Debt collectors use the 2 main communication methods: mail and phone. The Fair Debt Collection Practices Act (FDCPA) is applicable to the following types of debt: Code of Conduct The FDCPA strictly prohibits debt collectors from conducting any of the following activities: 1) Phoning up consumers outside of the hours am to pm (consumer's local time).
2) Contacting consumers in any other way after receiving written notice that the consumer disputes the debt and refuses to make payment.
ii) Negotiate to settle debts with those creditors with the lowest balance first.
Once those debts are fully paid off, negotiate debt with creditors with the next highest debt. Read this article on Debt Elimination to learn more about this Debt Snowball Elimination technique.
iii) Create your monthly spending budget to show to your creditors so that they can understand your financial situation better.
Read this article on Debt Reduction to learn more about evaluating your debt, creating a household budget and getting out of debt. v) Many creditors are willing to accept a lump sum debt settlement for as low as 70% of the original amount.
vi) Negotiate debt with the original creditor and not the debt collection agency.
This means you have to be fast in reacting to debt collection calls.
iv) Be polite when negotiating debt with creditors.
This is because creditors come across lots of difficult and rude customers, you will be better off if you are polite and understanding.
Also, the government run Federal Deposit Insurance Corp.