How To Negotiate With Debt Collectors

Negotiating with debt collectors is intimidating, but here we will show you what you are legally allowed to do to pay the minimum amount possible.

Trust But Always Document

The debt collection industry is notorious for high turnover, so keep in mind that you may be talking to a 19-year-old kid with zero personal finance experience.

Document everything during a conversation. Get the debt collector's name, employee number, and even the manager's name. Documenting each conversation will help you stay organized and updated on how the account is progressing.

Debt Collector Negotiations

If you work with a debt collection agency for small businesses, they will typically be willing to negotiate with you because they understand that something is better than nothing.

If you have fallen past due, ask creditors what fees they would be willing to waive. Often, interest charges are not eligible to be waived, but late fees and over the limit fees are.

Never Pay Over the Phone

Debt collectors will always push for payments over the phone. If you tell a collector the payment is in the mail, you can only imagine the eye roll you get.

If you notice a payment taken from your checking account without authorization, contact the collection agency and ask for the recorded phone call of the transaction.

All check by phone payments should be audio recorded and saved with the file in the event of a dispute.

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