If you have debt obligations, you may find it difficult to manage these debts. Fortunately, you can negotiate with a debt collector for successful debt settlement. You can decrease the number of installments so that you can easily make an arrangement of debt payments.
Debt collection is common among lots of financially responsible customers. You may forget to pay your bills or lose your billing statement to keep the record of your current debt. It is essential to take care of your debt collection to avoid collection calls. You have to do this to improve your credit score. It will decrease the risk of being sued for a debt.
With proper negotiation, you can split debt payments to make them manageable. It will put you in a better position to deal with your debts. The goal of a debt collector is to make as much money as possible, and they can do this in two ways, add fees to your debt or earn a profit on debt amount.
Understand Your Rights as a Debtor
Before negotiating with the debt collector, you should understand your rights. Keep it in mind that debt collectors are more experienced and clever than you. They know hundreds of methods to take your advantage. If you want to deal with debt collectors in a better way, make sure to understand these points.
- You are liable to receive the calls of debt collector from 8 am to 9 pm. After this time, they can’t call you so you can avoid their calls.
- They are not allowed to use blasphemous language while talking to you.
- They can’t pester you at any cost.
- They are not allowed to threaten you with an illegal action.
- A debt collector can only talk to your friends, family members, and employer to take your contact information.
Debt collectors may try to make a call, send letters or emails to collect a debt. They may list a debt on the credit report of the debtor within the time limit of credit reporting. You can stop letters and calls by asking your debt collector to stop calling you. Although, you can’t remove a debt collection from your debt report unless it is inappropriate or beyond the time limit of credit reporting.
Always Consider a Legitimate Liability
You can’t take debts for granted because you have to check if the debt collector is asking for a valid debt. Debt collectors are famous for their attempts to collect extra payments on debts or pursuing phony debts. You have to approach debt collectors with some cynicism. You are rightful to ask a debt collector to verify that you actually owe this amount. Get a proof of debt in writing. Once you ask them to prove their validation, they can’t continue their debt collection from you until you get the right proof from them. If you are satisfied with the proof of debt collector, you can continue with remaining negotiations. Otherwise, ask the debt collectors to stop contacting you and send this case to credit bureaus.