How to Bargain With Collection Agencies

It can be unnerving to receive calls from collection agencies. However, not dealing with past-due debts will likely cause you more worry, and it could result in having a judgment filed against you. However, collection agencies wont have all the control if you make a plan for dealing with them. Total up your past-due debt and then decide how you can realistically pay it off either in a lump sum or through a payment plan.

Instructions

1

Remember that a collection agencys goal is to try to get you to pay the full amount of money you owe. Therefore, a collector will typically tell you the full amount must be paid immediately. If you cant afford to pay in full, then explain that. This is when you begin to negotiate with the collector.

2

Resist the urge to agree to a payment you cant afford just to get the collector off the phone. This will only backfire on you when you fail to make the payment, and it will likely ruin your bargaining position if you try to negotiate an amount you can afford.

3

Deflect the collection agency's pressure to get you to pay by offering a settlement to cover part of the amount of money you owe. Begin by offering to pay a lower percentage of the debt in one lump payment, because the collector will likely press you for more. Remember not to promise to pay more than you can afford, and urge the collector to reduce or remove any late fees assigned to the debt.

4

Ask the collector to send you a letter on the collection agencys letterhead that explains the settlement if you make a payment agreement. Hold on to your payment until you receive this letter, and make it clear to the collector that the payment wont be sent until you have the agreement in writing.

5

Work out a payment schedule if you cant get the collection agency to agree to one lump payment you can afford. Collectors are more likely to agree to such an arrangement if you cite specific dates when the payments will be made and the exact amount of those payments. You can bargain for weekly or monthly payments, but consistency will be key. Make sure you dont miss a payment.

6

Insist on a payment schedule even if the collection agency resists giving you one. Your goal is to keep from having a judgment filed against you. If you can show that you are making a consistent effort to pay down the debt, you have a much better chance of preventing a judgment.

7

Turn aside threats from collection agencies that your credit will be ruined if you dont pay when or what they want. Typically, there already are negative marks on a credit report by the time a debt is moved to collection status. Therefore, concentrate on taking care of the debt so it doesnt continue to linger over your financial affairs.