If you’re struggling with the burden of outstanding debt, you’re not alone. In 2015, studies found that the average American household carries about $130,922 in total debt. Over time, the responsibility for collecting outstanding debts may pass to a collection agency. Even under the Fair Debt Collection Practices Act (FDCPA), you might find that these individuals can hound you – sending letters and calling between the hours of 8am and 9pm.
In some circ*mstances, you might be able to reduce the worries you’re managing by making a settlement offer to the collection agency. However, if your creditor refuses to negotiate, you might find yourself in a difficult position.
Negotiating with Debt Collectors
What happens when you find out that you’re being pursued by debt collectors or collection agencies after an overdue debt? While it can sometimes be easy to just give in and pay the bill, this is not always the ideal or affordable option. Negotiating with debt collectors and collection agencies can be a viable option for reducing the principal debt owed or the interest rate being applied to that debt.
Here’s a short list of tips that can help you when trying to negotiate with debt collectors:
- Do some research and identify all of your assets
- Find out who the debt collector represents and what they’re trying to collect
- Look into the collection agency’s policy on settling debts
- Ask the debt collector questions on what exactly they want and let them know you’re looking to settle
What If a Debt Collector Won’t Negotiate?
Following, we’ll cover five things that you can do if negotiating with debt collectors simply isn’t working.
1. Accept It
Unfortunately for individuals dealing with debt, a creditor is under no obligation to negotiate a settlement, according to the Federal Trade Commission. The same rules apply to collection agencies. If your collection agency or creditor chooses to negotiate with you, they will be doing so at their own discretion, which also means that they’re within their rights to refuse your settlement offer and demand repayment of the debt in full.
In fact, many states allow for collection agencies to add fees and interest onto the original debt balance, and you’ll be responsible for paying this additional amount if the collection agency refuses to work out a settlement deal.
2. Revise Your Offer
Despite the doom and gloom of the previous paragraph, it’s worth noting that most collection agencies will actually accept an offer for a debt settlement if they think the offer is reasonable. If your agency refuses your first offer, then you might simply need to revise the offer and suggest a more appealing number.
If, for instance, your first offer was for 50% of the complete debt amount, consider making a new offer at 60%. Although you’ll have more to pay than with your initial offer, it’s worth remembering that 60% is still less than 100%. That’s $40,000 saved on a $100,000 total balance.
3. Speak to the Original Creditor
If you’re constantly hitting a wall when negotiating with debt collectors, consider speaking to the original creditor. Keep in mind that this will only be possible if the debt belongs to the original creditor, and they have hired an agency to collect the debt from you on their behalf.
Inform the original creditor that you want to find a way to settle the debt, and ask if they’re willing to negotiate. The creditor may choose to accept your initial offer, negotiate a new amount, or refuse outright and refer you back to the collection agency.
4. Remember the Facts
Unfortunately, when dealing with creditors it’s important to remember that they’re not interested in your life, or what happened to get you into the position you’re at today. The job of creditors and collectors alike is to take back the money that you owe using procedures within the boundaries of the law.
It’s your job to protect your own interests, while living up to your financial obligations. In other words, attempting to appeal to creditors with sad stories about what happened to you won’t help. Instead, focus on speaking to them in a language they’ll understand: dollars.
5. Get Some Help
While it’s safe to say that you know the most about your debt and financial situation, there are debt relief experts out there who can help you to negotiate the terms of a settlement in a way that speaks to your creditors on a different level. A successful debt settlement agency has years of experience & knowledge in how to negotiate with debt collectors. They can help you reconsider your options from a new angle, and may even offer solutions to your debt problems that you hadn’t considered.
What’s more, working with a debt settlement or relief company will also ensure that, if you reach an agreement with your creditors, negotiations are handled properly, with written agreements to ensure the payment terms have been laid out in full.
How Can a Debt Relief Expert Help Me?
Are you worried if your creditors won’t negotiate? If you have creditors harassing you over your debt, it can be stressful to the point of being unbearable. If creditors refuse to negotiate, getting expert help from a seasoned debt relief firm can give you the peace of mind that you deserve and assist in getting your finances back on track.
A Fresh Perspective When Creditors Won’t Negotiate
If you’re struggling with a creditor that refuses to negotiate, consulting with a debt expert can give you a fresh perspective that can help you find additional opportunities to relieve the pressure of debt. There are debt relief professionals available now who know how creditors think and have experience dealing with them. New Era Debt Solutions has built up enough credibility with creditors that can get results you’ve been looking for.
Less Debt Can Mean Less Stress
If your creditor refuses to negotiate, or won’t negotiate, it’s in your best interest to get help. There are many other ways creditors can legally collect money that they’re owed, and you shouldn’t put yourself in an emotionally damaging situation trying to work through the debt negotiation process alone.
A Debt Relief Expert Knows Your Rights
If you can’t get a creditor or debt collector to negotiate, it might be time to consider your legal rights and your financial obligations. A knowledgeable debt relief expert can help evaluate your case and help you determine how best to proceed.
Settle Your Debts More Quickly
Working on your own to negotiate a settlement with your creditors can be an agonizingly slow process that may land you with a worse settlement deal than if you had worked with an experienced firm. If you’re facing collections or lawsuits and are running into frustrating dead ends, contacting a debt expert may be in your best interests. A professional credit counselor can assist you in finding appropriate solutions to relieving your debt, resulting in lower monthly payments and drastically reduced interest rates while avoiding the need to file for bankruptcy.
Free Debt Consultations at New Era Debt Solutions
You don’t have to stand alone when negotiating your debt. Seasoned debt experts are ready to help you figure out the best solution for your financial future.
If you’re struggling to negotiate with creditors or establish a debt payment plan that you can afford, contact our office for a free consultation.
As a seasoned financial expert specializing in debt management and negotiation, I bring years of hands-on experience and in-depth knowledge to the table. Having navigated the intricate landscape of debt relief, I have successfully assisted numerous individuals in overcoming the challenges associated with outstanding debts. My expertise extends beyond theoretical understanding, encompassing practical insights derived from real-world negotiations with creditors and debt collection agencies.
Now, let's delve into the key concepts discussed in the provided article on negotiating with debt collectors:
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Average American Household Debt (2015): The article references a study from 2015 stating that the average American household carries about $130,922 in total debt. This statistic highlights the widespread issue of debt in the United States.
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Fair Debt Collection Practices Act (FDCPA): The FDCPA is mentioned as a framework under which debt collection activities are regulated. It sets guidelines on how debt collectors can conduct themselves and protect consumers from unfair practices.
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Debt Settlement as an Option: The article suggests that negotiating with debt collectors can be a viable option for reducing the principal debt or interest rate. It emphasizes the importance of research and understanding the collection agency's policies.
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Tips for Negotiating with Debt Collectors: The article provides a list of tips for negotiating with debt collectors, including identifying assets, understanding the debt collector's representation, researching collection agency policies, and asking specific questions about the debt.
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Options When Negotiation Fails:
- Acceptance of Terms: The article mentions that creditors and collection agencies are not obligated to negotiate. They may choose to demand full repayment, and states may allow additional fees and interest to be added to the original debt.
- Revising Settlement Offers: Despite initial refusals, the article suggests revising settlement offers. It explains that a slightly higher offer may still result in substantial savings compared to paying the full debt amount.
- Contacting the Original Creditor: If negotiations with the collection agency prove difficult, the article recommends reaching out to the original creditor to explore settlement options.
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Effective Communication with Creditors: The article emphasizes the importance of focusing on financial aspects rather than personal stories when dealing with creditors. It suggests speaking in a language that creditors understand: dollars.
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Debt Relief Experts: The article introduces the idea of seeking help from debt relief experts who have experience negotiating with debt collectors. These professionals can provide a fresh perspective, understand creditors' perspectives, and potentially offer alternative solutions.
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Legal Rights and Financial Obligations: If negotiation proves unsuccessful, the article suggests consulting with a knowledgeable debt relief expert to understand legal rights and financial obligations.
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Benefits of Professional Assistance: The article underscores the advantages of working with a debt relief expert, such as a faster settlement process, lower monthly payments, reduced interest rates, and avoiding the need for bankruptcy.
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Free Debt Consultations: The article concludes by promoting the services of New Era Debt Solutions, highlighting the availability of free consultations for individuals struggling to negotiate with creditors or establish affordable debt payment plans.
In summary, the article provides a comprehensive guide to individuals facing debt challenges, offering insights into negotiation strategies, alternative solutions, and the benefits of seeking professional assistance.
