Can I Settle With Debt Collection Agencies?

Phone calls and letters from debt collection agencies can have a tendency to ruin your day. There are ways to handle debt collection issues that will benefit you and get your debt paid off as well.
The first thing that you need to remember about debt collectors is that it is their job to get you to pay your obligations. When you get a phone call from a collection company, it is not a personal attack on you or your family. It is a business call to settle an account. The other thing to remember about debt collection agencies is that they probably purchased your debt from the original creditor. That means that the collection agency only paid a fraction of what the debt is worth, which leaves you room for negotiation.

Face The Debt Head On

Just about everyone has caller ID on their telephones now, and they can see calls as they come in. Most people will ignore the call if it is from a collection agency. This is the absolute worst approach you can take.

While a debt collector is all business on the phone, it is still important to try and establish a rapport with the collector. If you act professional and responsible on the phone, then the collector will return in kind. That kind of approach can save you a lot of money on your debt.

Validate The Debt

When you get a call from a collection agency regarding a debt, the agency has five days to send you written confirmation of the debt. Tell the debt collector that you will be more than happy to deal with the problem, but you want to get the written confirmation of the debt first.

By federal law, the debt collection company must send you the written notification in five days. When you receive the notification, you have 30 days to mail a validation letter.

A validation letter is a request you send that essentially forces the collection agency to prove that you owe the money and that the agency is legally allowed to collect on it. To validate a debt, the collection agency must send you a copy of the original debt agreement, a payment history on the debt and proof that the agency can collect.

When you mail your validation letter, send it certified mail and request a signature upon receipt. Once the agency receives the letter, it must get your information back to you within 30 days. If it does not, then the collection process with that agency is stopped.

If the debt checks out, then you need to engage the collection agency immediately to work on an agreement to pay the debt off.

Proceed With Caution

One of the tactics that people use when dealing with collection agencies is to stall and hope the debt goes away. If the debt is large enough, the collection agency will start legal action and you will be responsible for the agency’s legal costs.

When you get into the process of settling a debt with a collection agency, proceed with extreme caution. The collection agency will use whatever means it needs to collect that debt.

Hire A Professional

The best approach is to take your validation paperwork to a debt settlement professional and let the expert settle the debt for you. It makes much more sense to allow a seasoned expert to speak on your behalf as opposed to you doing it yourself.

The debt settlement expert will know exactly what to say to the collection agency to get your debt lowered. In the case of collection accounts, a professional debt negotiator can get your settlement down to as much as 50 percent off of the original balance.

Make Good On The Agreement

Most people get used to the grace periods that many creditors have when it comes to paying monthly payments. Collection agencies do not have grace periods. If your payment is due to the collection agency on the first of the month, then you need to make that payment by the first of the month.

Remember that the collection agency does have a wide range of options to collect that debt. Settling the debt and allowing monthly payments is an option that benefits you and the agency. In order to take advantage of that option, you must keep up your end of the agreement and make your payments as scheduled.

We are experts in settling debts with collection agencies. We know how to present your case and get your debt reduced. Let us put our years of experience to work for you and get your collection debt down to a level that fits your budget.

Fill out the online form and let our financial experts get started on your collection account case and get you the kinds of results that you need.