Are debt collection agencies bugging you with constant phone calls? Even though you might feel embarrassed to be harassed by credit collectors, you should know that this is a pretty common scenario. You should learn how to deal with debt collectors so you can get them off of your daily routine. In addition, it is important to know about the state of your debt so you do not end up being forced to pay for debts you do not owe.
What should you do when collection agencies are constantly bugging you? Here are five easy steps to follow:
Step 1: Understand Your Rights
As mentioned above, you should know and uphold your rights when dealing with debt collectors. The Fair Debt Collection Practices Act stipulates your right and aims to protect consumers from financial institutions and third party collecting agencies. There are limitations placed on the frequency with which communication should be placed before you and the collecting agency. For instance, they are not allowed to contact you between the time of 8 PM to 9 AM (both in written and oral communication form). You can even make a written request to inhibit them from contacting you, especially if you feel that the debt information is incorrect or outdated.
Step 2: Analyze Your Payment Ability
If, in case, the debt collecting agency is right in the information presented, you should focus on how you can get the debt paid off. You can start to negotiate with them at this point. If you cannot afford a lump sum payment, try to negotiate a monthly payment term with your creditor. You need to analyze your financial situation first before you can propose a monthly payment term. You want to make sure that you can afford the payment and stick to it or you will be in more trouble down the road. Check out https://www.debtmediators.com.au/debt-articles/how-to-deal-with-debt-collectors/.
Step 3: Track Your Debts
If the debt problem is serious enough for your creditors to contact a third party collector, you know it is time to change something. Track your debts and their corresponding interest rates. Hence, you will not be surprised to see how much your debt had grown. This will also put you in a good position to dispute any incorrect information placed on your account if any.
Step 4: Negotiate
This is easier said than done; in some cases, you might need to work with a debt mediator. If you want to know how to deal with debt collectors, you should practice the art of negotiation. Credit or financial institutions would rather negotiate with you than to have you block out any form of communication at all. Negotiating with them exhibits a sincere desire to settle the debt.
Step 5: Talk to a Debt Mediator
As mentioned above, you need professional guidance if you want to know how to deal with debt collectors. They can represent you in terms of negotiating and approaching a deal with your creditors.
Debt Mediators protect you from debt collectors. If you want to avoid the hassle and pressure of dealing directly with creditors and collectors, it is time to consider working with a mediator. From mediation to negotiation, it is a huge load off your back. Visit https://www.debtmediators.com.au/ to learn more about how mediators work.