Collection agencies usually have the authority to accept a repayment plan that makes sense based on a consumer's situation. As a result, an allowable payment is determined from the information that you provide the agent.
Misconceptions
Do not send an arbitrary $5 monthly payment without a verbal or written agreement, as it may not prevent further collection activity on your account.
Prepare Your Budget
Prior to negotiating a payment plan with the collection agency, calculate your monthly expenses to determine the amount you can pay on your debt. Know your income and expenses well enough to communicate clearly with the agent.
Communicate
Contact the collection agency by phone to negotiate a payment plan. Explain your situation to the agent and begin your negotiation at a lower amount than you can afford; this will allow the agency to negotiate upward.
Escalate
If the collection agent refuses your offered payment plan, then escalate your call to management and restate your case. If necessary, escalate your call to the management level at your original creditor for your resolution.
Know Your Rights
Preview the Fair Debt Collection Practices Act, as it was designed to protect you against unfair practices involved with the collection of debt through a third party.
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