How to Talk to Debt Collectors

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How to Talk to Debt Collectors
Are you thinking about talking to your debt collectors? I highly recommend it. However, before you talk to them you need to formulate a plan ...

It is extremely important to prepare a strategy before talking to debt collectors. A debt collector's job is to collect as much of the balance as they can from you as quickly as possible. Their method to do this is to inquire about your assets and financial resources in an effort to discover your ability to pay so that you can resolve your account with them.

Unfortunately, this is generally done with no regard for your ability to pay your other delinquent creditors.

If you have multiple collection accounts, it is critical that you assess your ability to pay or settle ALL of your delinquent debts via your assets or other financial resources before engaging your debt collector with this information.

This way, you don't run the risk of squandering your resources by paying just some of your delinquent creditors when you may have been able to settle all of your delinquent accounts and solve your entire problem.

In this article I discuss how to plan for communicating with debt collectors by aligning your potential repayment options with your financial ability.

There is generally a reason why you fell behind on your debts. What is it? What was your situation like leading up to the point that you couldn't pay? Did you suffer a loss of income or an increase in expenses? Was it both?

What is your budget like right now? Do you earn less than what your monthly living expenses are? How much less? If you earn more than your monthly living expenses, do you earn less than your monthly living expenses when combined with your credit card payments?

How much do you owe in unsecured debt? What is your asset situation? What other possible financial resources do you have access to? What will your financial situation be like, after the fact, if you use these resources to resolve your debts? Will the end result be comfortable and sustainable? Will it eliminate your emergency fund? What is your goal?

The reason I pose these questions is because by answering them you will be able to formulate a plan to effectively communicate with debt collectors and be in a better position to achieve your goals.


Are you thinking about talking to your debt collectors? Before you talk to them you need to formulate a plan ...

It is extremely important to prepare a strategy before talking to debt collectors. A debt collector's job is to collect as much of the balance as they can from you as quickly as possible. What will your financial situation be like, after the fact, if you use these resources to resolve your debts?