How Do You Persuade A Debt Collector To Create A Deal?

Know What You Are Doing And How To Do It

When you bargain with a debt collector, you are going head-to-head with a tough professional negotiator. You have to know what’s truth and what’s not the truth so they don’t frighten you into a settlement you can’t afford or worse than the original debt.

Many states have their own debt collection laws. You should contact your attorney general’s office or obtain a free consumer brochure on debt, available from the Consumer Law Center. Ask for a copy of “What You Should Know About Debt Collection.”

When you are well informed of your rights, debt collectors know they can‘t get away with certain things and they are less likely to try aggressive tactics. Say as little as possible and stick to the facts.

Don’t give a debt collector personal information such as where you work, where you bank or your checking account number. No matter what a debt collect says, keep your cool and stay focused on the negotiation.

The more in control you sound and the less you fall apart, the more likely you are to get what you want out of the negotiation. Use the power of silence. Do not say anything except maybe “hmm.”

Offering a single lump sum payment is a great way to go. Debt collectors want your money, (that is their number one goal), to be done with you and to move on to the next client.

Prioritize And Estimate How Much You Can Pay

No matter what a debt collector says, an unpaid credit card bill is not the most important bill you have to pay. Providing necessities for your family comes first. Don’t put yourself in that position where you cannot buy food or pay utilities.

Don’t do anything you can’t afford to do and avoid doing anything dangerous. Always start by offering less than what is being asked for.

Because commissions for debt collectors are based on what they do each month, you may want to try negotiating near the end of the month. And at the time when you agree on a payment amount, you’ll want to get it in WRITING.

It’s really important consumers to get confirmation in writing or you’ll have trouble making the deal stick later. You might as well write it yourself and get him to sign it.

Stipulate The Terms

Send the letter via certified mail so you’ll receive a receipt once the letter is delivered.
The letter explains that the collector has agreed to accept the negotiated settlement amount as payment in full for your debt. Keep a copy of the letter for your records.

If you plan to pay by check, add the following disclaimer: “Cashing this check constitutes payment in full.” Write this right on the check. Perhaps paying with a money order would be wiser.

Then ask the debt collector to remove any negative information they have placed on your credit report. At the very least, insist that your account be listed as paid in full rather than paid in settlement. Once they agree, get it in writing.

The collector will push and push for you to send them money immediately. Don’t do anything until you have confirmation of a payment agreement in writing. Because you need it in writing, you have to resist those demands and quick offer to do it overnight.