Growing stack of bills on the table, call log full of 1-800 numbers?
Let’s face it, debt SUCKS! The horribly hot feeling that occurs when the phone call just won’t stop! That frustrating moment when every knock on your door seems like your Creditor is here again. Whether you are having a cash flow quagmire, digging yourself out of a financial black pit or rebounding from an investment gone haywire.
Here few tips and tricks you can use to arm yourself in the fight to take back your financial freedom!
You don’t HAVE to speak to THEM on THEIR terms….
A collection agency has the right to seek their remedies at law, yet they do not have the right to make your life a complete and miserable hell. This does not mean you should ignore thier calls indefinitely; it means you have the right to pick up the phone and demand them not to disturb your quality of life. An easy way to get creditors off your back initially is to DISPUTE. This means keeping meticulous records of phone calls and representatives you have spoken with. This implies telling them that this is not your debt. Debts become sold off and purchased by multiple companies. By disputing your debt, the collection agency has 30 days in which they must leave you alone while everything is sorted out. Guess what? If they cannot produce the proof of your ownership, they must dismiss everything entirely. Yes, that’s right… the entire debt goes away. You have a right to request all pertinent information regarding your debt, and you cannot be harassed until it is furnished properly.
If an agency does try to contact you before the investigation has been settled, you can file a complaint in court and seek your own remedies at law. Letting the attorney general’s office know about such an infraction isn’t a bad idea either.
You do not have to give up ANY information you do not want to.
Debt collectors are armed with a myriad of tools to scare, intimidate and downright petrify people into paying up immediately. They may try some of these tactics in order to “verify” or “collect” certain information in order to locate you better. Remember, debts can be sold and resold multiple times, and these people do not always keep good files on you. Understand a fishing expedition from the real McCoy. They are not allowed to access vital information about you such as your Date of Birth, Social Security Number, etc. Even though they may ask, it is not necessary for what they are trying to accomplish, so keep your cards close to your chest!
Even if a debt has been paid off, it does not IMMEDIATELY disappear from your credit report.
In all the conversations that you have with a debt collector, it is highly doubtful that the topic of healing your credit score will pop up. They are not obligated nor paid to be your financial coach, which equates to a lack of beneficial information for YOU. A cleared debt can still hang on for up to 7 years, marked as “paid in full”, but still has a negative impact. If you are in a position to actually negotiate with the collection agency, make sure you get IN WRITING, that said debt would be completely removed from your credit report once the final balance has been paid. Keep that proof stored somewhere safe.
Good news, these things have time limits!
Different states have different statutes of limitations on debt. It is wise to find out what kind of rules your state is playing by, but generally, debt has a 7 year age limit on how long it can negatively impact your credit score. Your debt is not ERASED, but it no longer drags you down either. Do your research. Gather all of the related documentation for each debt. The time clock starts the moment the debt went INTO collections, even if the date reported differs on your actual report. Knowledge is power, time to take it back.
If you simply cannot beat them, join them!
You would be surprised at how willing a debt collector is to SIGNIFICANTLY reduce what you actually owe in order to get your debt off of their books. Fresh debt (within 0-9 months) will more than likely be pretty difficult to negotiate a settlement offer on, but anything over 1-2 years is fair game. One tactic is to let them talk all of the intimidation talks they want to talk and stay FIRM. Did the caps do it for you? No? Ok. firm, firm. Remember, these collectors get paid on how many debts they can resolve, and depending on how desperate they are on any given day, you could work out an arrangement where you pay 30 cents per original dollar owed if not less. Who wouldn’t like that? Paying $300 on a $1000 debt? They want to push your hand, so you push theirs. You cannot do it, you won’t do it (until such and such date), and uncle died, the kids need things… do not be afraid to be a tough guy. Think of the most irritating and annoying person that you know, and imagine they are trying to collect some money. Take the knowledge and the fact they need you to say YES and use that to your advantage. THIS IS DEBT SPARTA!
All else fails, become the biggest Tattle Tale in Debt History!
Phone calls at 6 am, or 10 pm are illegal, point blank. Screaming, yelling, cursing – illegal. You report that bad behavior and you report it posthaste. Report them to the Federal Trade Commission and threaten to sue the collection agency for it. You would be surprised how quickly all the negativity dries up like a plump grape in the Sahara sun once you throw around the words “I-will-sue-you”.
Let’s face it, hard times happen to many of us – and at any given moment. Life can be moving along swimmingly one moment, and turn into a special level of hell another. The most important thing I can pass along to you is to keep your cool. I know it feels like your world is literally crumbling down around your ears, but taking it one chunk at a time will make you feel oh-so-much better. Just the knowledge that you have taken the first step in tackling a behemoth can be the wind beneath your wings you have been looking for.
Take back your power and remember – the race is not given to the swift, but he who endures to the end.
