Sometimes the first thing in the morning or the last thing at night that many New Jersey residents do is receive calls from creditors or debt collection agencies. Debt collectors can be relentless in their efforts to get individuals to pay. However, it is possible to stop harassing phone calls from creditors, and how that is done depends on each individual’s financial circumstances.
If an individual has the means, it may be possible to broker a deal with a debt collector to reduce the debt for a lump sum payment. For many people, however, that is not an option. The next option would be to negotiate a payment plan that would repay less than the balance owed.
Before picking up the phone to contact a creditor or debt collector, it is crucial that a New Jersey consumer has a full understanding of his or her financial situation. Agreeing to make payments that are simply unaffordable will only make matters worse. If, after close scrutiny, it appears that a resolution is possible, it is time to make the call. However, for some people, there will not be enough wiggle room in the budget even to make payments on a reduced balance.
In that case, the way to stop harassing phone calls from creditors is to file for bankruptcy. When the bankruptcy is filed, all collection actions must stop, giving the filer some much-needed relief and time to plan for his or her financial future. If all, or most, of a person’s debts are discharged, it may be beneficial to have a financial plan that can be implemented when the slate is wiped clean.
Source: Fox Business, “3 Things You Need When Negotiating With a Debt Collector“, , June 12, 2014