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How To Negotiate Down Debt

Written by Millennial In debt on June 23, 2021

So Debt Collectors Are Calling You Up?

Listen... we can all collectively agree that debt sucks... and thus debt collectors are not often sought after companions. It's their job we get it... I know I know... but it still doesn't change the fact that a phone call from them can really ruin your day.

Why would they be calling you? Well.. that is easy. If you're getting a call from a debt collector it means you have a debt that is overdue and now they must commence the chase. Though we have gotten pretty crafty at eluding the debt collection calls, avoiding them can cause serious damage to your credit score and can eventually lead to wage garnishment.

What to know about debt collectors/collections:

  • If a debt collector is calling you that means a creditor has reported you to someone.
  • There are times when a debt collector is working for the creditor as an in house employee
  • Other times your creditors will outsource the debt collectors from an outside company
  • Lastly- when the debt has been left unpaid for too long, your creditors may sell your debts to a collection agency. So you are not automatically in collections if you are getting calls from debt collectors.
  • If your debt has been sold to a collection agency, you must now work with that agency and will no longer deal with the original creditor you borrowed from.

How to navigate a conversation with debt collectors

Like I mentioned earlier, debt collectors are simply doing their jobs. Because they are doing their jobs, that means that there are things they can do and can not do. In order to arm you with the best opportunity to get what you want, here's a run down of what you need to know.

What they can do:

  • Contact you about the debt that you owe (this can be via mail, email, or phone)
  • They can add fees to your current outstanding debt as well as interest.
  • They can open up a judgement against you if you don't pay your debt, and this means wage garnishment is a VERY real thing !

What they can not do:

  • Threaten or harass you: this means both in language and excessive behavior. (They can not curse at you, threaten legal actions against you or constantly call you)
  • Though they can charge interest- the interest rate can not be higher than what you originally agreed to pay from your original creditor.

Now that you know the basics of what a debt collector can and can't do you're ready to tackle them head on in a 1 on 1 conversation. So what do you say? I've you covered! Grab your free negotiation scripts here! When you sign up for our mailing list you'll get three negotiation scripts: 1) Decreasing your credit card APR 2) Increasing your credit line on your credit card and 3) Lower/ Delete your debt.

What's really important to remember once you use this script to get what you want, make sure you get everything in writing and that you stick to the agreement you have worked out with your debt collectors. If not they can (and have done so many times) revert to the original agreement you had prior to your negotiations.

If you need a bit more visual guidance check out this video below of the 4 steps you need to take to negotiate your debt!

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Until next time,

Hey there! I'm Melissa, co-founder of Trials n Tresses, natural hair and beauty lover, binge tv watcher and lover of life. When I am not creating content for TNT, I'm busy teaching the future of society.
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