Many clients struggling with debt do not want to suffer the dramatic hit to a credit score that bankruptcy may cause. However, debts owed to creditors cannot simply be ignored, and collection agencies often use harassment and aggressive tactics that make settling debts difficult for the average person.
The Law Office of Kristy Hernandez offers affordable debt settlement options, but for clients who want to try and settle debt on their own, there are some helpful tips that can make the debt settlement more bearable and may even save you money. Here are some helpful hints:
1. Realize that Credit collection agents are usually working on commissions. This is a JOB to them and the more they get you to pay, the larger their paycheck. They will be persistent, so be prepared.
2. Don't argue with the agent, because you will lose. This is what they do all day, every day and they have heard every excuse in the book. They are prepared with an answer to everything. State your case, but don't argue.
3. It usually doesn't help to ask to speak to someone's boss. In this case, talking to the supervisor normally won't help (in fact it could be worse). Remember, he ended up with his job because he was good at what he did and was able to squeeze every dime out of past consumers who had disputes.
4. Never give information out over the telephone to a collection agency. This includes your driver's license number, social security number, debit card numbers, check numbers, credit card numbers, or bank account numbers. They should already have this information.
5. Use a money order or certified funds to make all payments. Make a copy of it and staple it to the bill.
6. Keep records of everything (including dates of phone calls and what was said), and make sure that anything sent through the mail has a return receipt.
7. Make sure you get written confirmation of any deals or negotiated payoffs. Make sure you have something that says the collection has been satisfied.
8. Never take their first offer when negotiating a lower payment as they will always call back with a better offer.
9. Use powerful sentences, such as, "This is all I can afford to pay," rather than, "This is all I am going to pay."
This is a much better negotiation tactic when you are trying to lower the payoff with the collection agent.
10. When repairing your credit, it is a good rule to keep copies of all your credit reports. That way you can track the process of what has been repaired and make sure that what you negotiated is coming to pass.
While it would be impossible to include everything there is to know about dealing with collection agents, these 10 tips will likely result in more money in your pocket and less in theirs. If you have questions about the debt, we offer free consultations.