Financial difficulties may happen to the best of us despite our best efforts, and many people are finding themselves dealing with debt collection agencies.
Here are ten tips to make dealing and negotiating with creditors a little bit easier.
1.
Be honest The best tip for dealing with creditors, especially if there are multiple debt collectors involved, is to be honest.
If you've lost your job, don't be embarrassed to say so, and never make promises or financial commitments that you cannot keep.
Doing so will only cause the creditors to think that you aren't trustworthy, and they'll be less likely to work with you to arrange a reasonable payment plan.
2.
Be aggressive Creditors aren't the only ones who should be aggressive when it comes to debt collecting.
If you aren't able to pay your bill on time or make a prearranged payment when promised, call before the due date and explain the situation.
If the bill is past due, still call and offer to remit the payment as soon as possible.
3.
Consider debt consolidation Depending on the amount of debt and number of creditors, you may want to consider debt consolidation to lump all of your debts into one manageable amount.
4.
Know the facts When calling or speaking to a creditor about one of your accounts, be sure to have all of your information in front of you, including account numbers, past bills, canceled checks, and receipts.
5.
Make an effort Even if you aren't able to make the minimum monthly payment, send a smaller amount to show that you are at least making an effort to repay your debt.
6.
Negotiate Most creditors earn a commission based on a percentage of unpaid debts that are collected.
The best time to negotiate a good deal with a creditor is during the last week of the month, when they are trying even harder to make their quotas.
Inquire as to whether or not it would be possible to forgo additional charges that were assessed after the account was closed or in arrears.
Many companies will offer to eliminate the over the limit or overdue fees on credit cards if you are able to make regular, substantial payments.
7.
Remain calm Having the right attitude when dealing with creditors can sometimes mean the difference between a very frustrating situation and the chance to successfully resolve the issue.
8.
Stay in touch Many people would rather ignore correspondence from creditors rather than deal with the problem and work toward a solution.
Avoiding calls or not returning calls when promised will more than likely tell creditors that you really aren't serious about repaying your debt.
9.
Stay the course Set up a monthly budget and stick to it, being careful not to accrue any additional debt.
If you've arranged a payment plan, be sure to hold up your end of the bargain and send payments in on time or call to explain the situation.
10.
Take charge of your finances Once you have repaid all of your debt, or are making regular payments, it's time to regain control over your finances to ensure the situation doesn't repeat itself.
Get rid of any and all credit cards, at least until your accounts are no longer in arrears or over the spending limit.