How To Negotiate With A Debt Collector

Negotiating With A Debt Collector

Negotiating with a debt collector is serious business. Because a debt collector gets paid to track down debtors and force them to pay up, they are often unsympathetic when it comes to your financial struggles. They don’t want to hear about how you just got fired or hear that your kids needs braces. They want their money. Therefore, when negotiating with a debt collector, it’s important that you stay focused and have a plan of action ready.

Tips For Dealing With A Debt Collector

In order to start negotiating debt with a debt collector, you’ll need to keep a few things in mind:

1. You need to prioritize your bills and decide how much you can afford to pay a debt collector. Don’t get in over your head or agree to make a payment when you really cannot afford it. Though a debt collector will make you feel like you have to make a payment immediately, don’t do it if it means you won’t be able to provide for your family this week.

2. Debt collectors deal with debt negotiation every day. They’re pros. So be wary of them. Don’t provide your work address, your banking information or your checking account information to them. Though you are protected against illegal tactics by debt collectors, they are willing to do almost anything to get your debt paid.

3. Keep a record of anything. Collect all the unpaid notices you are sent and record any phone calls with your debt collector (provided this is legal in your state). This will put you in control with the debt collector and make you more confident when you speak to them.

4. If the debt collector makes you an offer–say, you only have to pay half of your debt to satisfy it–get it in writing. Don’t send the debt collector postdated checks or agree to a payment plan verbally. You never know what they’re willing to pull to get you to pay up.

5. Once you agree upon a negotiated debt payment, send the check via certified mail so that you have a receipt. It’s also a good idea to make a notation directly on the check that says something like, ‘Cashing this check fulfills my debt completely.’

Additionally, it might be a good idea to negotiate with your debt collector towards the end of any given month. Because debt collectors are paid based on what they’re able to collect per month, you could get a much better deal by waiting until the last few days of the month. These are just some of the things you need to keep in mind when negotiating your debt.

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