12 Effective Tips to tackle the Debt Collectors

When you are negotiating with your debt collectors, use your consumer rights and keep a record of all the communication done. You can hold your debts in the following ways:
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Learn your rights: A debt collector should play fair games while collecting the debt form you. Get a free brochure on debt collection from the National Consumer Law Center at (617) 542-9595.

Many states have their own set laws. For complete information, you can get in touch with the attorney general in your state.

When you know your rights, debt collectors can't force you with their illegal tactics.

Prioritize your bills: You are aware of the expenses in your family this month. Suddenly a collection call comes up asking for payment on an unpaid account. You just don't have to give it the utmost importance and hurt your financial management. Prioritize the bills that have to be paid in the current month and execute your plan.

Estimate how much you can pay and offer less: Don't do anything that you won't be able to do. It is always suggested to avoid sending post dated checks or agreeing to automatic withdrawals from your checking account. Many people are getting scammed by these practices.

Don't tell them your life story: Don't get lengthy in explaining your financial situation. The debt collectors are used of hearing such stories day in and day out. Talk to them till the required point.

Keep private information private: Don't give information about your place of work, your bank accounts. Whatever you say, stick to it. Don't fumble with your words.

Stay calm and focused: Do not lose your temper while dealing with debt collectors. They will try to bully you but you should try to remain focused on the negotiation. This will give you successful results.

Tape the call if you can: If recording the phone call is permissible in your state, do it. Otherwise, you can start recording after informing the other party about your move. This recording of the conversation will keep them in the best of their behavior.

Take notes: If you make any deal with a collection agency, you should be able to prove it. Record all the phone calls with the date and time of each call made. Along with it, put the name of the person on the line and the description of the call.

Get proof of payment agreement in writing: If you are entering into a payment agreement, you need to get that in writing. If they are placing any offer in front of you, have it in writing. Outline the agreement on the payment schedules. Send it through certified mail with return receipt requested. This will help you to track down your letter sent to them and keep a record of it.

Wipe your credit clean: collection agencies put negative information on your credit file. Ask them to clean it. Also get in written from them about the status of your account to be shown as ‘paid in full' or ‘paid as agreed'

Don't be rushed: Don't panic when the collection agencies force you to make payments. You should not do anything until you have agreed on it in writing. Don't get carried away by sudden quick offers placed to you. Have everything in writing.

Negotiate at the end of the month: The collectors are paid heave incentives on each collection depending upon the type of the debt. Enter into a negotiation near the end of the month. You might catch up with a very good deal.

If you are able to exercise the following tips when dealing with the CA, I guess they will be the ones to step back or use fair collection methods.

Regards
Roxette