How To Handle Debt Collectors When You’re Broke

Most experts advise people who are struggling with debt and dodging bill collectors to make the first move to contact their creditors directly. Consumers are encouraged to offer either a lump-sum payment if possible or to schedule a payment plan that is more suitable to your needs.

However, there are a lot of people who can not even pretend to offer some kind of payback arrangements due to serious financial issues they are experiencing due to unemployment, injury, illness, or divorce. What should people who are in these situations do to handle credit collector calls? Everyone knows the calls will keep coming in and become more aggressive if no action is taken on the part of the debtors. Handling them is something you’ll need to do eventually so here are some things to consider if you feel you are stuck between a rock and a hard place.

What To Do

• Handling debt collector calls may not be your first priority if you are still trying to sort through your personal life or seeking viable employment. Focus on what you can do to improve your situation but don’t put debt collector agents off for too long. Try putting some kind of plan together so when you are ready to make the calls stop, you’ll have information to provide about your situation.

• Pay your essential bills with what money you have coming. It is important for you to keep your electricity and essentials in working order while you are trying to improve your situation.

• When you speak to a debt agent, remember that you may get more bees with honey than you will by telling them off. Remain calm, polite, and professional even if they lose their cool. Should the conversation get out of hand or if you feel like you are being insulted or threatened, hang up.

• Speak with a supervisor at the debt collection agency. Sometimes representatives that call you daily do not have the authority to cut you any slack. Tell the truth about your situation as in “I have lost my job and I do not enough income to pay my mortgage/rent and my overdue bills at this time.’ Mention that you are looking to find a new position and will then be able to make payment arrangements. Whatever your situation is, it may be possible there is a protocol in place at the debt agency to deal with extreme financial problems.

• After making the initial contact if the calls don’t stop, start screening your calls. You can write a letter to tell the debt company to no longer contact you by phone. In some cases, debt collectors will then employ a lawyer to send you legal correspondence. If you manage to secure a job before that happens, you can then call back and arrange payment based on what you can afford.

• If your financial dire straits are due to a job loss, keep in mind that some employers will perform credit checks on potential employees. You may have to devise a statement that explains to employers why your credit situation is less than stellar to prevent losing out on jobs.

• If you do not see a light at the end of the tunnel, bankruptcy may be your last option for getting out from under debt. Be cautioned that bankruptcy is not an eraser of debt. It has its consequences and is not a guarantee that you will be able to be relieved of all debt. There is a lot of work involved in filing for bankruptcy these days so you may want to first contact a debt counseling service for advice before taking such a drastic step.