No matter how much you avoid it, debt will not just vanish into a black hole. At some point, eventually, you will have to sit down with the debt collection agency and negotiate. Sitting down by yourself with the collection agency on the other side can be tough. Collection agencies have arm-twisting methods and bigger cards to play. However, you too have a few cards to play to get what you want. You just have to know how to present it, you’re not in court, so you do have leverage to play with.
1. Stick to the Truth
No collection agency wants to hear about the problems you’ve been having in paying your bills, but they need to know why you are in a hard place. It could be because you were laid off work, had a medical condition or had to help a family member in trouble.
Whatever it may be, you should tell the truth. Don’t make up a story. The problem with lies is that they’re not consistent and change over time. Once you sit down at the negotiating table, it may be quite hard to keep track of all the reasons you’ve given. A collection agency is not stupid and will be able to point out a lie. This won’t bode well when you’re trying to negotiate.
2. Know what you Can Afford
The deal that you are negotiating should be able to fit in with your financial situation. This means before the meeting, you go through your own financial situation with a fine-comb and check how much you can realistically pay. Agreeing to a bigger amount would just stress your financial situation even more.
Also, ensure you carry all the vital documents which will help backup your points during the negotiation.
3. Put it in Writing
Once you have agreed on a debt plan, don’t leave the meeting without a written proof. Before you start paying even a dollar, a contract will ensure that the collection agency doesn’t go back on its word.
4. Bankruptcy Card
If you’re deep in debt and the collection agency has pushed you into a corner, you still have one card to play. Threatening to file for bankruptcy is not something that can be done lightly. It will have serious negative effects on you that will stick for a long time, though you get off the debt.
So, go into a debt negotiation with confidence and don’t walk out until you get a satisfying deal.
