications Log a handy layout to follow.
Always Get Proof in Writing – Once you have negotiated a payment plan, get it in writing. Send a letter yourself outlining the payment agreement and send it via certified mail so that you’ll have a receipt of delivery for your records.
