Did you know that the Consumer Financial Protection Bureau gets about 81,500 complaints about debt collections each year– and that 25% of consumers feel threatened by debt collectors?
If you lose your job, encounter unexpected expenses, or are down on your luck, it’s not hard to fall into a financial hole. According to Bankrate, almost one in three people had some emergency savings tucked away in 2023, but it wasn’t sufficient to cover three month’s worth of expenses. Meanwhile, only 22%, or approximately one in four, adults in the U.S. said they didn’t have emergency savings at all. So, it’s easy to see how people can get into trouble.
If you ever fall behind on bills and get hounded by bill collectors, here’s what to do.
Don’t Simply Ignore the Bill Collectors
While it can be annoying to face repeated calls from debt collectors — especially if you lack the means to repay at the moment — ignoring them isn’t an appropriate response. Your credit score could plummet to eye-watering levels if you ignore — rather than engage with — bill collectors.
So, it’s best to engage with debt collectors — but do so properly so you don’t make matters worse.
Listen More Than You Talk
When picking up the phone and talking to a bill collector, be wary about talking too much while listening too little. People have two ears and one mouth, it’s been said, because they should listen twice as much as they talk. That’s a good rule of thumb when engaging with debt collectors.
During the initial discussion, lend the bill collector your ear and hear them out. But refrain from offering up any information other than confirming your name. Request that any further communication be done via mail rather than over the phone. Recording the phone conversation is also a good idea. It’ll serve you well if a he-said-she-said situation materializes.
Request Debt Information
Bill collectors are legally required to provide you with details about the debt they’re calling about. You’ll want information about who owes the debt, who the creditor is, the amount owed, and how to dispute the debt if you have a reason to do so. Again, ask for everything in writing.
Speak With a Bankruptcy Lawyer
Speaking with a bankruptcy lawyer doesn’t necessarily mean filing for bankruptcy. A legal professional can help you assess your situation, look at options, and make an informed choice.
A bankruptcy lawyer can help you deal with bill collectors the right way. The legal professional will tell you what you should and should not say. You’ll have more confidence going toe-to-toe with debt collectors who use intimidation and shady tactics.
If the bankruptcy lawyer recommends a bankruptcy filing, you can ask as many questions as needed. Such a filing will force bill collectors to halt their pursuit since bankruptcy forces them to leave you alone. A filing isn’t the end of the world. In fact, it can help you deal with your debt problem and get a new lease on life. Discharging a mountain of debt can have that impact.
Struggling with debt can be enough to raise anyone’s stress level. It can put you in a dark place and leave you wondering if there’s any light at the end of the tunnel. Things can get even worse if you have bill collectors hounding you multiple times every day — even on weekends.
If you’re struggling with debt and hate dealing with bill collectors, these tips can help you tame the debt albatross rather than allow it to weigh you down like an anchor. Don’t hesitate to contact a lawyer if you need one — it might be the best phone call you’ve ever made.