Tips To Take Control Of Debt Collection

Yes, debt collection tips can help. You may think you have no power when the debt collector comes calling, but think again! Creditors don't like losing out on the ability to collect money owed them. And most creditors will take steps to settle an unsecured debt to collect some money as opposed to no money.

Tip 1 - Keep Communications Open

Once you have your Money Management Plan on paper, you will be able to professionally respond to requests for payment from creditors and debt collection agencies. They may ask you, or you can offer, to send them a copy of your Money Management Plan. This opens the communication between you, and they may even be able to offer suggestions to improve your plan. Keep in mind, however, they will offer suggestions based upon their best interests, you need to negotiate based upon what's best for you!

Tip 2 - Know Your Credit Report

Obtaining a copy of your online credit report, and learning how to use it in debt management, can help you when it comes to negotiating with your creditors.

Tip 3 - Negotiating With Creditors

You can request a monthly payment reduction, either a temporary extension, or permanent reduction. Keep in mind, this method can involve adding years to your payment plan, as well as some type of "deferral fee" charged by the creditor.

Ask if the interest rate, principal balance, or monthly payments can be reduced to permit you to continue to pay the debt on time. Ask for principal reduction first, then interest reduction. If these are not agreeable, then request monthly payment reduction.

If you ask for all 3, the creditor will take the one best for them first, which is monthly payment reduction, and you end up paying too much interest. Lower payments, without the other two will only mean you are adding years and years to the payoff time. No bargain there.

If you have access to some money to make a large payment on a debt, you may want to consider debt settlement on some or all of your debts.

On secured debts, you risk losing the asset if you don't keep your payments current. This includes your home, car, etc. These are priority debts to you, as well as priority debts if you decide to file bankruptcy.

Tip 4 - Do What's Best For You

Whether you are speaking with creditors directly, or to debt collection agency representatives, remember, be honest, and don't commit to payments you cannot make.

Tip 5 - Know Your Rights

The Fair Debt Collection Practice Act sets out exactly what creditors can, and cannot do, when talking with your about your debt. Don't be afraid, be informed!

http://www.debtsteps.com/fair-debt-collection-practice-act.html

Remember, being courteous and honest with creditors and debt collectors will go a long way in helping you to cope. No lies to remember, no self-induced stress, just honest communication to achieve your goals.

Debs is the editor of http://www.DebtSteps.com where you can get the answers you need about debt relief, consolidation, credit counseling and more. Subscribe to the free newsletter and discussion list at http://www.debtsteps.com/debt-help.html and get free money management worksheets in pdf and spreadsheet format. Get more information to get out of debt:

Compare the pros and cons of debt consolidation loans, service companies, and credit counseling. http://www.debtsteps.com/consolidate-debts.ht ml

Understanding how your credit score can affect your debt relief choice http://www.debtsteps.com/credit-score.html

Free Money Management Tutorials http://www.debtsteps.com/money-management.html

---

Debt Settlement -- Why the Critics Are Wrong

After October 17, 2005, a lot of people are going... Read More

Yes to Less Debt

Feeling stressed by the amount of debts you have? Three... Read More

How To Pay Credit Card Debt Off

If you are determined to pay credit card debt off... Read More

IVA Information

If you're thinking about an IVA, it is essential to... Read More

Credit Card Debt Elimination

Credit card debt elimination can be done with a good... Read More

Questions to Ask a Credit Counseling Service about Debt Relief

Debt relief is a topic on a lot of consumers'... Read More

How to Protect Yourself: Debt Collections

So you are getting collection calls? You're desk is full... Read More

5 Methods Toward Reducing Your Debt

Decreasing your debt is paramount to having a good credit... Read More

Reduce Your Debt With These 5 Tips

It's never pleasant to realize that you're in financial hot... Read More

Credit Repair - Understanding The Basics

What is Credit?Credit means that you are using someone else's... Read More

Pay Off Your Student Loans and Reduce Your Debts

Financing a college education is one of the more expensive... Read More

Bankruptcy 101

Bankruptcy still remains a mystery in the eyes of many... Read More

What Is A FICO Score?

Your FICO score or credit score as it's commonly called... Read More

How Do I Lower My Debt Burdens?

How do I lower my debts?There are several ways of... Read More

New Bankruptcy Legislation May Make it Harder to Find an Attorney

The recently passed Bankruptcy Abuse prevention and Consumer Protection Act... Read More

Are You Beating Up On Yourself About Debt?

When you hear the word "debt", whats the first thought... Read More

Debt Elimination 2

The First Step To Debt EliminationRegardless of your personal and... Read More

How to Get Triple A Credit in 25 Days

Good credit is everyone's dream. A wise use of credit... Read More

Is It Possible to Be Sued For My Debts?

It is possible for creditors and third-party collection agencies to... Read More

Why You Should Get Out of Debt Today?

The main reason for getting out of debt today, is... Read More

Getting Past The Idea Of Budgeting & Saving Money

I'm sure you'll agree that budgeting, saving money, and eliminating... Read More

Bankruptcy Your Best Bet?

Filing bankruptcy is a common practice among the U.S. Over... Read More

Life After Debt ? Strategies for Dealing with Problem Debt

Honorably and ethically rid yourself of burdensome debts using the... Read More

How to Choose a Debt Settlement Company

As consumer debt continues to spiral out of control, debt... Read More

Save Money When Going Out

It seems as though whenever we go out for the... Read More

Is There A Way Out Of Your Debt Problems?

Do you have multiple debts? Do you have just one... Read More

How to Get Money When You Are Broke

(Money You Don't Have to Pay Back) 1. One way... Read More

Worried About Debts?

Having trouble paying your bills? Getting dunning notices from creditors?... Read More

Your Secret Weapon... A Budget

For many, the word 'budget' immediately sends shivers down the... Read More

Bankruptcy: Which Chapter Do I File?

There is more than one kind of bankruptcy. You should... Read More

Bankruptcy Reform: Designed to Protect Big Business

Who will benefit from the new bankruptcy reform laws? The... Read More

Bankruptcy: What You Need to Know

Personal bankruptcy is a legal way to give people with... Read More

4 Simple Ways to Solve Your Debt Burden

Getting Behind Getting behind on your debts owed can be... Read More