Agree on Monthly Payments to Deal With a Debt Collector
When the debt collector calls, it can ruin your day. You probably know how much you owe, and it’s scary to think about paying all at once. Instead of ignoring this call, try negotiating a monthly payment.
As the personal finance blog Three Thrifty Guys points out, most debt collectors ( assuming they’re legitimate ) are only interested in settling the account. It doesn’t really matter to them whether you pay all at once or gradually. And, in fact, most people understand that you can not pay all at once. However, you can negotiate some surprisingly simple monthly payments. The site explains it from the perspective of a former debt collector:
Deal with a collector to stop fees and clear your credit report. However, most paying debtors charge monthly payments with expiration checks. As collectors, we have adhered to strict rules and discipline in this process to avoid misappropriation of these funds. I set a payment order of only $ 10 a month, and we never called these debtors unless the check was returned. Some debtors asked us to call them on a certain day of each month and they made the payment. If you don’t offer payment, you can continue to receive phone calls.
Not all debt collectors state in advance that monthly payments are possible. Whether you said it bluntly or not, you can always ask if there are ways to pay off your debt over time. This will usually be an option, and in the long run it will be much better for your loan if it is paid off – even at $ 10 at a time – than if you ignore the call.
How to Deal with a Debt Collector (Written by a Former Debt Collector) | Three frugal guys