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

Getting calls from debt collectors can be stressful and scary. Your first instinct might be to ignore the calls and hope the problem goes away. But is avoiding debt collectors really the best approach? In this article, we’ll look at the pros and cons of answering debt collector calls so you can make an informed decision.

The Downsides of Avoiding Debt Collection Calls

It’s understandable why many people want to dodge calls from creditors and collection agencies These conversations can be uncomfortable, and you may feel embarrassed about your financial situation However, avoiding debt collectors entirely often does more harm than good. 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 accounts that are past due on your credit report can really hurt your credit score. You may have trouble getting loans, mortgages, credit cards, and other types of financing if your credit score is low.

• You may get sued. For many unpaid debts, creditors have the legal right to take people to court. When you get sued, you’ll have to deal with the court system and, if the creditor wins, they may take money out of your paycheck. 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 get a lower lump-sum payment or monthly payments that you can afford. But negotiations need talking; if you don’t call, you lose the chance to get the amount you owe lowered.

• 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. Understand consumer protections against harassment, false statements, and other prohibited practices. Don’t hesitate to end calls that feel threatening or intimidating.

• Have a plan. Make up your mind ahead of time what solution you want, what information you need, and what choices might 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

As you can see, answering or avoiding debt collector calls both involve trade-offs. There are advantages and disadvantages to each approach. Take time to honestly assess your situation and abilities before deciding on a strategy. While calls may seem intimidating, having an open dialogue with creditors may lead to faster resolution and prevent the debt from mushrooming. But you also need to protect your rights, stand firm against harassment, and proceed with caution. With a balanced, well-informed strategy, you can take control of your debt in a constructive way.