A lot of people in the United States are in debt. Most of the people in this country have at least one credit card, and many people have more than one (sometimes as high as five cards). So, it comes as no surprise that we sometimes cannot pay off the debts we owe. When that happens we more than likely end up in the hands of a collections agency.

You know who these people are: they’re the folks who call you say and night, nonstop, leaving messages on your answering machine and cell phone voice mail.

Before dealing with a collections agency, we have to remember a few things:

• These are regular people just doing their job.
• Being a collections agent is pretty crappy: low wages, low commissions, and high quotas that have to be met. Not to mention the numerous angry people upset from the phone calls.
• Collections agents generally know that you’re in a bad financial situation, otherwise you would not be in collections.

With these three things in mind we can form a plan of action that will not only end the phone calls, but also help you climb your way out of debt.

1. Be the one to make first contact. Collections agents only get more persistent as time goes on: the closer you are to legal action being taken against you, the more phone calls per day you are going to get. By being proactive about your situation you make yourself stand out, and your collections agent may be more willing to help you out.
2. Be upfront and honest with your agent. You may be unemployed, have had a repossession, or been evicted from your home. Perhaps you just took on debt you knew you could not afford to pay back. Whatever your story is, be honest with your agent because chances are that they’ll try to work with you.
3. Have your financial statements ready and be willing to share that information. By being prepared you’re showing that you’re willing to work through this. Plus, if you do manage to work out a payment arrangement, most agents will need to know some basic financial information, such as how much you make per month and your expenses per month.
4. Don’t be a dick. Collections agents are regular people just like you and me. And, just like you and me, they don’t like to be treated like dog crap. A collections agent (just like any normal person) will be more inclined to help you work your way out of this situation if you’re nice and pleasant to work with.
5. Be proactive about your situation. If you strike a deal then make sure you stick to it; however, if you can’t maintain your end of the bargain, then call your agent and let them know your situation. Remember: the collections agency would rather you keep paying them money than them being forced to file a lawsuit against you.

[tags]collections agency, debt counseling, debt management[/tags]