by Jennifer Moll

Created on: July 19, 2010

Believe it or not, but not all collection agencies are bad.  There are many collection agencies that are very professional and are willing to work with their debtors for a solution that benefits both parties.

If you are getting collection calls or letters, you do not have to feel fear.  The best way to handle each situation with any collection agency is in a professional manner.

To begin, send a letter to the collection agency to try to negotiate a settlement that will be accepted as payment in full without paying the entire balance.  Many agencies will settle for about thirty percent of the balance and are willing to delete any negative information from your credit report immediately upon receipt of payment.  Many agencies are more than willing to accept a smaller payment as payment in full as opposed to not receiving anything at all.

If the agency you are dealing with will not accept a percentage of the balance owed as paid in full and demands the entire balance, they may still be willing to set-up affordable monthly payments arrangements with you.  Just be upfront with them and set-up payments that you know you can afford and be sure to make these payments by their due dates.

Some agencies will be willing to freeze or cut a portion or all interest owed if you agree to pay either in a one-time payment in full or set-up a monthly payment plan.  This can save you lots of money!

A very few agencies will do anything and everything in their power to try to get payment, whether legal or not.  Don’t be fooled for frightened by these tactics.  You do have rights and can file a complaint if you feel you are being treated unfairly or illegally.  You can find a wealth of information and advice at the Federal Trade Commission’s website.

Just remember, most collection agencies operate legally to try to collect money owed to them.  Their purpose is to collect money and will usually work in any way they can with you to accomplish that goal.  So whether you are able to negotiate to pay a smaller amount, make small monthly payments or cut interest payments you will not only be able to pay off your debts and stop harassing phones calls and letters, but you will also be improving your credit which is priceless in itself and well worth the effort.

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