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Step 1
Ask the debt collector to provide proof that you owe the debt. Oftentimes, creditors will write off a debt, and then hire a debt collection agency to collect an old debt. There is a statue of limitation for old debts. Once an old debt is beyond the limitation for your state, creditors cannot sue you for the money. If you believe a creditor is attempting to collect an old debt, ask them to provide proof of the debt. By law, they have to respond within 30 days. If they're unable to provide proof, they have to stop all collection attempts.
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Step 2
Agree to a payment plan. If you can't pay off the debt in full, ask the debt collector to consider a payment plan. Agree to pay a certain amount each week or month. This agreement satisfies debt collectors, and they'll stop all phone calls and letters.
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Step 3
Negotiate a debt settlement. If you don't have the funds to pay off a debt, but you want to get rid of a debt quickly, contact the debt collector and inquire about a debt settlement. You agree to pay a percentage of the debt in a one-time lump sum, and the debt collector agrees to stop all collection attempts. Because debt collectors would rather have something than nothing, they're usually open to negotiations.
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Step 4
Alter the loan terms. Ask the debt collector to lower your interest rate, extend your loan term or adjust your monthly payments. These maneuvers can lower your payment obligation and allow you to afford the payment.
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Step 5
Request deletion of negative remarks from your credit report. Once you've agreed to an arrangement with a debt collector and you've paid off the old debt, ask the debt collector to remove negative items from your personal credit file. Because you put forth effort to satisfy the debt, they may approve your request. Removing negative items increases your credit score.
