Debt is a major problem for many American households. In fact, those households owe a collective total of $413.7 billion to credit card companies alone.

If you’re dealing with outstanding debts and just keep putting payments off, you’re not alone. Unfortunately, ignoring those minimum payments can backfire quickly and, before you know it, debt collectors will start calling you.

Negotiating with debt collectors to reach a fair repayment settlement isn’t as simple as you might think. Here are a few proven tips to help you get through the process unscathed.

Know What Your Rights Are

Believe it or not, you have rights even if you’re falling behind on your debts and need to negotiate with a debt collector. For example, debt collectors are always expected to treat you with respect. If they’re threatening you or calling you incessantly, you need to take action as soon as you can.

These behaviors are illegal and letting them slide only puts you in a tougher position when you start negotiating.

Get the names of each collector you speak to and make a note of the incidents as they happen. Keep a log of the date and time of each phone call you receive whether you answer it or not. If things become too intense, you can always speak with an attorney and get their help negotiating with collectors.

Standing up for yourself is the best way to get debt collectors to negotiate a more affordable settlement.

Beware Debt Collection Scams

Not all debt collectors are legitimate. Some are scam artists looking for a quick way to make money.

These so-called collectors often harass people and try to trick them into paying debts they don’t really have. Pay attention to the things they’re saying.

If they’re threatening to get you arrested or file a lawsuit against you, don’t give in. Ask for their information and let them know that you’ll contact them after you verify that you have outstanding debt.

Contact your creditors and see if they’ve sent anything to collections. Do this for every personal loan, credit card, or other debt that you have. Double-check your accounts to make sure all your payments are still getting processed correctly.

Don’t worry—if any of your creditors sent something to collections, they’ll let you know immediately. You won’t have to second guess yourself.

If the collector is a scam artist, contact the police and give them as much information as you can.

Be Consistent When Speaking With Debt Collectors

It’s normal to try to come up with excuses when someone is demanding money quickly. There’s nothing wrong with coming up with those excuses. You just need to be as consistent as you can every time you speak with a creditor or debt collector.

Make sure you’re offering the same explanations no matter who you’re speaking to.

The more consistent you are, the more honest you’ll appear, and the less those debt collectors will be able to use your words against you. Write down what you’re telling collectors and stick to it at all times. Remember, debt collectors won’t respond positively to sob stories.

Keep things concise and simple whenever you can.

Though getting those collection calls is stressful, it’s also a good idea to try to be as calm as you can on the phone. Even when collectors are threatening you or getting hostile on the other line, keep your tone calm.

If most of your calls are openly hostile and you’re tired of getting treated with disrespect, ask the collector if you can record the call before they start speaking. If they say no, inform them that you’ll only speak to a collector if you’re able to record the conversation.

Always Ask Questions

One of the reasons that debt collectors are so successful in getting people to settle debts is because they’re intimidating. Many collectors make open threats against you to encourage you to pay up.

Don’t give in without asking detailed questions.

If a collector tells you they’ll file a lawsuit against you, ask them when you can expect written notice of that lawsuit. If you haven’t received a notice of your debt in writing, ask when the collector will be sending you the notice in the mail. Any collectors that refuse to provide you with that information are not legitimate.

Don’t Be Afraid to Get Help

The most important thing to remember when dealing with debt and debt collectors is that you don’t have to go through it alone. You can and should get help.

By hiring an experienced attorney to represent your case with debt collectors, you’ll increase the likelihood of getting a fair settlement offer. Remember, it’s in debt collectors’ best interests to bully you into paying as much as they can get you to.

Your attorney will be able to make sure the settlement agreement works with your budget. If they can’t get you a fair settlement amount, they can make recommendations on the next steps to help you get out of debt legally.

Always Keep an Eye on Your Bottom Line

Whether you accept help or not, you should only accept a settlement offer if you’re able to afford it. If the payments are too high or would make it impossible for you and your family to get by each month, keep fighting it.

Remember, there’s nothing wrong with filing for bankruptcy if you truly can’t afford to make payments on your outstanding debts.

Negotiating With Debt Collectors Is Possible

When you’re dealing with tons of outstanding debt, it’s easy to feel overwhelmed. Once the collection calls start coming, the process only becomes more stressful.

Keep these tips in mind when negotiating with debt collectors and you’ll be on the right track from the beginning. Just remember that it’s okay to ask for help if you’re not comfortable handling the process on your own.

The sooner you can get help, the sooner you’ll be able to reach a fair settlement and get out of debt once and for all.

Looking for more tips to help you keep your debts from getting the best of you? Check out our latest posts.

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