How to Negotiate with Bill Collectors

Bill collectors are relentless, and they'll call your house or place of employment for a payment. Ignoring bill collectors may seem like a logical approach if you don't have the money. However, ignoring the telephone calls doesn't make the problem disappear. If anything, collectors are less willing to negotiate when you ignore letters or phone calls. Communication is the key to negotiating with collectors and resolving debt.

Instructions

1

Settle for less than you owe. Agree to pay something on the account. Communicate with your bill collectors and negotiate a pay off amount to satisfy the debt and stop all collection attempts. Make a reasonable offer. For example, if you owe $2,000, offer a settlement of $1,000.

2

Restructure the debt. If your current terms inhibits regular payments, ask your creditors to restructure or change the terms of your agreement. Suggest a lower interest rate or monthly payment to increase affordability and alleviate late payments or delinquencies.

3

Request forbearance. If you don't have the means or ability to make payments due to money issues, discuss your hardship with your collectors and negotiate a forbearance period. Payments are not required during forbearance, but some creditors will continue to charge monthly interest.

4

Retain proof of agreements. Once your collector accepts your settlement, agrees to change the terms of your account or grants a forbearance, ask them to put everything in writing and mail or e-mail you a copy of the agreement for your records.