Powerful Debt Settlement Tips in Dealing With Debt Collectors
Are your creditors bothering you every day? Does your phone never stop ringing because of the debt collector calls? Whether you own hundreds or thousands, these few tips can help you make a compromise with your creditors and reduce your debt by significant amounts.
The first and probably most important part is knowing your legal rights. Knowing where you stand, knowing what you can and can’t do can be a very helpful factor in reducing your debt. Debt collectors will also take you more seriously and give more consideration to your offers if you know where you stand legally.
Calculate your income and expenses and estimate how much you can pay them without putting your needs at risk. No matter what the collectors say, your basic needs such as food, clothes, electrical and gas bills come before paying off debts. Always try to offer and settle for less money than you can actually afford to pay.
Another important factor is keeping all personal information out of the conversation. Try to stay on subject and don’t tell them why you’re broke and can’t pay your bills because they don’t care what you have to say. Also, keep your private information private. Never give out information such as bank accounts, work address etc…
Try to stay as calm and focused as possible while talking to your debt collector. Speak loud and clear and be intimidated at any time. The best way to settle debt is by writing. If you can avoid talking on the phone to you creditors, do so. Communicate with your debt company by letters, and save all of them as proof documentation just in case they try to play a trick on you in the future.
When writing your offer letter, try to make everything as clear and as attractive as possible. If they don’t agree and throw another offer at you, don’t agree to it right away. You don’t have to agree to the first numbers thrown at you, and don’t forget, always save all the documentation for the future.
Another great way of keeping documentation of your conversations with your creditors is taking notes while talking to them. In most states it is even legal to tape your phone calls. 15 states in the United States however require you to let the other party know that they are being recorded. This might help the situation, because if they know that the conversation is going to be on record, the collectors will try to be as nice as possible and you will have a higher chance of getting what you want from the negotiation.
Don’t ever rush yourself to pay everything off as soon as possible. Take your time to review where you stand economically and what you can afford at the moment. Collectors will try to settle everything as fast as possible and make you start your payments the next day. Stay calm and cool, and keep negotiating until you get to see numbers that fit your budget.
Another important tip is knowing what time to talk to debt collectors. Most of them get paid on monthly commissions. At the end of each month they will be more flexible and will try to settle for less money than they would usually ask for.
Even though taking your time to pay your debt is important, it is also important to not sit around for too long. The faster you try to settle your debt the more flexible these debt companies will be. If your debt is fresh you can make them agree to pay up to only 50% of the actual debt.