Are there really 5 ways to bargain off my debt from aggressive creditors?
Do you feel overwhelmed by debt? Are you able to pay it all off and reduce your stress? Did you know that when you take your first step and you enter into recovery mode?
If you have never had to bargain with creditors before it can be a bit scary when you first start to negotiate. Nonetheless, it is a skill that you can develop with practice. Also, it may teach you a lesson that you will never want to have to learn again.
Additionally, there are very few people who have not already bargained for something before your are faced with a debt situation. For example, you may have had to bargain with your parents to go to a concert, or out with a friend. You may have also bargained with a teacher to get a better grade or a friend to borrow something important.
Nonetheless, this experience will require the same preparation with a little more diligence and determination to win the request.
Affiliate Marketing Disclaimer: This article contains Amazon affiliate links. Financial Disclaimer: This article contains strategies that I use personally, but should not be taken as a prescribed method of use for you.
Table of Contents
- Learn and Know Your Rights Before You Start Bargaining
- Contact The Credit Department Of Your Creditor
- Determine The Available Hardship Programs That Can Help You
- Learn The Bargaining Process And Your Rights
- Must-Haves For Your Repayment Contract
1. Learn and Know your rights before you start bargain Off Your Debt
The first step to bargain or negotiate debt repayment is to determine how much you actually owe without the extra charges and late fees. Take caution and be mindful and careful of scammers that send out false information with phone numbers connected to the document.
If you are leery about the account information, the amount you owe, or the collections company, get that straight before you go any farther.
You may have racked up a few hundred dollars in late fees. You may want to start your conversation by explaining why your account is behind. You may have to develop a thick skin and ignore some sarcastic remarks from the creditors. Nonetheless, you have rights, the rights state what is and is not legal in debt collections.
When you already know that you are in trouble with your finances and debt, calling the creditor before they call you may work in your favor. No matter what, you will have to stay calm and stay focused.
2. Contact the Credit Department of your Creditor To Start the Bargaining
The second step in bargaining is to call the company. If the debt is from a credit card, make sure that you call the phone number on the back of the credit card. That number should put you in touch with the credit department.
If the account is from some other source, call the phone number on the original paperwork. If the phone number does not go directly into the settlement department of the creditor, simply ask to be connected. Also, you may want to try working with one individual in the credit department.
Working with one person makes it is easier for you because you only have to adjust to the personality of one person rather than a few different people. Also, being armed with knowledge puts you one step ahead in the game.
As you develop your plan of action, review the sample letters from the Consumer Financial Protection Bureau, and investigate information from their website that will help you determine how to bargain off your debt.
3. Determine the Available Hardship Programs that Can Help You
In step third, determine which hardship programs are applicable to your situation. Then contact them for assistance.
Also, if it has been a long time since you started the repayment process, do not let the collectors pressure you into an early payment.
Instead, determine if there is a statute of limitations on the debt in your state.
NOLO provides a report of the statute of limitations for each state. You can contact them on their website.
4. Learn the Bargaining Process and Your Rights
In step four of the bargain take a day or two to review your situation and decide how to best handle the problems. You may want to speak with a family or friend who understands the situation or process. Additionally, understand that you have rights that protect you from aggressive debt collection processes that include:
- Harassment-Free Negotiations: Debt collectors cannot curse, threaten, disclose your information, or shame you as a means of collecting debt.
- Use Threatening Power Actions: A debt collector cannot arrest, deport or take your property.
- Threatening Calls: Debt collectors cannot call you before 8 a.m. or after 9pm, unless you agree to the early or extra late calls.
- Employer Contact or Calls: They cannot force you to accept calls on your job.
- Diverse Negotiations: Also understand that your negotiation strategies will vary depending on the type of debt you have. For example student loan debt bargaining will not be the same as credit card or loan debt bargaining.
Nonetheless, you must understand the collectors can do the following to collect money owed to them. They can call or contact people in your life or listed as a personal reference to get your home address, phone number, or email address.
Additionally, work with the creditors so that you can avoid paying any additional fees associated with debt collection agencies. Also, let the creditor know what you are able to pay and pay what you agree to paying. For example, if you agree to paying $10. per month, the creditors cannot say that you are not paying and turn your case into debt collections.
5. Must Haves For Your Repayment Contract
The fifth step of the bargain involves actually developing a repayment contract. The company representative should already have your personal information. Therefore do not give them your SSN, or other pertinent information.
During the development phase, make sure you ask a lot of questions about the repayment process. Also, research the difference between a debt management department within a lending company, and a credit card company. Remember that a debt settlement company is in business to make money, therefore there will be a fee to settle the debt problem.
During the contract, development phase make sure that you take notes so that you can double-check the contract at the end of the meeting.
You should discuss and write into your agreement the following information:
- repayment terms
- credit line usage
- credit card score reporting
- taxable income associated with forgiven debt
- the choice to file bankruptcy
Conclusion
We began by stating some of the different feelings people may have if they have never had to bargain with debt collectors. Next, we stated the importance of learning and knowing your rights as a creditor. Then we suggested that you contact the credit department of your creditors before they contact you about the debt.
Also, you may want to determine if there is any help available through a hardship department. Additionally, you should make sure that you fully understand the bargaining process and your rights as a debtor just incase things do no go as you planned. Finally, once you have all of the bargaining completed, get the agreement in writing.
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