Should I Answer Debt Collector Calls? The Pros and Cons of Talking to Creditors

Getting calls from debt collectors can be stressful and scary. You might want to ignore the calls at first and hope the problem goes away. But is not talking to debt collectors really the best thing to do? This article will talk about the pros and cons of talking to debt collectors so you can make an informed choice.

The Downsides of Avoiding Debt Collection Calls

It’s understandable that a lot of people want to avoid calls from creditors and collection agencies. These talks can be awkward, and you might feel bad about your money. But avoiding all debt collectors usually makes things worse. Here are some of the potential downsides .

• The debt won’t disappear. Ignoring debt collection calls may provide temporary relief, but it won’t make the problem go away. Interest, late fees, and penalties will continue accumulating. The debt will keep growing.

• Your credit score may suffer. Unpaid debts get reported to the credit bureaus. Having delinquent accounts on your credit report can significantly drag down your credit score. A low credit score makes it harder to get approved for loans, mortgages, credit cards, and other financing you may need.

• You may get sued. In many cases, creditors have the legal right to take consumers to court over unpaid debts. If you’re served with a lawsuit, you’ll have to deal with the court system and potentially wage garnishment if the creditor wins a judgment against you. Simply avoiding calls won’t stop legal action.

• More aggressive collection tactics When calls go unanswered, collectors may escalate their efforts to contact you through means like letters, home visits, contacting your workplace, or filing a lawsuit. So dodging calls can make the situation more invasive and stressful over time.

The Potential Benefits of Answering Collector Calls

Now let’s look at some of the possible advantages of braving those tough phone conversations

• Resolve the debt. By answering, you open the door to actively addressing the debt through payment plans, settling for less than you owe, or using credit counseling services. Doing nothing leaves the debt unresolved.

• Avoid escalation. Open communication shows good faith and may prevent collectors from using more aggressive tactics to reach you. Being cooperative can go a long way.

• Stop collection calls. Under the Fair Debt Collection Practices Act, collectors must honor your request to stop contacting you. But you have to assert that right – avoiding calls won’t automatically stop them.

• Protect your rights. Discussing the debt gives you the chance to request verification and ensure proper procedures are followed. Dodging calls means lost opportunities to identify any violations.

• Negotiate. You can try to negotiate a discounted lump-sum settlement or affordable monthly payments. But negotiations require dialogue – avoiding calls means losing any leverage to reduce what you owe.

• Explain your situation. By answering, you can explain your financial hardship. Collectors may be more willing to work with consumers who communicate openly about their struggles.

Tips for Answering Collector Calls

If you decide to start addressing debt collector calls, here are some tips to make the conversations more productive and less stressful:

• Ask for identification. Collectors should tell you their name, company, and purpose for calling. Make sure they have contacted the right person about a legitimate debt.

• Keep records. Document the date, name of collector, debt details, and a summary of the call. Follow up any conversations in writing.

• Know your rights. Learn how to protect yourself as a consumer from harassment, false statements, and other illegal actions. Don’t hesitate to end calls that feel threatening or intimidating.

• Have a plan. Decide ahead of time what resolution you’re seeking, what information you need, and what options may work for you. Stay focused on specific goals.

• Stay calm. It’s normal to feel anxious or overwhelmed. But try to keep your composure and have a constructive discussion. Don’t feel rushed into any agreements.

• Bring up hardships. Explain your financial situation and ability to repay. Collectors may be willing to offer some flexibility given personal challenges.

Weighing the Decision Carefully

You can see that there are pros and cons to both answering and ignoring debt collector calls. There are advantages and disadvantages to each approach. Before choosing a strategy, take some time to honestly think about your situation and what you can do. Even though calls from creditors may be scary, being honest with them can help you settle your debt faster and stop it from getting worse. But you should also stand up for your rights, refuse to be harassed, and be careful. You can take control of your debt in a healthy way if you have a well-thought-out plan.