How Do You Negotiate With A Collection Agency?
Debt-collection agencies can strike fear into the hearts of consumers, but you shouldn’t be afraid to negotiate with them. If you know your rights, remain calm and go into the negotiation process with reasonable expectations, you might be surprised at how willing the agency is to work with you. You may even be able to settle the debt for less than you owe and preserve your credit history in the process. Review your budget and figure out the maximum amount you can pay monthly to reduce the debt. Learn your rights when it comes to debt collection. The federal Fair Debt Collection Act outlines what you can and cannot do, as well as how the collection agency can operate and communicate with you (see Resources). Call the collection agent when you can be focused and calm. Tell him how much money you can afford to pay, either in a lump sum or through monthly payments. Be polite but firm in communicating what you are able to pay. If you start to get emotional during the conversation, get off t
