If you have acquired a personal loan (secured or unsecured), one thing that may cause you some anxiety is the fright of facing the wrath of debt collectors – no matter how superb you’re at paying back the installments. Bad times don’t warn their arrival, so it is well advised to get a knack of how to deal with debt collectors in the event that you may require to face them from a weaker position.
Negotiate to reach a compromise
Being aggressive does not work all the time, negotiation does. Debt collector may come hard on you, but you can be confident that there is a strong chance of making some sort of compromise, not only by them, but by you as well. Ask for an extension on repaying the loan in exchange for increasing the interest rate by just a tad bit. If you know the lender in person, there are far more chances to get the trick done.
Practice your rights
Debt collectors may have the power to collect the due amount, but by no means they are allowed to ‘bully’ you. If you feel that you are being overly threatened for the collection, or if any of your family members is being harassed – you just need to contact the police station. It would be great if you can actually have some substantial proof. Record the phone call whereby the debt collector would be threatening you, or save the SMS sent by him where you are being severely harassed. You should know that the law is on your side and you are allowed under the law to prevent them from harassing you or in many instances even calling you. Therefore, don’t be shy when you come across an abusive collector and practice your rights. Also make sure that debt collector is not being overly strict in terms of collection and with regards to payments or ease of time span. Go through the documents and all the agreements to find out what is only required and fulfill the requirements and nothing more.
Proof of payment
Remember to practice cautions to protect you when dealing with the debtors. You don’t need to put yourself on the line or go overboard with making payments that cannot be traced or tracked. Make sure that you pay via those means that provides you a straightforward evidence of payment. Bank transfers are usually not recommended as the paying proof is not as satisfactory as that from MoneyGram, WesternUnion etc.
Watch for Fraudulent Collectors
There have been a few reports that certain debt collectors practice unfair means to get the debt payment. In some cases the unfair practice involved the amount that was collected or even collecting the debt you do not owe such as the debt that has been expired according to the statute of limitation. Some collectors buy expired debt and then try to collect on the debt with high interest. Therefore, it is important to keep all your records and be on your guard when dealing with these individuals.
In conclusion if you take concrete steps and proper planning you can effectively deal and negotiate with collectors to reach a desirable compromise. Continual organization and planning is the only way to eventually eliminate your debt or bring it under control.