How to Deal With Bill Collectors

Just because you have lost your job or income doesn't mean the bills wont stop coming in. You are already dealing with enough stress and don't need harassing calls from bill collectors. This article will help you deal with them in an honest and legal way.

Difficulty: Moderately Easy

Instructions

Things You'll Need:

• Account information such as account numbers, phone numbers and addresses for creditors.

1. If you are not late on any payments but know you will be soon, call your credit card company before they call you. Let them know you are having financial difficulties and see what they can offer. It sounds too good to be true but in this economy-there are options.

2. If the creditor doesn't work with you, simply hang up the call and keep a log of the person you spoke to. It was worth the try.

3. Move on to your next creditor and follow the same pattern. If they decline to help you, keep record of it. If they do work with you and offer a lower percentage rate or waive a payment-ask them to send it to you in writing.

4. If for some reason, no creditors will work with you and the payment is now late. They will start calling. Bill collectors will call every phone number they can until they reach you. You can answer the calls but they will keep calling until they receive payment. That is their job.

5. If you can not deal with the creditors calling, send them a letter telling them they can no longer call you. This letter is called a "Cease and Desist" letter. Make sure to send this letter certified mail. Once they receive this letter, they must stop calling you. If they do call, you can take legal action against them.

6. Even though the creditors are unable to call you does not mean that you still do not owe money. The debt will stay there. If your situation is temporary, once you get back on your feet, pay the lender what is owed. After time, you may even be able to settle the debt for less that what is owed. If you can not deal with your debt, you may want to seek help in dealing with it. The letters will not stop coming. Eventually you may even be sued by a creditor so don't avoid the letters.

Tips & Warnings

• Keep a log of who you talk to at the credit card companies
• Do not make a deal with any creditor that you know you will not be able to keep

Resources

• Debt Consolidation Care

[Gardengates]

on 5/7/2009 I still find it incomprehensible that some businesses won't make the effort of working with people under financial stress since it's in their own interests. Good advice on handling the situation, though. Thanks.

[sonni57]

on 5/5/2009 Thanks for the good info on bill collectors it's sometimes hard to handle them if they're aggressive.

[pam910]

on 3/6/2009 I need this right now for sure ty:)

[Maranatha80]

on 2/23/2009 Very good info. I didn't know about the "cease and desist" order. 5 *'s