Negotiating with Debt Collectors: 5 Reasons Why You Shouldn’t Give In

Negotiating with a debt collector takes a cool frame of mind. Giving in to the demands of a debt collector’s harassment may seem the only way to get him or her off your back, but in most cases, you cannot make a sound judgment while you’re in the middle of the intense feelings that a debt collector has caused. Understand that debt collectors are experienced in getting the most from their debtors, and they are not averse to causing you distress. In fact, causing distress is their most successful tactic.

If the annoyance of a debt collector is making you feel like you should just pick up the phone and give in, stop and take a deep breath. Here’s why it’s important not to give in immediately, especially when you know you can’t meet their demands:

1. 1You need to understand your rights. Before you even speak to a debt collector, you should know your rights under the Fair Debt Collection Practices Act. A debt collector may very well try to manipulate you by using harassment or abuse, misrepresenting that they are with the courts, or threaten to take your property if you don’t agree to their terms. Knowing what is considered illegal behavior by a debt collector can stop them in their tracks if they use any of those tactics on you. Learn more here.
2. 2You need to respect your own budget. Before you pick up the phone and get talked into a payment, go through your budget carefully and know what your family budget can tolerate. If you’ve gotten into financial trouble, or have recently lost your job, then make sure you are covered for the most important priorities such as your home, food, car, and utilities before you commit to a payment plan you may not be able to fulfill.
3. 3You need to stick to your guns. Pick the terms that you know you can tolerate and that will still leave you with a cushion in case something changes for the worse. Once you know that number, choose a lower number to use as an offer to start negotiating. Realize that the debt collector will try to get the entire amount all at once, but you can negotiate a schedule to be paid over a certain amount of time, or agree to a lump sum of less than what you actually owe.
4. 4You can call in an expert if you can’t negotiate on your own. If the debt collector refuses to settle, if you don’t feel comfortable negotiating on your own, if you have tried and the debt collector doesn’t want to budge, or if the amount is substantial, then contact an attorney who specializes in debt collection law to negotiate on your behalf.
5. 5You need to have a cool head. When you’re caught off guard, you’re not sure of what to say, what your rights are, and may promise an amount that sounds fine at first, but on further thought ends up being something you can’t handle financially. If you’re calm, have your papers in front of you, and have a pen to take down contact information and notes, you’re more apt to be more business-like in the negotiation.

Remember that debt collectors have a right to collect their debts, but also realize that you’re not alone. Debt collectors are more willing than ever to negotiate. However, as fewer and fewer people are able to pay their bills, strong-arm debt collection tactics are becoming more common. So instead of just trying to get them off your back, remain cool, understand your rights, and don’t give in to their initial demands. If the debt collector refuses to budge, the attorneys at Lemberg & Associates are ready to help you with your negotiation. If they cross the line into harassing or abusive behavior, we’ll protect you in the future and get the compensation you deserve because they’ve broken the law.