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

---

Individual Voluntary Arrangements- A New Alternative to Bankruptcy

This May, the Department of Trade and Industry in the... Read More

Fast Track Out of Debt

You go to the mail box and scan - a... Read More

Bankruptcy: What the New Law Means to You

On April 20 of this year, President Bush signed a... Read More

Is My Credit Card Debt A Problem?

For most Americans, credit card debt is a dangerous and... Read More

Turning Bad Debts into Good Debts through Investing Fundamentals

If you've ever earned enough money to put some aside,... Read More

Start Small and Your Wealth Will Get Bigger

We've all heard the phrase, "You have to start somewhere."... Read More

Why You Should Get Out of Debt Today?

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

How To Avoid Medical Collections

With medical collections costing doctors millions upon millions of dollars... Read More

Bankruptcy Reform

There are some new bankruptcy laws going into effect before... Read More

Budgeting and Debt Management

Debt management (specifically unsecured) is the first step to taking... Read More

Worried About Debts?

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

How Do You Spell Debt Relief?

Of all the problems possible in a marriage, finances cause... Read More

Bankruptcy Interest Increases as Deadline Approaches

Congress recently passed sweeping legislation that will significantly reform American... Read More

Budget the Luxuries First!

Strictly speaking, his advice was preceded by another Heinlein maxim... Read More

The 5 Secrets to Getting Out of Debt Fast

As they stare down at a teetering pile of bills,... Read More

Solutions to Single Mothers in Debt

As a single mother, lets admit it, times get tough.... Read More

Credit Card Debt Elimination

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

Debt Settlement

What is debt settlement?Debt Settlement is a process to settle... Read More

Life After Bankruptcy

Bankruptcy and Credit - What Happens After Your Debts Are... Read More

Credit Card Debt & the Unfairness of the Universal Default Clause

Let's look at a real world example: A woman purchased... Read More

4 Simple Ways to Solve Your Debt Burden

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

What Is A FICO Score?

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

The Road to Debt Relief

Living with debt is not something someone hopes for, but... Read More

Debt Handling Solutions

Sometimes debt can seem overwhelming. In those instances, or even... Read More

Debt is The Master of Souls

Wholeness requires separation. In order for you to experience yourself... Read More