subject: Negotiating Debt Settlements: Avoid Debt Collector Harassment [print this page] Knowing that you have incurred debt can be troublesome. Avoiding debt collectors can be a hassle. With the economic crisis and businesses failing and having to incur heavy losses, it is no wonder that a staggering 24.5% of the population has borrowed money and not paid it back. But even if you aren't able to make full payment, you are in a powerful position to negotiate a debt settlement. Negotiating a debt settlement can be one of the most difficult things to do but it may avoid debt collector harassment and adverse credit reports.
The Federal Trade Commission is the nationwide consumer agency for consumer protection. Practices and processes are regulated by the Fair Debt Collection Practices Act. This means that, even if you are unable to repay your debt, creditors and collection agencies cannot behave like thugs to achieve payment of monies owed; they can only use legal and fair means.
If you find yourself in debt there are measures you can take on your own initiative, including trying to negotiate a settlement.
The first step to negotiating a debt settlement is to begin talks with the debt collector or creditor. A debt collector is bound by rules that state they are not permitted to constantly bother you. They can only contact you after 8 a.m. and before 9 p.m. unless and until you agree to accept calls outside these times. Similarly, they are not permitted to call you at work if they are advised not to do so in writing. Even within these confines of time constraints it is still in your own interest to talk with the debt collector. It will certainly be easier to negotiate a settlement if you have an ongoing dialogue and the debt collector gets to understand you and your circumstances.
It's important to get support during the debt negotiation process. Ask a family member or friend to be by your side. While it's tempting to react and get upset, it's important that you approach debt settlement with a clear head.
Do not accept an agreement that calls for automatic withdrawals from your bank account. In fact, many people advocate not even writing checks, so that the debt collector won't have access to your bank account. There are numerous stories of debt collectors who withdraw unauthorized payments or continue to make withdrawals after the entire debt has been paid. The best course of action is to pay via money order.
Once you have made commitments to solve the issue at hand, get it in writing. Debt collectors come and go, and unless you have the agreement in writing, you have no way to prove that an agreement was reached. When you have the written agreement, make sure to adhere to it. If you don't, it could send you back into collection. That's why it's important not to agree to a debt settlement that you can't afford.
