If you’re deeply in debt and are having financial troubles, collections calls are probably the bane of your existence. You dread that phone ringing every evening ñ usually during dinner, no less! Callers from some pesky companies may even be calling your friends, family members, and neighbors to get their hands on you. This can be embarrassing and frustrating. What you need in order to deal with collections callers is a plan. Here’s one that might work for you.
First off, you need to come up with a formula for paying off your debts as you can. First, you need to make sure your family is taken care of. This just means that you cover the absolute basics, such as food, utilities, shelter, and a car to get to work. Then, you do everything you can to start paying off your debts. There are a couple of different ways to go about doing this.
One way is to get on payment plans with all your creditors. Sometimes you can get lowered payments and interest over an extended period of time. Some creditors may even give you forbearance, especially if you’ve been good about paying your loans on time until you lost a job or whatnot. This is useful if you think you’ll get back on your feet soon.
Another option is to save up lump sums of money and to start offering those to your creditors. This is the way to go if you’ve been hit with high interest rates and lots of fees. Some people have to stop paying on credit cards on which they owe $5,000 only to find that they owe $15,000 after a few months of non-payment. This is completely ridiculous, and you shouldn’t stand for it.
Either plan you decide to take, you’ll have to reiterate it to collections callers each time they call. Calmly and firmly tell them that you don’t have money to pay them in full. Tell them that you want to negotiate a payment plan or that you want to make a lump sum payment. If you offer them a lump sum, make sure you name a specific number.
Eventually, most collections callers will cave to these options. Make sure, though, that you get either of these plans in writing, especially if the company takes the pay-off. That way, the debt will be gone forever, and you won’t have to worry about these people calling all the time again.