In the United States, the consumer debt reached $14.9 trillion.
If you’re one of the people who are in financial debt, you might be dealing with some annoying debt collectors.
Thankfully, we have the perfect guide to help you deal with them, so keep reading to find out how!
1. Don’t Let Them Harass You
Many debt collectors will use abusive practices in order to try and get you to pay back your debt. This might manipulate your emotions, play on your fears, or even harass your family.
Agents can also make threats to you or your family in order to try and make you pay. They might even make you feel guilty or that you’re not a responsible citizen.
If this happens, try to remain calm and be professional. Getting emotionally involved won’t help anyone. Instead, check out this website and hire a lawyer.
2. Understand Your Rights
If you are being harassed, make sure that you know your rights. All debt collection agencies have to abide by the laws set forth by the Fair Debt Collection Practices Act (FDCPA). This is in place to protect consumers from behaviors that some collectors still use today.
For example, it says that they can’t threaten or harass you. When they call, they have to disclose why they are calling. They also need to give you validation for any debt that they’re requesting to be paid.
It also gives you privacy from the debt collectors. They aren’t allowed to contact anyone else about your debt, and you can ask them to stop contacting you as well.
In addition, when they do contact you, they have to call between 8 a.m. and 9 p.m. They also can’t call you at work if you’ve asked them not to.
If a collector does break any of these rules or threaten you with debt that isn’t yours, you should file a complaint with the Federal Trade Commission and the Consumer Financial Protection Bureau.
3. Make Sure It’s Your Debt
If you’re first contacted by a debt collector, make sure that the debt is actually yours. To do this, you’ll need debt validation.
When you do this, the collection agency has to give you documentation proving why that debt is yours. Doing this can help you avoid scams and paying for debt that might not even be yours.
It will also give you more time to be able to make a decision. When you ask for a letter, you have more time to figure out a plan on how to pay that money twice.
It will also keep you from having to pay the same debt back twice. When you look over the letter, you might realize that you’ve already paid off the debt that is in question. If you have already paid it, you should open a dispute between the credit card issuer or the bank.
If you review the debt and it is legit, you can start working on a plan with the collection agency to pay it off.
4. Negotiate
When you do know that it’s a legitimate debt, you should find a way to work with debt collectors to pay it back. You shouldn’t ignore them if they’re abiding by all the rules because they could take you to court if you don’t pay them.
Instead, try and negotiate with them. They’d rather have their money back than not at all. So you could try asking if you can set up a payment plan that works for your schedule and your budget.
Sometimes you can also pay your debt back for less than what you owe. However, this could mean that you have to pay a lump sum off of your debt. When you do this, your credit score can temporarily drop. Sometimes this forgiven amount can also be treated as taxable income.
5. Only Make Agreements in Writing
If you do reach a negotiation with them, make sure that you get everything in writing.
Collectors love to make fall promises and then never follow up on them because you don’t have any proof. To avoid this, never make an agreement with a debt collector over the phone.
Ask them to send you everything they can in an email or through the mail. This way, you can hire legal representation and have evidence to take them to court if they do back out.
6. Watch for Signs of a Scam
In addition to all this, make sure that you keep an eye out for signs that you could be scammed. Sometimes they’ll contact you even if you don’t owe any money. However, people who are in debt are normally likely prey.
If you want to make sure that a collector is legit, watch your mailbox. If you’ve got a phone call but no mail, this might be a scam. You can ask for debt validation, but if you never receive it, it likely wasn’t real.
You should also never pay over the phone. Even if the collector insists you have to pay through a debit card or a wire transfer,
Discover More Ways on How to Deal With Debt Collectors
These are only a few of the common ways to deal with debt collectors, but there are many more things you can try.
We know that dealing with debt can be stressful, but we’re here to help you out.
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