When an international debt collection service agency is contacting you, it can be quite unnerving. But you have to stop panicking, and start thinking with a clear mind. If you do owe a certain debt, you need to start figuring out how you will pay the debt. Also, you need to figure out how you can negotiate with the debt collector to give you more time to pay the amount or negotiate the amount itself.
Sometimes, you can negotiate the amount, and the time with the creditor itself, if a third-party collector is not involved yet. Anyhow, you do need to pay the debt otherwise; you can face serious consequences, like a lawsuit or decrease in your credit score or both.
Here are some steps to keep in mind, while trying to come up with payment options for the debt.
First step: Debt verification
Don’t owe the debt or start making payments before you verify that the specific debt, for which the collector has contacted you, actually belongs to you. Also, verify the debt collection agency and its legitimacy, whether the debt is within the statute of limitations or not, and so on.
You can ask the process of verification, which is usually simple, like sending a written request to the creditor. Once they verify your debt, you can figure out a payment plan.
Second step: Make a budget which can help you determine what you can pay
Now that you know that the debt is yours, you have to come up with a plan to repay the debt. For that asses all your finances, and determine how much you can pay at the given time. If it is the full amount, it is great. Otherwise, you should ask for more time or some installment plans.
Also, you have to start cutting your expenses, so that you can pay the debt by making a budget. It can help you pay for the debt, and can also help you save money for emergencies.
Third step: Get to know your rights
As a debtor, you should know your rights. A collector won’t abuse you or threaten you, but you still should be aware. Here are some important laws that you should keep in mind:
A collector has to give a written letter with details like debt amount, creditor’s name, a debtor’s right to dispute the debt, and so on.
1. They don’t have the right to harass or abuse you.
2. They can call you at work, but if you ask them not to, they have to oblige.
3. A collector cannot disclose about your debt to anyone except your attorney or spouse.
Fourth step: Negotiation
You can draft an application explaining your current situation and they have to consider it. Make sure your proposal is balanced so that they cannot refuse it.
1. Start with a lower amount than what you can actually pay, and lead from that.
2. After you both agree, get it in writing.
3. Also, you can ask the collector to provide you with a payment plan if negotiation doesn’t work. In this, you pay some amount every month, till the debt is paid fully.
Last step: Payment
You can pay a certified check in the name of the creditor or cash. Make sure you document everything.
Knowing all this can help you pay your debt on time.
Sometimes, you can negotiate the amount, and the time with the creditor itself, if a third-party collector is not involved yet. Anyhow, you do need to pay the debt otherwise; you can face serious consequences, like a lawsuit or decrease in your credit score or both.
Here are some steps to keep in mind, while trying to come up with payment options for the debt.
First step: Debt verification
Don’t owe the debt or start making payments before you verify that the specific debt, for which the collector has contacted you, actually belongs to you. Also, verify the debt collection agency and its legitimacy, whether the debt is within the statute of limitations or not, and so on.
You can ask the process of verification, which is usually simple, like sending a written request to the creditor. Once they verify your debt, you can figure out a payment plan.
Second step: Make a budget which can help you determine what you can pay
Now that you know that the debt is yours, you have to come up with a plan to repay the debt. For that asses all your finances, and determine how much you can pay at the given time. If it is the full amount, it is great. Otherwise, you should ask for more time or some installment plans.
Also, you have to start cutting your expenses, so that you can pay the debt by making a budget. It can help you pay for the debt, and can also help you save money for emergencies.
Third step: Get to know your rights
As a debtor, you should know your rights. A collector won’t abuse you or threaten you, but you still should be aware. Here are some important laws that you should keep in mind:
A collector has to give a written letter with details like debt amount, creditor’s name, a debtor’s right to dispute the debt, and so on.
1. They don’t have the right to harass or abuse you.
2. They can call you at work, but if you ask them not to, they have to oblige.
3. A collector cannot disclose about your debt to anyone except your attorney or spouse.
Fourth step: Negotiation
You can draft an application explaining your current situation and they have to consider it. Make sure your proposal is balanced so that they cannot refuse it.
1. Start with a lower amount than what you can actually pay, and lead from that.
2. After you both agree, get it in writing.
3. Also, you can ask the collector to provide you with a payment plan if negotiation doesn’t work. In this, you pay some amount every month, till the debt is paid fully.
Last step: Payment
You can pay a certified check in the name of the creditor or cash. Make sure you document everything.
Knowing all this can help you pay your debt on time.
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