No one wants to be in debt. No matter the reason you find yourself in this situation, it can feel overwhelming when you aren’t sure of the way out. You don’t want to stay in debt, but you’re struggling to pay it all back. What can you do? Right now, the most important thing to do is learn how to deal with debt collectors. One of the most important things you need to know when a debt collector calls you is that you have legal rights. No matter what you owe and how far behind you are, they are not allowed to harass and intimidate you. There are ways for you to make a bad situation a little better. 

How to Deal with Debt Collectors When You Can’t Pay

Whether you’re a little short this month or seriously behind on payments, it is best you act quickly to minimize the damage of having debt you can’t afford. At this point, you don’t have a lot of great options but there are a few things you should do and a few things you should not do (even though you probably want to!)

DO

Ask for specific information about the debt

Without admitting the debt is yours, get information from the debt collector. Ask who the original creditor was, the original debt amount, and how much is still owed. The more details the debt collector can provide, the better. 

Try settling or negotiating

Now is the time to see if the debt collector will settle for a portion of the cost if you pay up front. They may decide that some money is better than no money. If they still want the full amount due, you may be able to set up a payment plan.

DO NOT

Ignore the repeated attempts to contact you

Ignoring a debt collector when a debt is yours can cause further damage to your credit score and report. Plus, it won’t work anyway. Debt collectors will continue to contact you until the debt is paid.

Admit the debt is yours

Did you notice above that we told you not to admit it is your debt? If the statute of limitations has expired, the debt collector can no longer sue you to recoup the debt. Admitting a debt is yours may reset the clock on old debt. This is why it is never a good idea to do so, even if you know the debt is yours.

Give personal details over the phone

Even if you’re nervous and they’re being pushy, avoid excessive talking. Don’t share anything over the phone, including if you can pay and how you plan to. Instead, request a letter with the original debt information. Share as little about yourself, your home, your family, your job, and your financial situation as possible.

We know this is scary, confusing, and difficult. We’re here to help you! At this point, it’s essential to learn how to handle that debt efficiently. We have a team of professionals here to help you to keep up with financial obligations and make sure that you pay your debts off as quickly as possible. If you ignore the calls and don’t negotiate a payment plan, it is going to hurt your credit report and make it harder to get essential financial loans and lines of credit ranking in the future. Our credit consultant will go over your current financial debt profile and help you to determine the best way to improve your credit. This is just one of the services we offer!