How to Deal With Debt Collection Agents

In general, when the debtors have dragged their outstanding balances for too long, normally for more than 6 months, there is a high possibility that the debt collectors will be taking over their accounts. Seriously speaking, negotiating with the debt collection agents is a more challenging task.

Let me share with you some useful tips so that you can handle the situation in an easier manner. Don’t be panicked when you receive the first phone call from the debt collection companies. Stay calm and speak to the collectors in a courteous manner. Take a deep breath and start your conversation. Tell them that you need some time to gather your documents. You will call them back as soon as possible.

While you are in the midst of preparing your second call, you are reminded to find out who your original creditor is, your original debt amount, account number, interest rate, terms of repayment, etc. Once you get all the related information on hand, you can start contacting your collector.

First thing first, inform the collector that you can’t afford to make full payment on your debt due to the financial hardships you are facing now. Make your request politely to see whether the collector can allow you to reduce partial of your debt. You can propose a settlement amount which you can afford to pay. If possible, start proposing a lesser amount so that you can leave some rooms for further negotiation. Sometimes, the negotiation process lasts long because there is no mutual agreement from both parties. Hence, you are advised to be more patient. Don’t be afraid if the collector is threatening you or bullying you. State your intention to file bankruptcy if the collector doesn’t want to tolerate. Normally, the collector agrees to reduce at least 40% of your original debt. In order to keep a proper record, you are reminded to jot down the details of the conversation between you and the collector, including the date and time of the conversation. This step is important especially when there is a dispute.

Now, come to the final part. You must make sure that you receive a written agreement from the debt collection company before you pay off your debt. This is to ensure that the collector will not collect the forgiven debt from you anymore in the future. Once the payment is made, you will become debt free then.

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