Today's post is about Debt Collectors...BOO!!! We all will encounter them at some time in our life so here are a few tips about those very nasty, little buggers that won't leave you alone. I found these facts on an article on my yahoo page and read through it. For those of you who don't have yahoo or haven't seen the article...here are some of them. This is kind of lengthy but worth reading!!! I do not in anyway encourage anyone to not pay their debt, or attempt to take care of your financial well being. These tips are intended to put you back into control over your debt instead of the debt collectors!!!
1. They are taught that all debtors are "compulsive liars" and then trained to ask you to borrow the money from a friend, a relative, or your 401k. That is just bad advice!!! But it's not their job to give good advice...so I am here to tell you...TELL THEM NO!! Be the compulsive liar they think you are!!! (see sometimes lying is a good thing) actually you can tell them that is really not their business and that would be the truth. You can also tell them you will look into that and call them back but do not offer any information!
2. The more money they collect the bigger their paychecks are. So remember that when they don't get that payment from you today they will for sure try again tomorrow. I'll tell you how to get away from the phone calls in a minute.
3. These people do have the amazing power to reduce your debt amount on credit cards sometimes as much as 15-35%...but that means you have to have the full amount ready and on hand to pay right then and there. The offer goes off the table once you tell them you can't pay it all right now...but (see #4)
4. These companies pay pennies on the dollar on your debt when they buy them from the business you owe the money to...so you do have some bargaining power yourself...start at .25 cents on the dollar offer and if they don't accept it then ask them what they will accept. And bargain again!!!! Don't be afraid and calculate it out before you call them back...cause you will call them back!! Right???
5. These folks that call you have a "heard it all" attitude because they have. They consider what you are telling them (your story) a "HLS" hard luck story. So, they roll their eyes, which you can't see or hear, they act sympathetic and they write down everything you are saying that might link you to a source of income, or resource, or future contact!!! So, don't tell them "Your Story". Keep to the facts. And when they venture from the facts simply say "I didn't call you to talk about ______. I'm here to talk about money."
6. If they say they need to get a manager on the line...it usually isn't a manager. It's just another collector who is helping out his buddy in the next cubicle!! So, don't open up your wallet because they say the magic word "manager". And don't ask for one...chances are they don't exist. Actually they do exist to a degree but I can bet you they aren't in the office at the dinner hour when these people are calling you.
7. Did you know there is a statute of limitations on debt??? In Oregon the statute of limitation on credit card debt is 6 years from the opening date of the debt statute 12.08. You can go to http://www.creditcards.com and up at the top is the little search box and type in statute of limitations. It will give you all 50 states and you can go from there to find out..NOW...they cannot sue you or put it on your credit report if it is beyond the limitation...HOWEVER...if you make a payment in any way to the debt collection agency the opening date begins again, AND/OR if you acknowledge the debt the clock starts over!!!
I always send my payments directly to the source of the debt...not the collection agency!!! After six years they can't put it on my report!!!
8. If you settle into a payment plan...they will seem either very excited for you or very bored with you and this is to put you at ease so you start talking...giving them that information that they seek. They can only get it from your mouth, so keep it shut! Speak only about the money. Believe me they are asking about your Uncle Tom up north that you mentioned earlier and what they are trying to find out is have you lived in another state?, what is your stream of travel in the U.S., and who can they call and harass later if you don't come through with your obligated payment plan you just settled for.
9. They can call you at work, at home, on your cell phone, at your moms etc...HOWEVER...they cannot call you again at any number if you specifically say "please do not call me at this number regarding this issue again". You may have to say it five times (once for each number they call) but if you are paying your debt to the original agency then they have no need to be calling you.
10. Debt collectors collected over 8 billion dollars last year...that money went back into the economy so they are doing this country a service. Please don't be rude to them. They are just doing their job (as much as it must suck, although the pay is enormous) just talk about money if you must talk to them, or politely decline the conversation and ask them not to call this number again.
The first step to taking on debt collectors is to get your credit report!!! Next post will be about those credit reports and how to fix them up a little!!! Keep your chin up, your mouth closed, and your fists tight and together we can keep those debt collectors at bay!!!
TTFN
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