Negotiate With the Collector, Don’t Ignore Them
When the debt collector calls, you know that you are likely to have a bad day. Perhaps your instinct is to ignore the call, but don’t. Instead, use this as an opportunity to start negotiations.
Most of us are brought up to believe that when a company gives you a dollar amount that you have to pay for any reason, that figure is non-negotiable. This is why the debt collector calls are so terrible. You expect to be told that you owe some amount of money that you cannot pay (and you probably already know), so you avoid calling to put it off. This is clearly bad for your reputation, but it is also a missed opportunity. As explained in the personal finance blog The Financial Diet, you can often negotiate with debt collectors to reduce the amount of your debt, or at least create a more manageable payment plan:
Here’s a secret I’ve learned from my (unfortunately) extensive experience with debt: something is always better than nothing. If you can only pay a certain amount, stick (but kindly) with the person on the phone and explain your situation. Say what you want to pay and give an amount you can actually take on (because often their automatic estimates are far from correct) and don’t hesitate until they collect it. Almost without exception, I did it for my debts and I always paid as soon as we met the right amount. Sometimes it takes a few phone calls and a little time, but once it is clear to the organization that you are not going to do more, they will take what they can get. They just want that money and will end up working with you.
This may be an unpleasant conversation, but in the end it’s better for you to settle the bill than to ignore the debt collector. Even if you cannot pay, answer the call and discuss with the collector how much you can pay. You may not be able to agree on a number right away, and it may take several calls to reach an agreement, but the fact that you are ready to discuss will count in your favor.
7 Things I Learned About Loan By Busting My Own | Financial Diet Via Rockstar Finance