In the present financial climate, debt collection is
commonplace and many people may have to deal with debt
collectors due to delinquencies. To deal with creditors is
an art.
If you are among one of them, you may think that debt
collectors are inhuman: they may have harassed you
relentlessly.
Nowadays, many individuals have become debt collectors
simply because they need a job, because they want to help
others, or, for some, because they have a strong need for
control and power. Whatever, debt collectors get trained,
but do not go to school to become debt collectors.
Remember, debt collectors are just human, like everyone
else. They, too, may have problems paying their own bills.
Understanding the human side of a debt collector may help
you deal with one successfully. You must understand that
their work environment is always filled with negativity.
They need to call you incessantly and relentlessly: they
would like to see as many as possible their clients become
current. Like most other types of work, they have their own
daily, weekly, and monthly goals to meet too.
As a smart consumer, learn how to deal with a debt
collector. Dealing with debt collection is less of a hassle
if you have the know-how.
According to Sun Tsu's famous book "Art of War", "Know the
enemy and know yourself; in a hundred battles you will
never be in peril. When you are ignorant of the enemy, but
know yourself, your chances of winning or losing are equal.
If ignorant both of your enemy and yourself, you are
certain in every battle to be in peril."
So know your debt collector (your imaginary "enemy") and
know yourself, and you will resolve your financial problems
successfully.
As a smart consumer, it is important to make your account
current. It is to your own advantage if you do. Ignoring
your debt or delinquency problem - what most consumers
choose to do - will not make the problem go away. Make your
account current through a plan (knowing yourself, such as
how much payment you can afford, and what to do with your
current emergency debt situation) and good communication
with your debt collector (knowing your "enemy", such as
making the debt collector help you resolve your financial
problems).
Knowing yourself also implies adopting a positive and
confident attitude before and when you make your initial
contact with your debt collector. Remember, you are not a
bad person just because you cannot pay your bills. When you
put down your name on the dotted line to obtain a credit or
loan, you probably did it with good intention. When you are
having a financial problem, take care of yourself first and
foremost. Do things that may lift up your spirit - things
that do not require further straining your finances, such
as going camping or fishing (but certainly not going on an
expensive vacation).
Be open-minded; avoid being neither defensive nor
aggressive when you contact your debt collector. Remember,
he or she is human, just like you. An attitude is never a
good communication skill, and will not get you anywhere.
Rest assured, your debt collector knows your name and
address, your home and work phone numbers, the amount of
loan, whether it is secured or unsecured, your payment
history, your late payments, and your last payment date and
amount. Your debt collector has everything in front of his
or her computer when speaking to you. Therefore, you must
have the same level of information, otherwise you might
feel being intimidated while speaking to a debt collector.
That is to say, you must also be as prepared as your debt
collector to stay in the same level of information.
As a smart consumer, always request a copy of the payment
history and a copy of your contract for the delinquent
account (if you have not already done so), and have them
mailed to you. This may not only buy you more time, but
also show your intention to resolve the problem. To protect
yourself, you must read your contract in its entirety and
review your account payment history. If errors occur, use
them to your advantage.
Review your state's laws regarding collections and the
federal Fair Debt Collection Practices Act (FDCPA) to know
your rights as a consumer. Know what a debt collector can
and cannot do. If you do not wish your debt collector to
call you at work, fax a request to that effect. A debt
collector cannot disclose your debt information on a
telephone answering machine without your prior permission,
or by mailing you a postcard.
If you are knowledgeable of the law and your rights, your
debt collector will know that he or she cannot intimidate
you.
(Part Two will be on the communication with a debt
collector.)
----------------------------------------------------
Stephen Lau is a researcher, writing medical research for
doctors and scientists. His publications include "NO
MIRACLE CURES" a book on healing and wellness. He has also
created several websites on health, golf, Zen living,
mental depression, and money management, including the
following:
http://www.longevityforyou.com
http://www.smartcreditsmartmoney.com
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