It is important for us to properly negotiate with debt collectors. In reality, debt collectors are quite willing to negotiate with us. We shouldn’t pass up this opportunity. As an example, we could make lump sum payments and we will be able to remove bills. In this case, we should be in position to gain more in the negotiation process. We should try to get the upper hand and obtain the best possible deals.
The first thing that we need to do is to ask for details in writing. In general, we should know that if something isn’t written down and validated, it doesn’t happen. Deals can be made on the phone and we should make sure that it is confirmed in writing. We should get written confirmation about any agreement that has been reached. All details should be signed and returned to us and once we get a confirmation, we should file documents in safe place and we could use them during the negotiation process. Many people assume that creditors will always post our payment history, based on the Fair Credit Reporting Act. Unfortunately, this isn’t the case.
At this stage, it is quite likely that our account has been delivered to the debt collection agency. It means that some amount of damage has been inflicted to our credit score. It could be shown in our report as a charge off and we should be able to see that our account is already transferred to the debt collection service. Even if we manage to pay the debt in full, it would already be too late to properly protect our credit score. In this case, we need to know whether we are really able to perform well in the overall debt negotiation process. Again, it is imperative that everything is fully confirmed in writing.
In any case, we should avoid revealing our debit card information or bank accounts details to anyone. When our accounts have been charged off and sold to the debt collection company, things can be quite limited in terms of overall payment options. In general, we should make sure that we have electronic funds transfers using debit cards and other information related to checking accounts. We should know that not everyone is honest out there and they may not have our best interests at their heart. Any information that we give to them can be used to collect the debt.
When we go to their offices and make phone calls, our first priority is to negotiate with them. We could refuse if they ask for our personal financial information. We should look for some wiggle room that could allow us postpone some of the payments or cancel a few late fees. In fact, the debt collection company could be caught off guard when we contact them first, before they begin to chase us. We could go to their office and immediately ask to negotiate for the payment. We may need to do this aggressively, because debt settlement can be a bit like mind game.