Understanding the Human Side of a Debt Collector May Help You Deal with One (Part 2)
Understanding the Human Side of a Debt Collector May Help You Deal with One (Part 2) Yes, the current financial climate is gloomy and threatening: the consumer's debt is mounting, and the number of cars repossessed and homes foreclosed is escalating.
And maybe your personal debt is ballooning. Your personal debt not only impairs your financial future through an unfavorable credit score, but also plays havoc with your present everyday living.
Even the minimum payment each month may look maximum to you with so many other bills that need to be paid. On top of that, dealing with creditors has become a nightmare due to the avalanche of phone calls and mails from you debt collectors.
But it doesn't have to be like that.
Simply learn how to confront your problems and deal with your debt collectors.
First, you must have the intention to bring your account current. With the intention comes the determination to settle your debt at any cost.
Wipe out the most expensive of all your debt FIRST - which is often the credit card debt. This is because credit card debt may hurt you more than you can earn. At 24, 25, or even 29 percent of interest rate, credit card debt may literally wipe you out financially. In addition, it can have an adverse impact on your credit score - something you need to think about long-term.
To overcome credit card debt, you need to set a specific goal with a specific period to get yourself out of that debt.
Accordingly, you can break your big mountain of debt into smaller hills such that you will be able to climb them. With the right mindset, you may begin to contact your debt collectors with confidence.
Communication is the most important component in the world of credit and collection. Without good communication, there is no solution to your financial problems. Without a positive relationship with your creditor, there is no way any meaningful help - in the form of special payment arrangements - can be extended to you. Communication is the best option for you to get out of debt. Good communication demonstrates your sincerity and resolution to get out of the debt situation. Your debt collectors want to see your goodwill, not your lament on the difficulties of your present financial situation. Remember, debt collectors are immune to all negative conditions. Just staying positive at all times is the key to good communication with your creditors.
On the other hand, ignoring your creditors is the worst possible option you can take, and it will never pay off. In addition, don't ever make a promise to your creditors that you know you will not be able to fulfill.
If you have a repayment plan, which has to be realistic, and all the related documents in front of you, then make that important phone call.
Take a deep breath, and call your debt collector. The following is what you should do.
Ask to speak with the person who is actually handling your account. Give the collector your account number, giving the impression that you are ready and prepared to settle the account. The first impression is important.
It is also important to document your conversation, such as the date and time of the call, the first and last name of the person, the title, as well as the specific telephone number to call back.
Document any agreement or arrangement made to show your sincerity and your concern of your credit. It is important to create in the mind of your creditor that you are the person he or she would like to work with.
Negotiate with your debt collector the repayment plan you propose. Predetermine the bottom line you are prepared to accept. Keep an open mind to the counter offers from your debt collector. Negotiate and negotiate until some sort of arrangement or agreement is reached.
If your debt collector is rude, ask if you should call back later, and also mention in passing that you would like to start on a positive note, without getting yourself irate.
Remember, always establish a good rapport during the first call. Never give more than you can handle. Always follow through a promise made to your debt collectors. They, too, have their goals to make. Put yourself in their shoes, and this is exactly what you should do when dealing with debt collectors.
About the Author:
Stephen Lau is a researcher and writer of medical research for doctors and scientists worldwide. His several publications include "NO MIRACLE CURES" a book on healing and wellness, and "HOW TO TEACH CHILDREN TO READ" a book on reading strategies. He has also created several websites on health, golf, Zen living, mental depression, and money management, including the following: www.smartcreditsmartmoney.com www.nomiraclecures.com
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