Mistakes People Make During Debt Settlement And How to Avoid Them

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In the second quarter of 2019, total credit card debt incurred by Americans was $868 billion. An average household keeps aside a minimum of 18% of its income specifically for debts, a percentage that’s slowly rising, because of poor spending behavior that is

fueled by the availability of instant approval credit cards. The financial situation is made worse by a steep increase in the costs of housing and tuition. 

In such a scenario, millions of people get calls from debt collectors when their credit cards are maxed out or when they miss a couple of payments on their mortgages. They panic, worry over their bad credit score and try to settle as soon as possible. Instead of getting in touch with a debt collection attorney for guidance, most of them skew their financial health further by accepting the conditions set forth by the debt collector. 

Entering into a negotiation rather than letting only the debtor define the terms can be extremely beneficial for you as it eliminates hundreds of dollars of debt that you have incurred with time. If you act smart, then you might even be able to reduce outstanding debts to half. 

If you don’t want to commit rookie debtor mistakes and are seeking a good deal, then this blog is for you. Here are things you should remember when you get a call from a debt collector: 

  • Don’t act fast 

The collector’s job is to put pressure on you and to instill a sense of urgency so that you settle the debt. But your job is not to fall for this trap. Remember, the debt collector gets a small sum of what you pay, so he or she will try to lock a deal fast to avail incentives. He or she might claim that the debt settlement offer will expire if you do not act within a stipulated amount of time. 

Instead of giving in, get the advice of experts. If you live in Texas, then get in touch with professional debt collection attorneys. They will walk you through the way forward and appraise you of your rights as a debtor. 

  • Don’t give away too many details 

Don’t reveal the name of the company you work for if the debt collection agency doesn’t have the information already. The same goes for your personal details that they aren’t aware of. Collectors might leverage these details to put pressure on you so that you pay up. 

You have the right to protect your privacy but if they do insist, then politely inform them that since they are already able to communicate with you, they won’t require other details. Convince them that you too want to settle the debt amicably.

  • Don’t accept the first deal 

This is one of the most common mistakes that debtors make when they receive a call from third-party collectors. It is highly likely that most of the debts have been blown up with unnecessary fees as well as penalties. So make sure that checking your bills is the first thing you do. Get the collector to waive these off and try to get the name of the agency he or she is working with. If the collector doesn’t drop these charges, then wait for another collector to call you. 

Seeking expert help is one of the most effective ways to make positive progress when it comes to debt settlement. If you are unsure regarding how to go on about it, then seek the services of American Debt Resolutions’ debt collection attorneys in Texas today. 

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