Are you falling behind on debt? If yes, then it is possible that you get a number of calls from debt collectors. This is very stressful, and as you worry about how to answer the debt collector. But it is not a reason to get panic but to come up with a plan of action.
Dealing with a debt collector can be an unpleasant experience. Especially when you are trying to strike a deal with them, and they are not cooperating. Here are some of the best ways to negotiate with a debt collector at your door:
Know Your Debt
When a debt collector calls you or visits you to collect a debt, he or she gives you some information when contacting you. If you are not satisfied with the info provided by the debt collector, then you can ask for more information on your debt.
Further, if you are not sure who you owe money to or how much you owe, it’s better to ask and know about it. When you dispute a debt or some part of it, then within 30 days of receiving a written notice, the debt collector has no right to contact you again until it sends you verification of the debt in writing.
Know Your Rights
Before you negotiate with a debt collector, it is better to know your rights. Otherwise, debt collectors can take advantage of you as they have more experience than you in dealing with debts.
You should be aware of some of the following things:
- Debt collectors can call you between 8 a.m. and 9 p.m.
- No debt collector can harass you or use foul language when talking to you.
- Further, they can’t threaten you as it is illegal.
Another important thing is that the debt collectors can attempt to collect money from you through calls and letters. They can also list a debt on your credit report as long as it falls under your credit limit.
Figure Out What You Can Afford To Pay
Paying off debt is very important for your good credit score and reputation as well. Further, it helps you get approved for credit cards and loans. So, you need to find out the best way to pay your debt.
It is up to you how you can pay – in a single lump sum or in small payments. Remember that the debt collector always wants to collect the maximum debt from you. And, there are minimal chance that they like to get paid from you in small installments.
Make sure you have arranged the money and have proper funds to pay what you’ve offered. Once the debt collector agrees, you may only have a small amount left to pay. This is called debt settlement.
Get It In Written
When debt collectors calls you or visit you, take settlement or repayment plan in writing from them. Ask for the written settlement once you reach negotiation.
Before you check the agreement and receive everything in written, do not pay any money. If you pay before receiving the written confirmation, you might face some trouble in the future.
Consult a lawyer or counsellor for debt negotiation help!
If you are not able to handle the debt negotiations with debt collector, then you can reach professionals for help. They can handle everything on your behalf and help you with good negotiations.