I know so many people that are constantly in debt. While I know it’s common for people to go into debt because of overspending on frivolous things like clothes and accessories, most of the people I know are in debt because of their education.
They all go to really expensive colleges and they are taking out huge student loans, but they’re still left with a bill to pay. I’m not in debt because my school wasn’t too expensive, but I feel bad for my friends that are struggling to keep up with college payments. They even tell me that they’ve spoken to a debt collector because of their overdue payments.
When you’re speaking to a debt collector on the phone, there are certain things you should keep in mind. You don’t want to make the mistake of doing something that will make dealing with the debt collector even harder than it has to be.
There are a lot of terrible debt collection agencies out there that will harass people with constant phone calls and try to intimidate people. But there are also some agencies that do their job properly, so follow these tips to make your situation as painless as possible.
The first thing you should do when you get a call from a debt collector is verify your debt. You want to make sure that the debt they’re trying to collect is really one that you’ve incurred. You also want to make sure the amount is correct. I’m not saying that they’re trying to take advantage of you, but you never know, they could have made a mistake, and you don’t want to end up paying more than you actually owe.
Now if you really don’t think that the debt is yours or you think the amount is too high, you can always write a letter explaining this and you should get a response verifying the debt in writing.
Finally, when you reach an agreement with the collector, be sure to get it in writing. Also, never let them take the money directly out of your bank account.Something else to keep in mind when you’re dealing with debt collectors is that you can negotiate.
Another tip for dealing with debt collectors is to negotiate. Debt collectors are people too, and they could be swayed to allow you to pay a lower balance. You have to start by explaining that you have a lot of other expenses and you can’t afford the balance they are asking for. You have to make sure they know that you want to pay off this debt and you’re doing everything you can to make good.
There’s still more to do after you finally settle your debt with the debt collector because now you have the future to think about. After you pay off this debt, you want to make sure you get your credit back on track so you can rid yourself of these financial hardships.
Some of the things you should do are pay your bills on time, keep your utilization ratio down, and not shop around for credit – at least until you’ve gotten credit counseling and they have deemed that you’re responsible enough and in a position that you can handle it now.
I’ve given you a few tips for handling debt collectors and advice for managing your finances in the future, and if you follow this you should be able to get yourself back on track financially.