Having a debt fall into collections can be scary, more so if you are not sure that you can afford to pay what you owe. Many people feel embarrassed when this happens and because of that they choose to avoid or ignore the calls and letters they receive from a Collection Agency. The numbers of people receiving calls and letters from Collection Agencies are increasing every day. Because this is such a common problem, we thought of better ways of dealing with Collectors. Today we have compiled for you 7 tips of dealing effectively with debt collectors.
1. Understand that the debt collector is just doing their job.
Collection Agencies get a lot of criticism these days, but it is important to remember that the debt collector is a person just like you. They did not single you out to try and make your life difficult; they are just trying to do their job.
2. Double check facts and figures related to the debt under consideration.
You have the right to ask for written verification If you do not recognize the debt in question or just want to confirm the amount owed. Upon request, the debt collection agency is required to send you an official written notice containing all the information about the debt they are trying to collect
3. Know the law.
Part of the reason debt collectors are loathed is because some of them are less than ethical that do not follow the rules as outlined by the law. Make sure to read the DEBT COLLECTIONS ACT 2015 so that you are aware of what they can and cannot do. Knowing your rights will give you the power to stop debt collector harassment and ensure that you are being treated fairly under the law.
4. Stay calm during negotiations.
While having a debt in collections can be an emotionally trying experience, when you are dealing with debt collectors you should try your best to remain calm. Keeping your emotions in check will allow you to think clearly in order to devise a solution.
5. Don’t ignore the debt collectors.
Ignoring the issue will not solve it. If you choose to avoid answering their phone calls and ignore their notices, the debt collection agency may resort to other means to get in contact with you. In some cases, debt collectors can call you at work and in extreme cases, they can even initiate legal action
6. Work together to devise a plan.
A debt collector’s job is to recover the money a collection agency is owed. If that means working with you to develop a manageable payment plan, they are usually more than willing to oblige. Talk with your debt collection agent to see what options may be available.
7.Use your negotiating skills.
Cash in hand is a powerful negotiation tool. If you are able to pay a reasonable portion of your debt in a single transaction, your collection agency may be willing to accept a reduced payment in the form of a debt settlement. That way, they receive valuable cash flow and you get part of your debt forgiven in return.