How To Negotiate With A Debt Collection When You Got No Budget For Repayment

In most cases, creditors who are pursuing debtors will make them feel like they got the upper hand when negotiation starts. They will try every trick in book to collect from debtors including threatening phone calls, harassing letters and even phoning you from where you work. If you can settle dispute, they will stop all the annoying phone calls and letters. But this is easier said than done if you don’t have the budget to repay everything. If you don’t have the money, is there are way to resolve the debt and quite possibly avoid a credit card lawsuit. In this article, we will discuss ways in which you can settle your debt, avoid a credit card lawsuit, all without having the budget to pay off debts:

Don’t let the debt collector know about not having the money to repay the debt. What many debtors don’t know is that they are not obliged to reveal their financial status to the debt collectors. Also, you want the debt collector to be under the impression that you can pay the debt so they will make things easier for you, in terms of resolving the debt.

Offer an amount 50% to 75% lower than the original debt amount. Debt collectors and creditors alike would rather collect a small sum rather than not getting any money at all. You might not have the cash to pay the debt right now but a massive discount on your debt could make it easier to repay the debt in the future.

Offer an installment payment plan. Shooting for a monthly payment plan will give you leeway to save up and pay up. In addition to all that, you don’t need to pay a lump sum, which is unrealistic if you barely have enough cash to pay daily expenses. If you show the creditor that you are making efforts to pay the debt, they might go easy on you and grant your request.

Dealing with the debt in person. In most times, talking to a creditor or debt collector in person should be discouraged but desperate times require desperate measures. A few facts to remember when you do speak with your creditor or debt collector, note the name of the person you are talking to, keep a good record of the conversation and put everything in writing. Finally, never let the other person know you do not have money to repay the debt!

Be assertive yet polite. Give your creditor or debt collector the impression that you are familiar with the Fair Credit Reporting Act so they do not try to intimidate you using scare tactics. When negotiating with a creditor, it is important to say your piece politely, while also keeping your dignity intact.