How to Appeal to a Collection Agency to Deal

Effectively negotiating with a collection agency to clear or reduce a debt will depend on your ability to negotiate, your ability to pay and your knowledge of collections laws. Knowing your financial situation and how much you can actually afford to pay each month, as well as what the agency expects to collect, will give you an edge for negotiating the best deal for yourself. You need to be as confident and knowledgeable as the agency that wants to collect from you in order to be successful.

Instructions

1

Determine the age of the debt and research the collections statute of limitations for your state. In some cases, the statute of limitations in your state may have passed, making it illegal for either creditors or collections agencies to actively pursue you for payment. Usually this limitation is three years, but each state has different laws. Keep in mind that if you have agreed to pay money against a debt or have actually made a payment against a debt, the statute of limitations defense may be null and void.

2

Make a budget. Before you contact the collection agency and commit to payments that you can't afford, sit down and take a realistic look at the money coming in and the money going out. Collection agencies are notorious for trying to collect as much money as possible as quickly as possible and are very good at what they do.

3

Analyze your debt. The first thing to understand about collection agencies is that there is a built-in expectation to collect much less than what is owed. As a matter of fact, the older the debt, the less likely an agency is going to be successful at collecting it. When beginning your negotiations with the collection agency, know that they will aim high. You should start your negotiations low, at around 25 percent of the debt owed, so that you will meet in the middle.

4

Offer to pay more in exchange for removal of the collection item from your credit file. More important than getting the collector off your back is getting your credit back in order. It is well worth paying a few extra dollars to the agency to have the item completely removed from your credit report. Having the account marked "Paid Collection" is not good enough. Request that the item be removed from your credit report and get the company's agreement in writing.