8 Tips for Dealing with Debt Collectors

Sure, we all want to be able to manage our finances properly. But when things get out of control, you may have to prepare yourself for dealing with debt collectors.

So today I have 8 important tips for what to do when you’re in collection.

Tip #1) Know that you are protected from harassing and abusive calls. When you’re faced with mail and phone calls from debt collectors, the first thing to know is that you have rights under the law.

Tip #2) Did you know you can actually make a request in writing for debt collectors to stop contacting you? You can. You can also request that debt collectors not contact you at your place of employment.

Tip #3) If you are receiving abusive calls, calls after 9pm without your permission, and even threatening calls, you can report any unfair practices to the Consumer Financial Protection Bureau.

Tip #4) Review your finances and see just how much you owe, that the debt collectors are contacting you about. You’ll also want to know exactly how late you are with your account. Pulling your credit report to see what it says you owe, and if there are any inaccurate entries, is a good place to start.

Tip #5) Make sure you deal with the newest debt in question first. Some states have limits for how long creditors can sue you over a past uncollected debt. Plus, after a period of time, your older debt does not affect your credit score nearly as much as your newer debt does.

Tip #6) Your next course of action is to try to negotiate a settlement, so you can settle the debt for a lower lump sum, or lower monthly payments.

If you think the creditor is not playing fair, that they can’t prove you owe this debt, that they are harassing you even after you’ve submitted a written request to stop, that they are telling you details that you know are not true, even if they mistakenly report your debt is 1 Dollar over or under what they say you owe…

Tip #7) Your next move is to get an attorney who specializes in fighting debt collectors. This may not be as expensive as you may think. As attorneys often work on a percentage of the settlement the creditor will receive.

One thing is, even if you win a lawsuit against a creditor, by the terms of the settlement, you still may be on the hook to repay the debt balance in question.

So if you find yourself in this position, it’s always good to consult an attorney who specializes in debt lawsuits. The best place to start your search for this kind of attorney would be at The National Association of Consumer Advocates.

And of course, the best way to not have to deal with any of these unpleasant things is to strive to always be on top of your finances.

Tip #8) If you think you need help taking control of your finances, this special resource could be the answer to your prayers.

Related posts:

Guilty of Not Talking About Your Money Problems?
5 Financial Numbers You Must Track
College Financial Aid Deadlines

Please share your comments and questions