6 Tips to Deal with Debt Collectors

Thinking of getting a cash loan to get rid of debt collection calls? There’s a better way. When you’re having financial problems, debt collectors can quickly become a daily annoyance. But if you follow these tips on how to deal with them, your life will be a bit easier.

Don’t ignore them

Ignoring debt collection calls is the worse thing you can do. If a collection agency is calling you, it’s because you have a debt problem.

Instead of putting your head in the sand and acting like nothing’s wrong, you should take a good hard look at your finances to understand how and why this happened.

Ask for confirmation

As soon as the first call comes through, you should confirm that the debt is yours and that it’s a legitimate one. (In other words, make sure this didn’t happen because of identity theft.)

Depending on your state or country, the law should allow you a certain amount of time to request a debt verification with the collection agency. It’s the best first step, whether the debt is yours or not.

Know your rights

Even though debt collection isn’t like getting arrested, it can have a significant impact on your life and health. Visit the website of your country’s trade commission to learn about your rights as a debtor.

Most Western countries have rules and laws about harassing phone calls, threats and abuse. If the debt collection agency is using these tactics, contact the trade commission or follow the next tip.

Get a lawyer

If you are stuck with an abusive collector or have received a notice of a lawsuit, you should get a lawyer who specializes in consumer law.

A lot of lawsuits can be avoided with the help of a good lawyer because debt collection agencies count on people to just give in and pay whatever they are requesting. A lawyer can help you sort out what you should and shouldn’t do.

Don’t give them access to your accounts

Some agencies may insist on getting your banking information so they can withdraw money directly from your account. You should never reveal your banking information to collection agencies.

Instead, offer to pay through money orders or a payment service that keeps a record of the transaction. Do not pay by personal check.

Keep copies of everything

As soon as you start receiving written documents, safeguard the originals and make copies, just in case. Keep photocopies of any payment that you make as well. Any mail you send should be certified and signed by the receiver.

If the collection agent uses abusive language on the phone, tell him or her you’re recording the conversation (and actually follow through with it). Under the threat of being denounced, most collectors will stop harassing you.

Debt collection is an unfortunate part of many families’ financial life, but you can minimize its impact by following these simple tips and keeping yourself informed. If you show good will and do not put up with abuse, you should get out of it fairly quickly.

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