When you’re living under the burden of financial debt, to settle your accounts is the best way to get out from under the pressure and stress of debts owed. You can approach this from a standpoint of “Do-it-Yourself”, but you need to know a few things first. Negotiating with the creditors will surprise you, as far as how much leniency they can show. Don’t fear them, they are more willing than you think to work with you to get the matter resolved.

If the creditor has already passed the debt off to a collection agency, then you can deal with them the same way. They may have already tried to call you and contact you by mail. Here are five good tips for handling this on your own with a collection agency.

  • Credit Report Removal – always keep in mind that these things affect your credit, and upon a satisfactory solution, the agency will need to remove this debt from your credit report. It’s amazing how many times this doesn’t get done without your insistence. You need this done immediately upon completion of your debt solution.  
  • Legal debt verification is a must. By asking them to verify the debt, federal regulations say they must do so within 30 days of your request, and if they don’t verify and validate, then they are disallowed from collecting.
  • Communicate via written word. The phone by itself is not good enough, records can get misplaced and words be misconstrued, but once words are written down, they’re hard to refute. Always make copies of correspondence to the agencies. Certified mail is wise.
  • This is a fact- the longer you’ve struggled with this debt, the easier time you’re going to have reaching a solution. Many times a lot of the interest accrued can be waived just in order to bring this case to a close. Garnished wages is a place you never want to get to. It’s much better for you, to be able to make the decisions where your money goes with each paycheck, than to have it come out automatically and you not have any say-so. Maintain a dialogue with your creditors to avoid this. Some creditors, if a debt is old, will simply write it off on their taxes, but regardless, negotiating and communication is always key in solving these matters.
  • Negotiation – main key to any financial problem. Always negotiateyour situation with the agencies. Be shrewd and don’t reveal any personal intentions for your money, just deal with the debt and your inability to pay as it’s set up at this time. Hardship they can understand.

Many people throw up their hands in frustration, and simply toss notices in the garbage without opening them, and not answering the phone when collection agencies call. This settles nothing as your debt climbs higher. These agencies will work with you, if you will work with them. Don’t be afraid to have a conversation with them, and before long, your debt could be over, and a lot less painful than you believed.