Five Steps to Deal with Debt Collectors

Do you receive phone calls from debt collectors? As embarrassing as it may sound, you should know that you are not alone in this. There are many people around the world who are facing the same problem. Living with debt not only affects your chances of getting a loan, but it also affects your insurance premiums and reduces your chances of getting a job, or a job promotion. To get help with debt collectors, here are things you can do:

help with debt collectors

Know what you can afford to pay

That is either a monthly payment or a lump sum to settle your debt.  After all, you can’t sign up for a plan that you cannot afford. Also, you do not want to estimate your expenses. Instead, check your credit card and your bank statements and organize your expenses on a worksheet. Once you know exactly where your finances go, it becomes easy to reduce some of the expenses. The result is the amount of money that you can afford to pay towards your debt every month.

Know the amount that you owe

For every debt that you have, find out the interest rate, the balance, the minimum payment and the period it has been delinquent. You can prepare a worksheet to record all the details. If you notice any form of inaccuracy, raise a complaint with the credit bureau so that it is eliminated.

Focus on the latest debt first

There are a number of reasons for this. Firstly, an older debt does not affect your credit much. Secondly, depending on where you live and how long your debt has delayed, the possibility of them suing you is very minimal. Lastly, most debt will eventually be wiped out from your credit card report, seven years from the date of delinquency.

Negotiate an affordable payment plan

Another important step of getting help with debt collectors is to have a realistic payment plan that will help you pay your debt. Once you know what you can manage to pay and you know which debt to clear first, talk to the debt collector and negotiate a payment plan that you can afford.  Ensure that the payment plan doesn’t compromise your ability to pay for your mortgage, gas, food, rent and lights. Also, do not mention any of your old debt to the debt collectors because this may restart the statute of limitations. Read more at Debt Mediators

Work with a credit counseling agency

You can hire a credit counseling agency to get help with debt collectors. A credit counseling agency will negotiate for a better payment plan on your behalf. Note that a credit counseling agency is not a debt settlement company. Since debt can be emotionally involving, it is advisable to hire a counseling firm that is within your locale. Look for an agency that will not only guide you on how to deal with debt collectors, but also offers emotional counseling.

To get debt collectors help, you need to hire a reputable company such as Debt Mediators Australia. Debt Mediators Australia can help with debt collectors. To know more about this company visit https://www.debtmediators.com.au/debt-articles/how-to-deal-with-debt-collectors/

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