Tuesday, July 22, 2008
Negotiating with Creditors
Creditors..you know those people calling you at work and home numerous times a day. The ones that sometimes threaten with legal action or are very rude. They tell you things to scare you into paying. Which, by the way is against the law. We as consumers are protected under the Fair Debt Collections act against illegal harassment and threats from creditors. You can contact the FTC if you feel your rights have been violated. After your original bills have gone into default, they are sold to a collection agency. Their goal is to retrieve their money back, so can we really blame them? After all they are doing their job. I know they're annoying and sometimes you want to say "Is your credit perfect lady?" But if you hadn't not paid back the money they loaned you, they wouldn't be calling. Once you've decided you're going to clean up your credit, you may have to call and work out arrangements with the collection agencies or creditors. What I did was call and ask what amount could I settle for?They will offer you the option to make several payments or pay the full amount. I always paid the full amount on my bills. So for example, if you have a bill whose original amount was $500, they may settle as low as $250. Out of all the bills I owed, I was able to settle all with the exception of one company who wasn't budging on the amount. I paid that one last. When calling, be pleasant and non threatening. They want to know that you're really wanting to settle this debt. Once you have paid, ALWAYS request a paid receipt. Otherwise, how can you prove you actually settled the amount? There isn't really a scrip to follow when negotiating with creditors. If you're making the effort to pay, they're normally good with working out something with you. Don't be afraid, what do you have to lose? Nothing, but you have a whole lot to gain.