Simple Yet Powerful Debt Settlement Tips

Share You may not be aware of how a few debt settlement tips can help you when your creditors are on the phone.

Many of us have been here: the phone rings, you recognize the number as the debt collector, and you let it go through to your mailbox.

But before you let your voicemail fill up, consider how answering that call can not only take some unwanted stress out of your life, but also help you start paying back what you owe.

Here are a few debt settlement tips to help you pay less and protect yourself when tackling your debt.

The first thing to remember is that debt collectors are businessmen, and as such are willing to negotiate with you to get their money back. With the right debt negotiating, you can settle your debt for as little as half of what you owe.

Especially around the end of the month or holidays, and it's time to calculate their commissions, companies will make you discounted offers and also give you different payment methods.

One of the first debt settlement tips you should remember when dealing with the collector is this: read these offers, and read them very carefully, to make sure any offer really is as good as it looks.

If the collector doesn’t take the initiative in offering a discount, don’t hesitate to be proactive about making your own offer. And if you don’t like the collector’s first offer, don’t fear making a counter-offer.

Make sure that, in crafting your offer or counter-offer, you consider what will be attractive to both you and the collector, and be explicit about how much you intend to pay, how you are going to pay, and when the payment will be received.

Some more debt settlement tips relate to simply being honest, both with the collector and with yourself.

First, be realistic with yourself about how much you can pay, taking your other bills and necessary expenses into account. Trying to rush getting out of debt can just land you in even more debt.

Once you know how much you can pay, offer the collector less than that. If he won’t take it, at least his counter-offer might still be within your reach. Also be realistic about what you can pay, and don’t agree to a payment schedule that is too ambitious.

Finally, be honest, but not too honest. Debt collectors don’t need a lot of personal information like your bank account number or place of work, so don’t give it to them.

They also aren’t interested in your personal narrative, and telling them the whole thing is more likely to annoy them than inspire any sympathy.

Even if they do feel bad for you, it doesn’t mean they are going to do anything differently in dealing with your debt.

Some of the most important debt settlement tips to remember are all about protecting you. Debt collectors are negotiators by trade, and will do whatever you as the other party are willing to let them.

The next step is becoming acquainted with your rights according to state and federal law. The more you know about how the law protects you, the less likely a debt collector will be aggressive and bend the law.

The Federal Trade Commission and National Consumer Law Center both publish brochures acquainting you with your rights, and your state attorney general can provide you with state-specific information.

Other ways to protect yourself involve keeping good records. If you can conduct all your negotiations in writing, that is best; but if you do need to negotiate over the phone, record the call, and let the collector know he is on tape.

Any offers or other settlement letters you send or receive should be saved, and you should try and get as many things in writing from the collector as possible.

This is especially a must with the payment agreement you eventually come to and any promises the collector makes about cleaning your credit report or indicating your debt is paid in full. It takes more time, but if you have everything in writing, you are immediately protected if your debt collector tries anything tricky.

The most fundamental of all debt settlement tips might just be this:

Don’t fear the collector!

Be clear and calm in your negotiations, and make sure the collector is clear on your interest in paying off your debt for less.

Also, prepare yourself with important debt informations you can use take the lead in negotiation process. So next time the debt collector calls, you can pick up the phone with confidence.

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