How to Best Deal with Credit Card Debt Collectors
Unfortunately, credit card delinquencies are the sign of the times in which we live. With high unemployment rates and homes in foreclosure, many individuals have found themselves in the unfortunate position of being late on their credit card payments.
And with late payments, as we all know, comes credit card debt collectors. If you are in over your head with credit card bills and credit card debt collectors have begun calling you, here’s what you need to know:
- Ask the debt collector to validate the debt. Under law, credit card debt collectors must send you your debts in writing if you request it. Wait until you have received the debt validation and you have reviewed it before you begin to make payment arrangements.
- Understand that, under the Fair Debt Collection Practices Act, debt collectors are not allowed to contact you before 8AM or after 9PM. In addition, they are not permitted to use any profanity or make any threats against you. If anything like this has been happening, immediately contact the FTC to file a grievance.
- You have the right to request that all future correspondence between you and the creditor be done in writing. Under law, the creditor must abide by your request. This can put an end to those phone calls every day.
- Ever time you have contact with the debt collector, take down notes. Keep any voicemails or letters from the debt collector, and write down the times, dates and the name of the person you talked to.
- Once you have established a set of guidelines with the debt collector, begin working with them to arrange a payment plan. You may also be able to negotiate a lower payoff amount than you currently owe. Regardless of whether you pay off your debt in full or settle the debt for less you will experience a good hit on your credit score; therefore, it is often in your best interest to negotiate a lower amount. Most importantly, don’t agree to a payment plan that you cannot realistically afford to pay each month; instead, start the negotiations low so that you can be better equipped to pay off the debt in a reasonable amount of time.
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