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The Ultimate Action Plan to fend off Debt Collectors

When a debt reaches debt collectors, it means you can no longer work with the original creditor in many cases. Of course, that also means that several attempts were made with the original creditor to reach out to you about your debt and work on settling it, or there should have been. So always keep track of everything.

Regardless, it isn't doomsday when debt collectors come. Understanding their motivation and business model will help you build the best possible action plan. This will get yourself out of this situation as quickly as possible.

Make sure the debt is real

This is a big one as you don't want to get scammed. You want to ensure that the collectors are chasing after debt that makes sense to you. You should be able to receive proof of the debt from them in writing (should be by mail) no longer than around a week or so after initial contact with them. It needs to have all the details, from the initial debt owed to any fees that have been added.

Make sure you recognize the obligation itself; even if the creditor is a real company, make sure you had actual business with that company in the first place.

Negotiate immediately with debt collectors

Everyone has a different financial situation but if the debt is valid and you are not going to dispute it you want to ensure that you have set up a plan of action in place to pay it off. Work within the confines of your own personal financial limitations not what a debt collector may demand from you. Remember, you have rights, and harassment from a debt collector is the quickest way to a lawsuit against them.

Once you find the plan that makes the most sense to you head back and negotiate as much as possible. Make a deal with them on the fees, the monthly payments and even the amount you want to pay off if you can submit the amount due in one lump sum. When they hear you're willing to pay you'll quickly see how debt collectors become eager for a discussion.

Keep in mind that you should be committed to the plan you negotiate with. If you don't for any reason or cannot you need to be proactive. Get on top of the situation and work on re-negotiating. Debt collectors who you work with and pay off some of the debt partially will understand circumstances change. They will be willing to work with you instead of being that contention of stress.

Get your demands and plan in writing with debt collectors

Always get everything in writing, confirmed, and approved by debt collectors. Sometimes those debts could eventually be sold off to another collector, so having a track record and history is extremely important, so you're not always negotiating your already agreed-upon plan.

Having it in writing helps you keep your existing strategy and plan in place without any type of bullying or threats necessary.