Debt collection methods can be extremely annoying and predatory, or even unlawful. There are ways to work with this type of situation and come out on top. You just need to be efficient in dealing with the constant menace of the debt collection agencies.
Here are 3 strategies you can follow to handle debt collectors:
Know the Facts
The key is getting all of the information you need without making any promises or divulging information that may be used against you. Study your credit report and know what’s on it. If you find any errors, take the necessary steps to dispute them. You can always monitor your credit through apps that allow you to keep a close on your scores without damaging your credit.
Understand Your Rights
Get a copy of the Fair Debt Collection Practices Act and read through it. Many debt collectors use tactics that are legal but somewhat unfair. Let debt collectors know how they can contact you. When a debt collector calls you, they must tell you who they are and why they are contacting you. It’s also within your right to challenge a debt.
Don’t Let Them Bully You!
Debt collectors will apply as much pressure as necessary to get you to give what they want. While it’s against the law to use profanity or threaten you with harm, they can be very intimidating. As long as they can force you into an agreement or get you to acknowledge the debt, they can reset the amount of time they have to pursue you under the statute of limitations.
Once you have your credit report and have verified the information that’s on it, you can look into ways to start paying off the small debts. If you are unsure of how to handle the situation by yourself, contact a credit counseling group to find debt relief options that work for you. Worst case scenario, there is always the option of bankruptcy. Know your rights and take the necessary steps to learn as much as you can.