One thing many people don't understand is that they have the advantage. Most consumers run from debt collectors. Just the mention of a collection agency strikes fear in the hearts of the masses.
But, you have something the collector wants. They are basically begging you to pay. So if you get the image of a beggar calling you to ask for money in your mind, the collection agent doesn't seem so intimidating. I certainly don't want to down play the seriousness of the situation. They do have recourse, and it can be dire. But the fact is that the process is slow.
You can get them to give you the deal you want. You have to be firm, professional and show some fortitude. They are always going to tell you no. Relax, take a deep breath.
I really want to encourage you to NEVER talk to a collector on the telephone. First, most people can collect their thoughts a little better in a letter. It gives you time to think and make rational, unemotional, unpressured decisions. Second, everything you do with the collection agency needs to be written. If you use the mail everything is documented and date stamped. They can't dispute it.
Most collection agencies pay literally a few cents on the dollar for old debt. Depending on the age, 1-7 cents may be average. On debts that are out of statute, they have paid one cent or less on the dollar.
Start your negotiation at 25% or less. If you owe $1000, offer $200 or $250. Many will accept quickly because they are making money can close out the account.
If the collection agency has added "fees", don't include them in the negotiated amount. Only negotiate on the original amount of the debt. Don't seem to eager. Don't volunteer any information. Never give them your bank account number, your employer or that inevitable "other number to contact you at". Oh yeah, and why are you talking to them on the phone?
Time is on your side. Be firm, and get the deal you want.
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