Lots of negative emotions can drum up when you are hounded by collections calls. You may feel helpless in a never-ending cycle of debt. You may feel embarrassed because you feel like you should have made better choices. You may even feel like your image is being destroyed by the way collectors talk to you. You can lose sleep, experience mood swings, changes in appetite, headaches, and more. You may feel trapped in your financial situation and being reminded about it every five minutes by constant collections calls sure doesn’t help. So you cut your ringer off and you don’t answer the phone. But here’s the thing. Just because you do not answer your phone does not mean bill collectors will stop trying to contact you. It may be time to call a professional debt negotiator to get these people off your back, so you can get back on track.
If your accounts have gone into collections, making the minimum payment will not get you ahead. Most of your payment will go toward interest, and you will not be doing much to knock down your overall balance. You could be making minimum payments for 5 to 10 years before you even begin to make payments on your original loan or credit amount. At that rate, you could be in debt for decades. You are not alone. Millions and millions of people are in extreme debt. And guess what? Lenders, creditors, and collectors are all suffering because of it. There are so many people that are not paying their bills that creditors are willing to negotiate a settlement that can help you both.
Debt negotiation is a process where you reach a deal with your creditors for a reduced payback. Once they settle on an amount, you agree to make monthly payments on the settlement. When you have made your final payment, your account will be considered settled-in-full and paid off. You will not owe the rest of the balance. Many collection agencies are accepting as little as 40% of your outstanding balance as paid-in-full.
For example, say you have outstanding credit card debt of $5000 with a $350 minimum monthly payment. You could have that $5000 balance negotiated down to $2000, and agree to pay it off within 24 months. Instead having to pay a $350 monthly payment on your $5000 credit card balance, you agree to pay $83 per month for the next 24 months on your $2000 negotiated settlement. At the end of 24 months, your credit report will reflect that you have paid this debt.
You do not need a professional to begin discussions with your creditors, but the advantage to using one is that they have experience with situations like yours. They fight your creditors for you. They are your hired representation, handling the negotiation process and blocking the collections calls. Since they work directly with your creditors on your behalf, they eliminate the need for your creditors to call you. (If by chance your creditors do continue to call you, you should write them a letter stating that you have hired a professional debt negotiator and all phone calls should be directed to them. Include the name, telephone number, and address of your professional debt negotiator. You should also state that you do not wish to be contacted by phone and that they can only attempt to contact you by mail. Sign and date this letter and send it to them by certified mail. When the collection company acknowledges that they have received your letter, any future contact by phone is a violation of the law. They will stop calling you because they do not want to be sued.) When the phone calls stop and you are in control, you can live a much more peaceful existence.
If you are in need of debt counseling, the help of a professional can really make you feel like a weight has been lifted from your shoulders. Some debt negotiators even roll their fee into your monthly settlement payment, eliminating the need for you to pay them anything up front. In order to feel better, it may be time to call on a professional debt negotiator. We all need someone in our corner sometimes.