Negotiating with Debt Collectors

It's no surprise that calls from debt collectors usually leave people feeling stressed and hopeless. The debt collector is a specialist with an agenda, and they will often use stress to their advantage. With a few tips, negotiating with debt collectors can become easier.

Alternatively, you can avoid the stress by hiring a debt relief agency to do the dirty work. To get a free consultation about how we can help you get rid of problem debt, submit a form now!

1. The first step is to assess your working budget. Figure out how much you could afford to pay each month and for how long. This is the worst negotiated settlement. If your budget allows you to pay a lump sum, this can be a strong bargaining chip to reducing the settlement substantially. Never lead with the worst settlement.
   
   
2. Always record calls with collectors. Have the recorder ready, and let them know about it at the start of the call. Not only will this keep the collectors relatively honest, but it can provide the basis for a civil suit against them.
   
   
3. Collectors are trained to make threats, and they can be hard to ignore. The trick is to remain calm in the moment and ignore threats. Later on, you can assess their validity and legality. Remember, collectors almost always threaten legal action, and they typically do not follow through or even have the authority to make such a decision.
   
   
4. Your budget is your business, not theirs. Collectors thrive off information, and they will use anything you say against you. Keep your accounts, assets and job information off the negotiating table. This will be much easier, if you keep the focus on the total amount owed versus how much you will pay a month.
   
   
5. Don't trust to what a collector agrees to on the phone. Let them know that no settlement is final until you receive the agreed upon terms in writing. Negotiating with a debt collector is not done until you receive formal documentation of the agreement you reached.