Three Great Ways To Negotiate With Debt Collectors
It is true that there are laws to protect consumers’ rights when it comes to collection of debts, but despite that, dealing with debt collectors has never been an easy task. The best way to deal with them is to repay the outstanding dues. But, if you are not in a kind of financial situation, where you can afford those monthly payments, a wise strategy is to negotiate with the agency that has been authorized by your creditor to collect debts. Just showing the right attitude that you are willing to make the repayment will make things very easy for you. Do not avoid them; face them. Talk to them about your financial condition and ask them to suggest you a way. Show them that you are serious about or other debts. This strategy may open new doors that will not only save you from the harassment but will also help you achieve a debt-free life.
Ask Them To Provide Proof Of Debt
Sometimes, debt collectors harass consumers for very old debts that are now beyond the statute of limitation; this is illegal. In the US, a creditor can collect debts within a specific time period, which can be several years. The statute of limitation may vary depending upon the state you live in. For example, if the statute of limitation for a certain kind of debt is three years, it must be collected within this specific time frame. After this time frame, you cannot be sued for the payments. Therefore, the first thing you have to do is to request the collectors to show you the proof of debt. When a written request is made in this regard, it must be responded to within 30 days. If no proof of debt is provided within thirty days, all collection attempts must be stopped. You cannot be made liable to make the payments.
Negotiate A Repayment Plan
Whether it is your creditor or debt collectors, all they want is their money back. Therefore, if you are unable to repay in full, you should talk to them and request for an affordable repayment plan for the dues. If they agree, get an agreement in writing. Once you have this written agreement, you can continue making the payments as per this new plan, where you will have to pay a certain amount of money every week or month. All collection attempts will be stopped once you start making the payments.
The Option For Debt Settlement
You may also like to talk to them and ask if there is any option of debt settlement. This option can be suitable if you want to get rid of the debts quickly. As per these programs, you may be asked to pay a certain percentage of the total amount of debt in a one-time lump sum in full settlement of the debt. As said earlier, they only want their money back. Something is better than nothing – sometimes, they follow this formula and accept such proposals. So, this option is also worth giving a try.
Overall, if you take a wise approach toward the problem, you should not find it very difficult to negotiate a favorable deal with .