Between harsh phone calls, bills in the mail and threats to garnish your paycheck or take you to court, you may feel unequipped to negotiate with debt collectors. Additionally, your stress may double if sky-high interest rates are keeping you from making headway on your payments. However, if you take the time to develop a proposal, you may be able to convince your debt collector to reduce your interest rates -- which can significantly reduce the time it will take you to repay your debt, and help you to finally cut all ties with the collections agency.
Instructions
- 1
Decide in advance exactly what you're going to ask for, and overcompensate. For example, if you want a 10 percent reduction in your interest rate, ask for a 15 percent reduction. This gives you some room to rebut any counter-offers that the debt collector suggests.
2Ask to speak with a supervisor if the debt collector says they can't help you. Continue asking to speak with the next person up if everyone claims there is nothing they can do. Sometimes perseverance is all you need to strike a deal.
3Write down the terms you agree to while you converse with the collector. Save your notes from the phone conversation, date it, and write an agreement that includes everything you discussed. For example, an agreement may be as simple as a single statement: "(Name of debt collection agency) has agreed to reduce my interest rate to 2 percent and accept 50 percent of my total debt as payment in full."
4Request a written confirmation from the debt collector at the end of your agreement. Keep a hard copy of this document with your notes from the phone conversation. Sign and date your agreement and mail it to the debt collector.
5Wait to receive a written confirmation back before you make any payments on your debt. When you do make payments, use paper checks. The more physical evidence you have of your payments, the better prepared you are in case the debt collector tries to back out of the agreement or take you to court.
0 comments:
Post a Comment