How to Deal with Aggressive Collection Agencies
Summary:
- Stay calm and polite during debt collection calls. Never agree to anything on the spot—say you need time to think, and end the call on your terms.
- If asked about repayment, you can say you’ll speak with an attorney. This signals that you’re seeking legal advice, often prompting more respectful treatment from collectors.
- Pressure tactics lead to poor decisions. Avoid on-the-spot commitments and only discuss payments after reviewing your full financial situation.
When collection calls start, panic does not help. In this conversation, Philip Tirone and bankruptcy attorney Dai Rosenblum share a calm, practical playbook for handling collectors on the phone, deciding what to say, when to negotiate, and when bankruptcy makes more sense than juggling multiple debts.
Watch & Learn: How to Handle Debt Collection Calls
Frequently Asked Questions
- How to handle debt collection calls: what should I say to a debt collector?
- Should I tell a debt collector I will speak with an attorney about bankruptcy?
- Why avoid on the spot agreements during a debt collection phone call?
- How do I negotiate with debt collectors and set a payment I can afford?
- How do I stop debt collector calls when I have multiple debts?
- When should I file bankruptcy for debt instead of setting up payment plans?
- Why does the sunk cost fallacy in debt keep people paying when it hurts?
- How do debt collectors view bankruptcy and how does it change negotiations?
- How do I decide if bankruptcy is worth it compared with paying old debt?
- What is the best debt collection phone script to protect my credit?
FAQ: How to handle debt collection calls: what should I say to a debt collector?
The first thing to know about how to handle debt collection calls is to stay calm and polite. Do not agree to anything on the spot. Say, “I need to think about it,” and end the debt collection call on your terms.
FAQ: Should I tell a debt collector I will speak with an attorney about bankruptcy?
Yes, you should tell a debt collector you will speak with an attorney about bankruptcy. You can say, “I am going to talk to an attorney about this.” Collectors often assume that means a bankruptcy attorney, which can shift the negotiation.
FAQ: Why avoid on the spot agreements during a debt collection phone call?
You should avoid on the spot agreements during a debt collection phone call because pressure leads to bad decisions. Step back, think through your options, and make choices when you feel clear and steady.
FAQ: How do I negotiate with debt collectors and set a payment I can afford?
To negotiate with debt collectors and set a payment you can afford, start when you are calm and pick a monthly amount you can live with. Do not overpromise.
FAQ: How do I stop debt collector calls when I have multiple debts?
To stop debt collector calls when you have multiple debts, consider bankruptcy, since one filing can end the calls and wipe out multiple unsecured debts.
FAQ: When should I file bankruptcy for debt instead of setting up payment plans?
You should file bankruptcy instead of setting up payment plans when the time, stress, and total dollars outweigh the benefit of slogging through multiple debts.
FAQ: Why does the sunk cost fallacy in debt keep people paying when it hurts?
The sunk cost fallacy in debt keeps people paying when it hurts because loss aversion makes us protect past effort and a high credit score even when bankruptcy would save more money and stress.
FAQ: How do debt collectors view bankruptcy and how does it change negotiations?
Debt collectors view bankruptcy as a risk of getting nothing, which is why mentioning you will speak with an attorney can improve your leverage.
FAQ: How do I decide if bankruptcy is worth it compared with paying old debt?
To decide if bankruptcy is worth it compared with paying old debt, compare the emotional discomfort to the real savings you will keep.
FAQ: What is the best debt collection phone script to protect my credit?
The best debt collection phone script to protect your credit is to be kind, avoid commitments, say you will think about it and speak to an attorney, then choose a plan you can sustain or take the clean slate bankruptcy provides.
