Tuesday, 16 February 2016

8 Useful Debt Collection Tips

It can be tricky and somehow complicated to deal with debt collectors. In most cases, people make mistakes that end up messing with their credit life. When you deal with the debt collector, you should keep in mind that you have several rights. To help you make the debt collection swift and easy, here are some tips to help you.

1. Put everything in writing
Documentation is the first thing you will need to ensure. The debt collector must give you information about the amount of money that you owe. This should be sent in a written document to help you have a clear picture of what you owe them. Other than the money that you owe them, the document should also contain the creditor’s name, and the action to take if you are not in debt. The action you decide to take should be related to the debt collection act. For that, before you can start negotiating with the debt collector, you will need to have your debt and every other detail in writing.

Even if you believe you don’t owe money to the creditor, the dispute should be presented in writing. Ensure that you send the document with your dispute within 30 days of receiving the document. Always keep the documents safely, to allow for reliability when you need them.

2. Do not assume/ignore anything
Many debtors tend to assume a lot of things, which is one of the mistakes made. As you are dealing with the debt collector, do not always assume that they will come to collect the debt when the time comes. Also, when you receive a call from the debt collector, don’t always assume that they need you to pay the debt. The debt collector might be calling or contacting you to give you tips on how to handle your debts wisely. In case, you receive a call from the debt collector, or they attempt to contact you, listen to what they have to say. Also, confirm the date of paying back the date, you can do this as frequently as you can ensure that you pay on time.

3. Keep the records or messages and phone calls
You should also ensure that you have a good record of the messages and the phone calls that you receive from the debt collector. Also, you can note the time and date of each call made by the collector. Include the name of the debt collection agency, the amount that you owe, and a summary of each conversation. This record can be useful, especially if the debt collector has broken any rule and gone against the law. If there is any voicemail from the collector, keep it as well.

4. Show up in court when you are called
Some debtors tend to fail to clear their debts. As a result, they are sued by the creditor. In case, a creditor sues you in court, and you are scheduled to report on a certain date and time, ensure you do so. Skipping a court date can land you in bigger problems, and it can also cost you even more money. Some court verdicts will add an extra fee to the debt that you were to pay. When you fail to report to the court, you will be charged with two cases, so ensure that you do your calculations wisely.

5. Never pay a collector without validation papers
Unless the debt collector has proper validation papers, you should not pay them. Some debtors are not registered, and they might con you when you pay them the money. If a debtor claims to represent a certain company, they should give you all the supporting documents. The debtor must be certified to collect the debts, and they must have the proper documents to support that.

6. Be precise and confident
As the debt collector makes the call, you must be ready to explain clearly, and make them believe that you can pay the money. Ensure that you keep the conversation brief, and speak with confidence that you can pay back the debt. The shorter the conversation is, the more reliable and appropriate it becomes. Dwelling on extra long conversations will not help. You can save the long stories for your friends, but speak with the debt collector with professionalism and be precise enough.

7. Negotiate as much as you can
Many people tend to be afraid to negotiate with the debt collector. On the contrary, financial experts advise that you should never be afraid to negotiate with the debtor. With the tough economy, the debt collectors are looking for ways that you can complete your payment. A good debt collector should always be willing to listen, and they can allow you to make a partial payment. Be ready to negotiate with the debt collector and settle on a deal to pay less money, rather than the entire amount. If they need you to pay the whole amount, you can suggest that you want to pay about 30 or even 50%. This can help you establish your financial status and avoid running out of money.

8. Choose the right debt collector
The best way to ensure that the entire debt collection process is swift and easy is to choose the right debt collector. The debt collector shouldn’t only be there to collect the money that you owe. Rather, they should also act as your financial advisor. Choose a debt collector that has a good experience in the field. The debt collector should also give you an easy time as you plan to make your payment. As you choose the debt collector, ensure that you choose one that is kind and polite, especially when they make a call. They should take you slowly and professionally through the process of paying the debt.

Your debt payment should be as easy and comfortable as you borrow the money. With the right debt collector, you will be sure of paying your debt easily and without any stressful moments. Ensure that you understand the statutes and any rules of debt collection before you deal with any debt collector. This will help you to avoid many problems during the collection.