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Calling Your Creditors   Validate Your Debts -- Negotiate with Creditors -- Rebuild Credit

In some cases, you may be better off calling your creditors to negotiate rather than writing impersonal letters. Some people admire someone who has the guts to call them and hash-out a problem (not all, though.) It is key to make sure you get the final deal in writing, either via fax or US Mail. Once you strike a deal with a creditor, they will undoubtedly ask you to pay for the debt right then and there, over the phone with a credit card. It's tempting, especially if you got along well on the phone. Simply ask to "get it all down on paper just to play it safe." 

When calling, be sure to have all your account information in front of you and a clear plan of action. You need to keep your story straight when dealing with them.  Don't blow the whole deal by tripping yourself up and looking dishonest. The same guidelines apply to telephone conversations as with writing letters to creditors: don't be aggressive or angry. Remain calm, friendly and professional. Do not try to act like an attorney by quoting legal codes or making threats to take legal action. The talks will stall and the brick wall will go up. Collectors do not cower when faced with threats, even if they know they are doing things which are borderline illegal or at the very least, morally reprehensible. They are protecting the company's interests. To them, you are just another dirtbag who skipped-out on paying your debts....a smudge on society who shirks responsibility. Don't reinforce their beliefs! Assure them you are responsible, but you either (insert your own personal issue here) had a run of bad luck financially and you're trying to recover, or it's not yours, you can't prove it but your credit is so important to you, you are willing to pay it to make it go away.

Be sure to get the name of the person you are talking with and their direct line. It's a good idea because if you spend a while talking to someone and are making progress, what happens if you get disconnected? Good luck getting a hold of the same person, especially if it's a large company.

If the debt is not yours, but you have absolutely no evidence to back-up your claim, don't lose hope. You may be able to convince the creditor of that to a certain degree and they may be willing to accept a deal. The best deal is you pay a portion of the debt (called a compromise) in exchange for a full deletion. Be careful! Negotiating a settlement and putting together a good settlement offer can be tricky. We offer negotiation and settlement forms and letters in our Credit Repair Letters kit, along with full instructions.

Remember...the bureaus will continue to report a paid collection for 7 years, so it's not much of a deal if you don't get a deletion. You also need to keep in mind that if you're trying to qualify for a mortgage, you will have to pay all your collections because they won't fund your loan until you do. Many times the debts are paid through escrow before the loan closes.

If you can't seem to make a creditor see things your way, and the only thing they will accept is full payment with absolutely no chance of a deletion, don't give up. If the creditor has violated any laws in the collection process, and is being difficult with you, you may want to take them to court. Small claims court is always an option because the fees are nominal and you don't need a lawyer. I've heard of many cases settling before they even stepped foot in court, with the debtor seeking deletion in trade for dropping the lawsuit. But you've got to have hard evidence of a clear violation of the FDCPA or the FCRA. You may also want to rattle some cages by filing a barrage of complaints with various government agencies that handle credit issues and consumer protection.