Best Home Decorating Ideas and Garden Landscaping Plans

Tips for negotiating with a debt collection agency

You are here: Home » Home Improvement » Tips for negotiating with a debt collection agency

Chances are that you have heard horror stories about debt collectors. Debt collectors are those people who harass you just to get their hands on everything you have. Well, not quite. People chasing debts in London are just like anyone else. They are honest people trying to do their job. If a collections agency calls you, you better answer the phone. Nothing bad will happen. As a matter of fact, you can reduce the amount of money that you owe. If you know how to negotiate, of course. Negotiation is an art and, therefore, it cannot be taught. Yet, with some tips, you can become a good negotiator. In this article, we will teach you how to strike a deal with debt collectors.

Learn about the debt and make a repayment proposal

If you have debt, you have to learn how much you owe. Collections agencies play by the rules, so do not be afraid to ask questions about your liability. Why go through all your bills when you can save a great deal of time? Once you have information about your debt, figure out how much you can afford to pay. What you should strive to achieve is not to offer more than you can afford, but less.  It will be necessary to review your budget. When you meet with the debt collectors face-to-face, do not provide information about your additional income.

Do not lose your power

As surprising as it may seem, you do have leverage. A collections agency wants your money because they are paid on commission. This means that if they do not recover anything, they will not get paid. Unquestionably, you will be asked to pay the full sum. What you should do is hold firm and clearly state that this is not a possibility.

Request the removal of information from your credit card reports

During negotiations, it is important not to forget to ask the debt collection agency to remove all details from your credit card reports. The debt will be settled and there is no reason why any evidence should remain on your credit card reports. While it is not in the power of the agency to remove any information that was on the reports before prior to the negotiation, the agency has the power to alter the reports.  

Record your agreement

You have explained your repayment plan and the collections agency has nothing to object. The last thing you need to do is to get the agreement recorded. In other words, make sure that you have a written agreement before you pay a cent.