How to Handle Phone Calls from Debt Collectors

Receiving unsolicited phone calls from debt collectors can be intimidating--but it’s not the end of the world. If you are being contacted by debt collectors, then we highly recommend following these simple tips in order to keep yourself in the best possible position both financially and legally.

 

• Don’t make promises.  Debt collectors are calling you to pressure you: any agreement that you make should be made after careful consideration, and after taking the time to consult with your lawyer and with other people you trust. Never make a spur of the moment promise, as this can complicate your situation.
• Avoid “good faith” payments. One of the oldest tricks in the debt collector book is guilting debtors into making small “good faith” payments. This extends the statute of limitations for your debt, thus robbing you of one of your biggest bargaining chips!
• Don’t hide. It can be tempting to simply ignore calls from debtors, but this is a big mistake: it can lead them to call your employer or your relatives. (More about this later!)
• Keep a call log. Note the time of each call you receive, as well as the exact nature of the debt you are being contacted about.
• Don’t get angry. If your case goes to court, transcripts may come to light, and any outburst on your part will only make you look bad and hurt your case.
• Tell your collector if you believe that the debt is not valid. If you do, they are legally obligated to prove the debt’s validity before contacting you again. If you are right, the odds are good that they will simply give up and focus on more productive cases.
• Tell the collector not to contact 3rd parties. They are obligated to listen to you, and this can save you a great deal of personal and/or professional embarrassment. If you’d like, you can even request that you not be contacted anymore--although this may make it more difficult to keep track of your debt.

 

If debt has taken over your life, you don’t need to suffer. Contact Madison Monroe and Associates today to retake control. (877) 346-2797 or visit our website www.madisonandmonroe.com

 

Reducing Credit Card Debt

Reducing and eventually paying off credit card debt is a challenging goal, but as anyone who has gone through the process will tell you, the freedom and peace of mind that come with regaining financial control are completely worth it. In this article, we will cover a few of the most important steps that you should take if you are serious about reducing credit card debt, as well as a brief overview of how services such as those offered here at Madison Monroe and Associates can help you achieve your goals.

 

• Assess your situation. The first step you need to take is to find out exactly how much debt you have. A great deal of people who are in serious debt do not know their exact situation, oftentimes because by this point they are already dealing with several credit cards and perhaps several other forms of debt as well. As with many problems, however, the first step toward recovery is a bit of brutal honesty--so sit down with your computer and your bills and figure out how much you owe, and what the interest on each loan is.
• Negotiate a lower rate. Depending on factors such as your credit and the lending philosophy of your creditors, you may be able to negotiate a lower rate on your debt simply by calling your credit card company, explaining your situation, and asking for a reduced rate.
• Track costs. If you have found yourself in debt, it is almost certainly due to the fact that you are spending more than you are making. (Though sudden and unforeseen one time expenses such as medical bills do oftentimes play a role as well.) Take stock of your expenses and make an effort to reduce spending.
• Develop a strategy. The fastest path out of debt is to make the minimum payment on all credit cards except for the card with the highest debt, and to put the remainder of what you can pay into that card.
• Avoid using plastic. Store your credit cards away and don’t use them except in case of a sincere emergency!
• Track your progress and stay motivated! Don’t dwell on your debt, but seeing your progress every once in awhile can be a real confidence booster!
• Consider 3rd party help. A 3rd party debt reduction service such as Madison Monroe and Associates can help you by negotiating lower rates (oftentimes from a stronger position that an individual could) and consolidating your debt into a single, lower payment. We can also help you get on the path toward rebuilding your credit!

Getting out of debt is still possible

According to a study published by the Pew Charitable Trust, roughly 80% of Americans now find themselves in debt. This debt can be piled on in a plethora of ways. For example, the majority of Americans own credit cards--and falling behind on payments can cause debt to pile up surprisingly fast. Mortgages represent another form of debt that, for the vast majority of working and middle class people, is going to be necessary in order to own a home. Student loans, medical bills, and back taxes can also pile up very quickly, and sometimes this can happen completely unexpectedly. (For example when an unexpected illness forces a hospital stay, or when that job you were planning on beginning upon graduation doesn’t pan out right away.) The point is if you have found yourself in debt, you are not alone!

 

The truth is a healthy level of debt can even be a good thing. Think back to the examples of mortgages and student loans: both of these types of debts can actually enable people to attain dreams such as owning a home or completing college that may have been out of reach without outside funding. So debt in itself can be a valuable tool. (This is precisely why credit is so important.) The problem, of course, is when debt reaches a point where you are struggling to make payments.

 

Once this happens, getting out of debt can seem impossible--and your financial life can become very discouraging. All of your disposable income (and then some) may begin going toward making payments that you still struggle to pay. Debt collectors may begin contacting you and your credit may become so damaged that many financial options that were previously available to you (i.e. getting a credit card, taking out a student loan, etc.) become infeasible. The situation can begin to feel hopeless.

 

We’re here to tell you that hope is not lost. At Madison Monroe and Associates, we have helped countless people reduce their debt by 40 to 60%--and we can do the same for you. Visit us online today to learn more. www.madisonandmonroe.com