Debt Relief Hotline

The Most Common Mistakes Made When Dealing With Debt Collectors

Dealing with debt collectors is never a fun experience. They call at all hours of the night and day, send you horrible letters and make your life miserable, while usually staying just within the law. It’s not pleasant, and sometimes we make it worse. Let’s look at the most common mistakes made when dealing with debt collectors.

1. Paying the debt without receiving the confirmation/settlement letter that the account is closed is one of the biggest mistakes made. After you pay off any debt wait 2 to 3 months and then check your credit report to make sure it shows closed or settled.

2. Don’t lie - It seldom works. Most times you land up caught in the lie and then creditors become less patient in receiving their money and are more likely to simply sue you. It’s a big hassle you simply don’t need. If you are honest whether they like it or not you are much less likely to find yourself sued.

3. Never ignore the collection agency. They are not going to go away. It will simply get worse because they will escalate the number of calls they make to you and the action they take. If you are working they may be able to garnishee your wages. If you have assets depending on the type of debt they may have claim to them.

4. If there is a mistake or you believe you have been wronged don’t delay filing a dispute. Each state has a statue of limitations so don’t miss the deadline.

5. Do not become intimidated or bullied by the collection agencies. You should always be treated with respect regardless of the money you owe. There are state laws that the collection agencies must follow including when and how they can phone you. Don’t be afraid to file a complaint if you are not being treated properly.

6. Never agree to a payment plan or make a promise you won’t be able to keep. For example don’t tell them you’ll make a payment on Friday if you know you won’t be able to, or don’t tell them you’ll pay $100 if you know you’ll only be able to pay $50. It will simply intensify the problem.

7. Never bounce a check because this will cause you to be sued almost immediately.

8. Don’t ignore calls. It’s actually to your advantage to answer because then you can control the situation at least somewhat. Otherwise they’ll just keep calling and calling anyway.

9. Never sell an asset that has a loan associated with it.  Never pawn your items to pay a bill collector. And Never Ever get a payday loan to pay a collection account.

10. Don’t give up and think there is simply no solution for you. Credit counselors can help you and debt consolidation is the best option if you find yourself with being hounded by bill collectors.

We borrow with the best intentions but life changes and sometimes we find ourselves unable to make those payments. The job of the debt collector is to get the money you owe and the tactics can leave you feeling upset. The job of a Debt Consolidator is to help people in your shoes eliminate the debt and deal with bill collectors so you don’t have to.

Back to Whitepapers