3 Tips for Dealing with Debt Collectors

When financial trouble makes it difficult to manage debts, debt collectors may begin calling. Handling this situation wisely will help prevent it from getting more severe.

1) Investigate 

The first action to take after receiving a call or a written notice is to investigate the claim. One should request a credit report to ensure that the debt is accurate.

2) Resolve Inaccuracies

If the debt seems to be incorrect or is a result of identity theft, one should send a letter to the debt collecting agency explaining the inaccuracy and stating that the debt will not be paid. This letter should be sent via certified mail within 30 days of receipt of the initial notice. Letters and documented proof of the error should also be sent to credit bureaus, requesting removal of the debt from current reports.

3) Negotiate Wisely

If a debt is accurate, ignoring the notice is never wise. Instead, one should respond quickly to the notice. Negotiating repayment terms is often possible, especially when responding in a timely fashion. After negotiating a repayment schedule, get the schedule in writing and follow through.

Although debt collection agencies can use intimidating techniques, those in debt should strive to remain composed and respond cooperatively.