How To Negotiate With Debt Collectors
It can be very frustrating when you are being contacted by debt collectors. This can cause you to change your number, move or more.
This frustration will quickly be multiplied if the debt is not a valid debt. It is not uncommon for a lender mistake to cause your account to go to collections. Unfortunately explaining this situation to someone that has already paid money for your debt is not a recipe for success.
If you find yourself in this position you should request validation of the debt. This is done by writing a letter to the debt collector and requesting validation. I suggest you do this by certified mail so you have documentation that they received your letter.
Do not request validation over the phone because it is often ignored. In addition you only have 30 days to request validation of a debt once you are notified.
Furthermore it is becoming more and more common for debt collectors to just sell your account to another collection agency if you request validation. This will result in you getting calls from another debt collector.
Instead I suggest you hire a credit service to dispute the negative credit items that the debt collectors have posted on your credit report. This way you will prevent your score from being damaged due to a lender mistake.
However if the debt is valid then you should settle it. You should offer a settlement of 50% of the account balance.
This is because the collector has purchased your debt for a fraction of the balance. In addition even if the collector does not accept that offer, they will see that you are willing to pay this and will be willing to negotiate a price.
You will need to have the collector agree in writing that they will remove the negative item from your report in exchange for your payment. If this is not done then the item will change to a paid collection and it will still be seen as a negative mark on your credit by future lenders.
In sum I suggest you hire a credit repair service to repair your credit from debt collectors.
This frustration will quickly be multiplied if the debt is not a valid debt. It is not uncommon for a lender mistake to cause your account to go to collections. Unfortunately explaining this situation to someone that has already paid money for your debt is not a recipe for success.
If you find yourself in this position you should request validation of the debt. This is done by writing a letter to the debt collector and requesting validation. I suggest you do this by certified mail so you have documentation that they received your letter.
Do not request validation over the phone because it is often ignored. In addition you only have 30 days to request validation of a debt once you are notified.
Furthermore it is becoming more and more common for debt collectors to just sell your account to another collection agency if you request validation. This will result in you getting calls from another debt collector.
Instead I suggest you hire a credit service to dispute the negative credit items that the debt collectors have posted on your credit report. This way you will prevent your score from being damaged due to a lender mistake.
However if the debt is valid then you should settle it. You should offer a settlement of 50% of the account balance.
This is because the collector has purchased your debt for a fraction of the balance. In addition even if the collector does not accept that offer, they will see that you are willing to pay this and will be willing to negotiate a price.
You will need to have the collector agree in writing that they will remove the negative item from your report in exchange for your payment. If this is not done then the item will change to a paid collection and it will still be seen as a negative mark on your credit by future lenders.
In sum I suggest you hire a credit repair service to repair your credit from debt collectors.
About the Author:
For a review of Lexington Law a suggested credit repair service visit us, or to see an article about credit repair letters.
posted by Debt Consolidation Loan at
3:38 AM
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