How To Deal With Debt Collectors

Are debt collectors harassing you day and night with phone calls and letters? The embarrassment of having a debt collector call you at work or while you’re just trying to enjoy time with friends is something no one wants to ever go through. 

If you feel like there’s nothing you can do, remain hopeful because there are options for putting an end to debt collector calls and attempts to garnish your wages.

To start with, let’s go over a few of the ways you can deal with debt collectors to prevent credit damage, bank levies, and wage garnishments and remain in complete control of your financial future.

6 Steps For Dealing With Debt Collectors:

  • For starters, don’t just totally ignore debt collectors because they won’t go away on their own. Debt collectors will exhaust every possibility for collecting on the debt, including possibly seeking a judgment that could grant them the ability to levy your bank account or garnish your wages.
  • Obtain as much information about the debt as possible, including who the original creditor was, what the original unpaid debt amount was, and when the debt was sold to a collection agency or when the credit card went into default.
  • Debt collectors are legally required by the Fair Credit Reporting Act to provide you the details of the debt in writing, so hold them to this requirement, don’t simply accept their claims.
  • Never provide personal details over the phone. Keep everything in writing, so you have as much evidence as possible in your favor in case the collection agency tries to take legal action against you.
  • If the collection agency has a valid debt claim against you, there is a strong chance you can get debt relief by settling the debt for less than the amount they say you owe them. Remember, debt collectors buy these debts at deep discounts, so there’s room for negotiation.
  • Seek the help of a debt settlement assistance company like Alleviate Financial to deal with debt collectors for you. They have professional debt negotiators who talk to debt collectors on a daily basis, so knowing the right thing to say for the best settlement offer is their specialty.

What Should You Say To A Debt Collector To Buy Time?

If a debt collector is continuously contacting you, is there something you can say to buy time to get help with debt and keep it off your credit report?

The first thing to keep in mind is to never talk about the details of your collection debt over the phone with debt collectors. They are professionals at what they do, and their job is to always be trying to get you to pay the debt sooner, whether or not it’s in your best financial interest.

In the event you do find yourself on the phone with a debt collector, the best thing to say is for them to send you the details about the debt in writing. You have a legal right for debt collectors to send you their claims in writing, so you should exercise this right to the fullest extent. Doing so can buy you time to seek legal help or debt assistance from a company like Alleviate Financial, along with ensuring the debt is valid.

You can also tell the debt collector that you prefer to pay the original creditor for the debt and ask for their address to send a cease and desist letter. Sending this letter can put a stop to their collection activities, but it won’t technically cancel the debt, so it could still hurt your credit if left unresolved.

How Can I Get Out Of Dealing With Debt Collectors?

One way to not deal with debt collectors is to contact the original creditor and try to settle the debt with them instead. When a credit card, medical bill, or personal loan goes into default, there are tons of fees and interest charges that can get heaped onto the principal balance, inflating the debt far beyond the credit you actually used.

This inflated debt balance gets passed onto collection agencies, but they only pay a fraction of it when they buy the debt. Because of these facts, it’s more likely you’ll get a better financial outcome from dealing with the original creditors, as they’re not trying to profit from the collection—they just want to be paid something to get the debt off their books. 

If you have credit cards that are past due and at risk of being sent to collections, credit card debt relief could prevent this from happening and help minimize long-term damage to your credit.

What Is The Minimum Amount That A Collection Agency Will Sue For?

When dealing with debt collectors, a major concern is the looming threat of being sued by them for not paying the debt. So, what amount of debt does it usually take for a collection agency to seek legal action against you to collect the debt?

While debt collection agencies often have a legal right to seek court action against debtors, it’s unlikely they’ll do so if the debt is less than $1,000. If your debt is above this amount, getting debt help from Alleviate Financial can help prevent lawsuits from debt collectors. Reach out to our team today for a free consultation.

Can Debt Collectors Find Out How Much You Have in the Bank?

If a debt collector has both your social security number and bank account number, they may be able to access your bank account information via the bank’s automated phone system. So keep in mind, if you have higher-priority bills to pay with the hard-earned money in your bank account, ignoring debt collectors could put those funds at risk.

Can I Get Assistance In Dealing With Debt Collectors?

The good news is, you can get help from a debt relief company if a debt collector won’t stop nagging you about your unpaid debts. Alleviate Financial has seasoned experts ready to negotiate on your behalf with creditors to settle your debts and put an end to them contacting you night and day. Call our team today for a free consultation about your credit card or collection debt and get on the path to a brighter financial future free of harassing collection calls.