Business

Handling Debt Collectors

Dear Dave,

Do you have suggestions on how to interact with debt collectors? Sometimes they are reasonable and easy to work with, but others are rude and pushy. Your advice would be appreciated.

Paul

Dear Paul,

Youll run into all sorts of collectors, no matter what kind of debt you have. Occasionally they are friendly and understanding, while others can be downright mean and nasty. Whatever their approach is, you have to keep in mind theyre all after one thing—your money.

Most debt collectors prey on a persons emotions and lack of confidence. If you dont know your rights, they can scare you by using bogus threats. Understand what Im saying here, Paul. If you have debt, you have a legal and moral obligation to pay it. At the same time, you need to calmly and confidently control these kinds of conversations. You might have made some financial mistakes, but that doesnt mean you should allow someone to abuse you.

When it comes to dealing with debt collectors, keep track of all the calls and emails. Write down the names of anyone you talk to and when they called. A record of all contact is important, and it will make it easier to report them if they violate the federal Fair Debt Collection Practices Act. If the collector agrees to settle the debt, get it in writing and keep the document as proof in case they “forget” they made the offer.

Also, be completely up to speed on your accounts. Know what you owe, who you owe, and have a record of all the payments youve made. Knowing the facts gives you the upper hand in any situation. Dont be intimidated by debt collectors, either. Calmly explain your situation, the reason youre behind on the debt, and how you plan to pay it off. Dont get emotional and let yourself get drawn into an argument or shouting match. If they insult you,Read More – Source