Negotiate with your collection agent

Collection agents are often associated with untouchable people who must be obeyed. The reality is that we should not be afraid of those people with whom it is even possible to negotiate. On the other hand, do not give the task of negotiation to a company or to a third party because it is possible to do it yourself. This may seem scary at first, but negotiating with the agent personally will save you a lot of money in the long run. Here are six tips for successful negotiation with the debt collector.

Be prepared

If you decide to negotiate with your collection agent, you must be well prepared and knowledgeable about your current financial situation. You need to know your monthly income, monthly expenses and other debts. This information is important to know because it will tell you how much money you can actually pay to your agent, either monthly or in a single payment. Start making a budget to see how much of your surplus income you have left after all expenses are paid. Having accurate numbers helps you negotiate better and saves you from accepting an offer that exceeds your ability to pay.

Have a hard skin

 Have a hard skin

Although this task seems difficult, it may be the best way to negotiate. The law prescribes any physical abuse on the part of the officer towards you, but it does not prohibit the agent from being verbally aggressive. Collectors collect their money by taking back the money you owe and, believe it or not, they will do everything in their power to get it. Being mean is an integral part of the agent’s strategy. They want to humiliate you by calling you good for nothing or useless. Have a hard skin and do not succumb to these provocations.

Know the law

The federal and provincial governments have all developed legislation on the activities of debt collectors. For example, if an unsecured debt has not been paid on time, there can be no legal recourse. It is important that you know the laws in your province. If, for example, you have exceeded the time limit to repay, you are not legally obliged to pay your collection agent.

Do not make multiple payments

money payment

Although multiple payments may seem like a good idea, it can complicate the repayment process. If you negotiate with your collection agent to make multiple payments, this may result in the renewal of the period during which the repayment should be made, and this may also result in the possibility of legal recourse. Instead, use legal counsel to obtain all the information regarding multiple payments. Thus, you will be informed and ready to negotiate.

haggle

 haggle

Bargaining is, in fact, one of the best options when you are trying to settle the debt with the debt collector. Do not forget! Your debt has been sold to collection agencies that will try to make even more money on your back. It is then plausible that these agencies exaggerate the value of your balance. Know the exact balance of your debt and, above all, do not give in to their first offer. Also, do not accept the possibility of monthly payments that your agent could offer you. Instead, you should negotiate a large single payment. Thus, you would have a better chance of getting a discount on the initial balance sheet. The salary of the collection agent is based on commissions, which means he wants to get your money back as soon as possible. As a result, they are more inclined to negotiate. In order for your negotiation to be successful, contact your collection agent personally at the end of the month. Usually, these agents have monthly quota fill. As a result, at the end of each month, they will be more open to negotiating and settling the account to fulfill their quota.

Ask for paper evidence

 Ask for paper evidence

If you intend to settle the debt, you must absolutely obtain all documents and evidence in writing. If you agree to a reimbursement plan proposed by your agent, be sure to obtain a written version of the agreement. Also, make sure you make no payment without first receiving a written agreement. Finally, make sure that the written agreement makes it clear that following the payment, you will be released from your debt to the collection agency. Doing business with collection agents is not a pleasant thing. Agents want your money and will do whatever it takes to get it. On the other hand, by following our advice about trading, you will be able to get out of debt more easily and have more to do with these agencies and their agents.