How to Deal With Debt Collectors

Intro: Debt collectors can be very aggressive. They will call you and harass you trying to get you to pay up. Ignoring them is not the right way to handle the situation. Follow these steps to deal with debt collectors.

Step 1: Answer their calls. If they are calling about debt you owe which you can’t pay, let the creditors know that you can’t pay the debt right now. Give them a short response to why you can’t pay; don’t say very much. You should then let them know that you will get back with them shortly.

Step 2: Negotiate a settlement for your debt. Creditors may be willing to take less than what you owe them. Try to come to a solution which you can afford to pay. You can try to negotiate a final lump sum payment or a monthly payment that you can afford.

Step 3: If you are threatened by the creditor or unreasonably harassed, you should ask to speak with the debt collector’s manager. You may want to think about contacting a lawyer and possibly suing the debt collector.

Step 4: You do not have to take money out of your retirement fund to pay creditors. Any money in your retirement fund, an annuity, or insurance policy cannot be touched by creditors.

Step 5: If the debt collector is harassing you over money which you don’t owe or a debt which is outside the statute of limitations, you can write a “Cease Communications” letter to the debt collectors. In the letter, you should explain that you are not the debtor and demand they stop contacting you. You may need to also have to point out the statute of limitations which expired. Once filed, this letter means that the agency can’t contact you anymore.

Tips: Deal with debt collector’s by not ignoring their calls. You should tell them why you can’t pay and let them know you’ll be in touch with them shortly.

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Warnings: If any lawsuits arise, you should speak to an attorney.

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