The Financial Monster @ The End of This Book Series: Your Going to Call The Collectors

Taking the first swing

So, up to this point you have stabilized your home, prioritized your bills, learned to do a budget, reflected on yourself internally, and now you are ready to take the first swing.  If you are scared, I understand.  Why would you bother
calling the very collectors that you have tried so hard to avoid?  You might
even be wondering how you are going are going to pay all of your delinquent
debts back.  I understand how you feel; I have been in your shoes.  Just the
fact that you are contemplating this is a good sign.  It means you want to honor
you commitments, and I commend you for that.  Now it’s time to step into the
ring.

Use your Jab

So, the initial step is to decide what bill collector you are going to contact first.  You have worked so hard to stabilize everything, so we aren’t going to contact them all at once, unless you have cash for everything. 
Actually, it’s still quite a process, so I wouldn’t even contact them all at
once even if you had enough to pay for everything.  What you want to do is pick
a small debt to practice on, a debt that you have a little walk away power on
and isn’t likely to get you all worked up with emotions.  Once you have picked
it out, I want you to contact them, and tell them that you wish to create a
settlement offer.  You can settle with your collectors often for 50% of the
balance depending on the age of the debt.  So, the two most important things
when negotiating a balance:

1.Get it in writing.

2.Don’t give them electronic access to your checking account.

When you first contact them, they will be resistant.  They won’t accept your offers.  They won’t be willing to give it to you in writing, but you must remain steadfast.  You don’t want to be disrespectful, but at the same time help them
to realize that you have nothing to lose.  You want them to know that you’re
serious about your offer, and if they are serious about collecting, they will
take it.  Help them to realize that you have plenty of other debts to pay off,
and you are more than willing to move on.  Now that you know what it’s like to
run through repaying back one debt you can move on to the next.

“You ain’t so bad!”

This isn’t an easy or quick process, but you can duke it out.  You need to have an attitude like Rocky fighting Clubber Lang in Rocky III, when he was taking it on the chin.  He was taking the punches and coming back for more,
saying “You ain’t so bad!”  The more you payback the easier it will get.

.

Some things to remember about bill collectors

1. They are not your friends. They will say and do anything to collect the bill.

2. Some bills you may need to send a payment or two before they will take you serious. 

Get the settlement in writing, but you can get them out of stupid mode by sending them a payment or two with a money order.  Keep all receipts, and send them signature required.

3. Don’t talk to them excessively. 

The more you talk to them, the more they have against you for their emotional weaponry. Don’t tell them your story, just make the offer, and only speak about things that get you closer to the end goal.  If you need to say goodbye and call
again another day that’s fine; you remain in control.  Also, set boundaries on
when you are available and willing to talk to them (I.e. every 14 days).

If you will make the attempt to make your debts right, and do the work, it will pay off (pun intended) in time.  You will become a stronger individual when it comes to your finances and even other areas of your life.  This will carry
with you through life's cuts and bruises. 

Keep Finding Forward.