How to Deal with Debt Collection Agencies

Debt collection agencies calling you constantly? You avoid answering the phone when collectors call? If you want to stop them from harassing you and even help you back on track, get bill collector negotiation tips that may come in handy.

Debt collection agencies are calling you for your creditors or themselves. They are paid according to the amount of money that they recover from you. Although they often use various tactics for extracting funds from you, to a certain extend they are willing to negotiate with you.

How Debt Collection Processes Work

debt collection agenciesIf a debt collection agency contacts you it usually means that your creditor hasn’t received debt payment from you for several months. When you are behind in your payments, your creditor will use many debt collection steps when trying to receive payment.

They may also take legal actions such as repossession, foreclosure, wage garnishment and many more. Once they’ve decided that their chances of recovering the debt are small they’ll write off the loan and sell it to a debt collection business.

The debt collector can come from an in-house collection function of your lender or from another company. A third-party collection agency might work for your creditor for a fee or a percentage of the amount of money that they recover from you, or they might buy your bad debt from your lender.

No matter what position they may have it’s in their best interest to recover as much money as possible from you. This is especially true for debt collectors that buy your bad debt. They will use all sorts of aggressive tactics to extract funds from you — whether you can afford it or not.

Negotiate Debt Settlement with Debt Collection Agencies

A bill collector job is to collect money. When a collection agent calls, tell them about your situation. They will try to intimidate you; but stay calm and cool. No matter what reasons you have letting them know that there is something keeping you from paying them is important.

Once you’ve explained your situation, listen to what they have to say. Find out whether they are willing to offer help and the person offers a doable solution, accept. However, if they don’t offer a solution, ask if there is any way to pay within your reach.

If the person you speak with can’t have the authority to extend the help you need, ask to speak to a supervisor who has the authority to get your payments current. Explain your situation with the supervisor and tell him or her what you should do to get your payments current.

What If the Debt Collection Agencies Won’t Help?

If this happens to you, try to work something out with other creditors so that you can afford to make payments to everyone.

By negotiating a new repayment plan you’ll keep both parties happy. They can get their money back as you can afford to make the payments. If that doesn’t work, consider talking to a debt counselor,  who understand the Fair Debt Collection Act and are qualified to work out deals with creditors that consumers may not be able to.

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How to Deal with Debt Collection Agencies was last modified: May 16th, 2014 by Paul Sarwana
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