Successful Tips on Dealing With Debt Collectors During the Pandemic
Naomi Cook | December 02, 2022
Summary: Has COVID-19 left you stressed out over past due balances? Here are some successful tips on dealing with debt collectors during the pandemic.
The COVID-19 pandemic and the massive economic devastation it caused have made many people's lives even more difficult. Because of the coronavirus-driven recession, many individuals have either become unemployed or underemployed.
It's even sad to think that those who used to have enough now struggle to put food on their tables and keep a roof over their heads.
Dealing with debt, especially in times of uncertainty, can be a stressful experience. If you're having trouble paying your bills, here are a few things you can do:
Things to consider when dealing with debt
1. Inform your lender about your current financial situation
If you think you'll fall behind on your credit card, auto loan, or mortgage payments, make sure to call your lender and inform them about your situation.
Your bank may offer you hardship programs or accommodations to help you. Under these programs, they may allow you to delay your repayments temporarily.
If you inform your lender that your payment will be delayed, you may avoid a bad credit report. You may even be allowed to elude interest charges.
Because of the pandemic, your lender may be dealing with high call volumes. Thus, the wait may be longer. If that's the case, go to your bank's website and check if they have the information you need.
Perhaps their site allows you to download online applications for accommodations or hardship programs. You may also search for various ways on how to communicate with them electronically.
2. Consider working with a credit counselor
You may consult a credit counselor for advice regarding your money and debts. When working with one, prepare to discuss your financial situation and goals, employment status, and regular income and expenses.
What to do if your debt is given to a debt collector
Debt collectors might contact you on behalf of your lender or their behalf if your creditor sold your debt to them.
If that's the case, below are a few tips on how to deal with debt collectors in a proactive and less stressful way:
Confirm whether you owe all the money
When you receive a letter from a debt collector, make sure to read it carefully. The letter should specify which debt was sold and the amount you still owe.
If you think there's a discrepancy, ask the debt collector for more information and copies of all relevant documents so that you can get professional advice.
Make sure to assess your finances and figure out how much of the debt you can pay off.
If your current financial position won't let you pay the entire debt right away, write to the debt collector and explain in detail your circumstances.
You may also ask them to waive your debt or put it on hold for a while with no added charges.
Once the debt collector knows your financial situation, they may choose to:
Create a payment plan
Lessen the amount you owe
Waive the whole debt
Take legal action
When they refuse your request, you may feel frustrated and upset. However, remember that aggressive communication will not help you resolve the issue.
No matter how strenuous it may seem, you must maintain your composure and pursue an open dialogue with the debt collector.
If negotiations fail and they are determined to take you to court, get legal advice to understand your options.
Keep a thorough record of correspondences
You must keep a detailed record of all your communication with the debt collector. Ensure to include the dates and times they contact you, especially if they call you excessively.
It would help if you also noted how the debt collector contacts you and what you say to one another. Remember to confirm in writing every agreement you make with them.
The FDCPA (Fair Debt Collection Practices Act) states that a debt collector should not use unfair practices in collecting a debt.
If you think you're being harassed and believe that you don't owe the debt, you may dispute all parts of it.
However, if it's your debt but you don't have enough money to pay it off, you may consider filing bankruptcy. Doing so can give you a fresh start while providing legal protection from debt collection efforts.
Conclusion
COVID-19 has impacted numerous people financially across the U.S. If you fall behind on your financial obligations, it can be stressful and overwhelming when a debt collector calls about your debt.
However, you shouldn't get intimidated easily. Know that you can take some steps to find out your options and protect your position.
What is SoloSuit?
SoloSuit makes it easy to respond to a debt collection lawsuit.
How it works: SoloSuit is a step-by-step web-app that asks you all the necessary questions to complete your answer. Upon completion, you can either print the completed forms and mail in the hard copies to the courts or you can pay SoloSuit to file it for you and to have an attorney review the document.
Some creditors, banks, and lenders have an internal collections department. If they come after you for a debt, Solosuit can still help you respond and resolve the debt. Here’s a list of guides on how to resolve debt with different creditors.
If the thought of going to court stresses you out, you’re not alone. Many Americans who are sued for credit card debt utilize a Motion to Compel Arbitration to push their case out of court and into arbitration.
Below are some resources on how to use an arbitration clause to your advantage and win a debt lawsuit.
Do you keep getting calls from an unknown number, only to realize that it’s a debt collector on the other line? If you’ve been called by any of the following numbers, chances are you have collectors coming after you, and we’ll tell you how to stop them.
Knowing your rights makes it easier to stand up for your rights. Below, we’ve compiled all our articles on federal debt collection laws that protect you from unfair practices.
We’ve created a specialized guide on how to find debt relief in all 50 states, complete with steps to take to find relief, state-specific resources, and more.
Debt collection laws vary by state, so we have compiled a guide to each state’s debt collection laws to make it easier for you to stand up for your rights—no matter where you live.
Don’t have time to go to your local courthouse to check the status of your case? We’ve created a guide on how to check the status of your case in every state, complete with online search tools and court directories.
Forgot to respond to your debt lawsuit? The judge may have ordered a default judgment against you, and with a default judgment, debt collectors can garnish your wages. Here are our guides on how to stop wage garnishment in all 50 states.
Debt settlement is one of the most effective ways to resolve a debt and save money. We’ve created a guide on how to settle your debt in all 50 states. Find out how to settle in your state with a simple click and explore other debt settlement resources below.
Not sure how to negotiate a debt settlement with a debt collector? We are creating guides to help you know how to start the settlement conversation and increase your chances of coming to an agreement with every debt collector.
We give a factual review of the following debt consolidation, debt settlement, and loan organizations and companies to help you make an informed decision before you take on a debt.
You can represent yourself in court. Save yourself the time and cost of finding an attorney, and use the following resources to understand legal definitions better and how they may apply to your case.
And 50% of our customers' cases have been dismissed in the past.
"Finding yourself on the wrong side of the law unexpectedly is kinda scary. I started researching on YouTube and found SoloSuit's channel. The videos were so helpful, easy to understand and encouraging. When I reached out to SoloSuit they were on it. Very professional, impeccably prompt. Thanks for the service!" - Heather