How to handle debt collection calls

At some point in our lives unplanned for events befall the best of us and some can have far-reaching consequences. Take the loss of a job for instance. That’s a near certainty to occur to us a least once in our working lives and one of the consequences is likely to be falling behind on our bills. Unless you happen to leave your job with a generous severance package and have large pools of savings to draw on, chances are there are going to be some late payments ahead for you. Rather than cringe in fear waiting for the collection calls to come, you may as well buckle up and make a pre-emptive strike.

Making the call

Assuming you have the means to make some kind of payment, round up all your statements, list the balances and minimum payments along with the phone numbers and prepare to start calling. Bear in mind that you are going begging essentially and assume the humble position. If the account rep can’t suspend your payments, ask in the nicest fashion if they think a supervisor would be willing to bend the rules. That’s music to your account rep’s ear as they often are not paid well enough to go out on a limb and will be more than willing to pass you on to someone higher up.

Talk to the right person

Should you be unfortunate enough to get the village crank on the other end of the line, wait a couple of hours or until a shift change is likely after 5pm and call again. The next account rep you get may treat you completely differently. Sate your case plainly, emphasizing that you are willing to pay but you are between jobs. And ask for the moon. Some auto credit companies may have programs that suspend your payments for as much as three months while most will do at least two. Cell phone and credit card companies may agree to a two month grace period, but you will never find out until you pick up the phone.

Settling your debts

Rebuilding your credit report score should become a top priority once your cash flow position improves. Start by getting a copy of your credit report to see who has reported your missed payments and get a total of what you owe. You are now going to make a different type of call entirely; once again, politeness is the key. You can choose to pay in full or you can ask for a settlement but not one so outrageously low that you start off on a bad note with the account rep on the other end of the line.

You may even go so far as to ask that the settlement be split into three or four equal payments. If your debt is a year or older, many companies will agree to a sharp bargain rather than sell the debt for 10 cents on the dollar to a collection agency.

Get it in writing

And should you be skillful enough to reach an agreement with which you can live, ask for the settlement agreement in writing. Once you have secured the promise of a settlement letter, humbly ask if you will be able to get a paid letter at the end of the exercise and if they will be reporting to the credit bureaus after you have paid. If they tell you they do no issue paid letters, politely ask to be excused and call the next creditor in line.

Repeat the call

Repeat the process until you have your offers in hand and you paid letters secured in a safe place. Then check your credit report a month or two after you have paid the debt to ensure they have updated your record. If nothing has happened, your paid letters will be proof to the credit reporting bureaus that you have paid or settled your debt and they are required by federal law to upgrade their records.

For more tips on credit matters visit www.my-credit-report-score.com