Google

Tips To Take Control Of Debt Collection


Yes, debt collection tips can help. You may think you have no power when the debt collector comes calling, but think again! Creditors don't like losing out on the ability to collect money owed them. And most creditors will take steps to settle an unsecured debt to collect some money as opposed to no money.

Tip 1 - Keep Communications Open

Once you have your Money Management Plan on paper, you will be able to professionally respond to requests for payment from creditors and debt collection agencies. They may ask you, or you can offer, to send them a copy of your Money Management Plan. This opens the communication between you, and they may even be able to offer suggestions to improve your plan. Keep in mind, however, they will offer suggestions based upon their best interests, you need to negotiate based upon what's best for you!

Tip 2 - Know Your Credit Report

Obtaining a copy of your online credit report, and learning how to use it in debt management, can help you when it comes to negotiating with your creditors.

Tip 3 - Negotiating With Creditors

You can request a monthly payment reduction, either a temporary extension, or permanent reduction. Keep in mind, this method can involve adding years to your payment plan, as well as some type of "deferral fee" charged by the creditor.

Ask if the interest rate, principal balance, or monthly payments can be reduced to permit you to continue to pay the debt on time. Ask for principal reduction first, then interest reduction. If these are not agreeable, then request monthly payment reduction.

If you ask for all 3, the creditor will take the one best for them first, which is monthly payment reduction, and you end up paying too much interest. Lower payments, without the other two will only mean you are adding years and years to the payoff time. No bargain there.

If you have access to some money to make a large payment on a debt, you may want to consider debt settlement on some or all of your debts.

On secured debts, you risk losing the asset if you don't keep your payments current. This includes your home, car, etc. These are priority debts to you, as well as priority debts if you decide to file bankruptcy.

Tip 4 - Do What's Best For You

Whether you are speaking with creditors directly, or to debt collection agency representatives, remember, be honest, and don't commit to payments you cannot make.

Tip 5 - Know Your Rights

The Fair Debt Collection Practice Act sets out exactly what creditors can, and cannot do, when talking with your about your debt. Don't be afraid, be informed!

http://www.debtsteps.com/fair-debt-collection-practice-act.html

Remember, being courteous and honest with creditors and debt collectors will go a long way in helping you to cope. No lies to remember, no self-induced stress, just honest communication to achieve your goals.

Debs is the editor of http://www.DebtSteps.com where you can get the answers you need about debt relief, consolidation, credit counseling and more. Subscribe to the free newsletter and discussion list at http://www.debtsteps.com/debt-help.html and get free money management worksheets in pdf and spreadsheet format. Get more information to get out of debt:

Compare the pros and cons of debt consolidation loans, service companies, and credit counseling. http://www.debtsteps.com/consolidate-debts.html

Understanding how your credit score can affect your debt relief choice http://www.debtsteps.com/credit-score.html

Free Money Management Tutorials http://www.debtsteps.com/money-management.html

MORE RESOURCES:

RELATED ARTICLES

Solutions to Single Mothers in Debt
As a single mother, lets admit it, times get tough. You are fortunate enough to have your children that mean the world to you, but it doesn't come cheap.
Dont Drown Your Debts, Manage Them!
Are you among the millions of people who have found themselves unable to make even the minimum payments on credit cards and other unsecured debts? If so, there is relief in sight. It is no longer necessary to keep paying constantly but never really make any progress towards reducing or eliminating your debts.
Bankruptcy, Is It A Way Out
Negotiations with creditors have failed. Repossession is imminent and foreclosure proceedings have begun.
Secrets to Why Debt Reduction is So Vital for Your Financial Health
Living with debt is never a good idea if you want to make long-term financial plans. Every cent you use to service debt is money that could have been invested in your future.
How to Choose a Debt Settlement Company
As consumer debt continues to spiral out of control, debt relief is fast becoming a major concern for many American's. In 1999, American's made $1.
Assess Your Financial Attitude and Eliminate Your Debt Forever
Want to know if your attitude towards your finances is helping you or damaging your future? Take this Quiz and find out..
Debt Recovery Can be Easy
OK, so you are up to your head in debt. You are stressed out, it is now affecting the way you function and absorbing most of your daily thoughts.
Debt Collectors; And what you can do to Get Them Out of your Life
FTC opinion letter on validation Section 809(a) of the FDCPA, 15 U.S.
Bankruptcy - Your Fresh Start
Most American consumers are living too close to the edge. They are carrying too much credit card and mortgage debt and have too little in the way of savings.
Use A Debt Checklist To Examine Where You Are
A Debt Checklist allows you to look at items and areas of your financial life. You need to examine these to gauge how you stand.
The Five Most Popular Questions About Bankruptcy
WILL MY CREDITORS STOP HARASSING ME?Yes, they will! By law, all actions against a debtor must cease once bankruptcy documents are filed. Creditors cannot initiate or continue any lawsuits, wage garnishees, or even telephone calls demanding payments.
Start Small and Your Wealth Will Get Bigger
We've all heard the phrase, "You have to start somewhere." Nothing could be truer of creating wealth and prosperity in your life.
British Families and Debt
There is current concern from the Bank of England that British families are getting deeper into debt, however, it has been said that lenders are putting themselves at risk because people are now more willing to make themselves bankrupt.Despite people already having significant amounts of debt, credit card companies are still prepared to lend these people money.
Senate Passes New Bankruptcy Law
The United States Senate passed a law on March 10, 2005 that changes the bankruptcy laws in America. It is expected that the House of Representatives will look to pass the same bill in April, which will send it to President Bush for his signature.
Eliminating Credit Card Debt
The overwhelming task of eliminating your debts can often seem like an uphill battle. Without the knowledge and expertise of a professional on your side, unfortunately, the odds are not in your favor.
How to Deal with Bill Collectors
So you've screwed up. You're drowning in debt.
5 Methods Toward Reducing Your Debt
Decreasing your debt is paramount to having a good credit rating as well as giving you peace of mind. You want to get out of debt, but not all debt reduction options may be beneficial.
Credit Card Debt & the Unfairness of the Universal Default Clause
Let's look at a real world example: A woman purchased a new $4,000 large screen TV a few months ago based on the knowledge her monthly payment was going to be $175, and based on the 9% interest rate charged by her credit card company. For five months straight she made all her payments on time, but in the fifth month she was late paying her mortgage bill, for reasons unknown.
How To Avoid Medical Collections
With medical collections costing doctors millions upon millions of dollars in unpaid bills and collection fees, many people have just one question: Who are these people who are trying to stiff the doctors who delivered them from great physical pain (or the flu, hypochondria, not-so-white-teeth, or a nose that didn't look enough like Brad Pitt's)?Well, I'm here to tell you who these people are, or at least some of them.They're me.
Bankruptcy: What the New Law Means to You
On April 20 of this year, President Bush signed a bankruptcy reform law. When this law goes into effect in October of this year, it will be much more difficult for Americans to use Chapter 7 bankruptcy to get a fresh start on their financial lives.