You’re in debt and the phone keeps ringing.  You don’t want to answer simply because you already know who it is.  It’s those pesky debt collectors and while you think it’s best to ignore these people, it’s probably going to hurt you in the long run.  I’m going to give you some tips on how you can deal with debt collectors.

Do you owe the debt?  If you’re being harassed by a company that is saying you owe but you don’t.  You can file a “cease communications” letter that will legally force them to stop communications with you.  Every day, hundreds of people are being harassed by companies that shouldn’t be.  The lesson learned here is to make sure that you owe that debt!

Look at the statue of limitations – Depending on your state and your laws, your debt may be out of the statue of limitations.  What does this means for you?  The debt collectors can’t do anything about it anymore.  This also means that they will have to legally stop before they get into trouble.  Make sure you point this out if you do find out that your debt is outside of the statue of limitation laws.

Work something out- If this is your debt and you can’t pay it, don’t ignore it.  Simply talk to them and explain your situation.  Tell them everything you’re doing to pay it off.  Since you owe the debt, it’s best that you pay them off.  Most of the times the companies will be nice enough to work out some sort of plan.  They’d much rather have $1 than nothing at all.

Never give out checking / savings info – Never let the collectors have access to your checking account, this is going to be a nightmare!  They will not only take out what they need, they will attempt to take everything you owe.  It’s always best that you pay by a certified cashiers check to ensure your savings is safe.

Report the abuse – If the collector on the phone is abusive or threatens you with anything, report him to his company.  If he fails to give you a supervisor name, I would highly advise that you consult with a consumer law attorney.  This attorney will be able to help you sue the creditor for abusing laws.

Dealing with debt collectors isn’t hard.  The best thing to do is normally negotiate with them and tell them that you plan on paying your debts off.  If they sincerely think you have a plan, they will do their best not to bug you.  Tell them you don’t want to be bothered and if they do, they won’t get their money, it’s that simple.