Seeing that same phone number on your caller ID several times a day or a week, and knowing it's a credit card collection company, can be intimidating. Don't be a victim of the collection attempts. Instead, be prepared to negotiate with the credit card companies. Get your information together and call them back, on your terms, when you are armed with the information you need to negotiate your best agreement.
Don't Risk Your Health
When negotiating with a credit card collection company, know your finances. Have a list of expenses that you must pay every month such as rent, utilities, food costs and transportation in front of you. Total these expenses and compare it with the income you produce on a monthly basis. When negotiating a payment agreement with a credit card company, do not agree to anything that would result in the payment plus your list of monthly expenses exceeding your monthly income.
Do Not Provide Your Checking Account Information
Send your payments on your own schedule. Do not give the creditor access to your financial accounts. According to debtxs.com, once you have sent a creditor a post-dated check, that creditor can attempt to cash it. The same situation applies once you have supplied banking information such as your routing number and account number. Don't make it easy for the creditor. Even if you agree to a payment plan, keep control of when you send that payment in your hands. If they have your account information and agreed-upon schedule, the creditor now has control over that payment instead of you.
Negotiate About Your Credit Report
Once you have agreed to set up a payment plan, do not finalize it until you discuss your credit report. As part of your negotiations, if you agree to a debt settlement plan for paying less than the full amount, request that the creditor note on your report that the debt is paid in full. This will avoid the damage to your credit report that a note that you settled for less than the full amount can cause. Also request that the credit card company remove any previous negative reports on your credit. Make this a part of your agreement. It's not guaranteed that the company will agree to this, but it won't happen if you don't ask.
Don't Make a Payment Until It's in Writing
Don't assume that the agreement on the phone is final. Get it in writing. This way, if the credit card company fails to follow the agreement, you will have a written copy for any legal action you take. If you act on the phone call without documentation, the credit card company can deny the conversation occurred.
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