The biggest mistake you can make in any negotiation is to not have clear objectives at the start of the negotiation. When a collection agent calls, you should know exactly what you want to accomplish. You need a plan. Are you trying to negotiate a payment plan where you pay $200 per month for 12 months? Or do you want to negotiate a lump sum payment for half the money you owe with money you will borrow from your parents? Or is your plan to wait for a year or two, and then come back to them and try to settle for an even smaller amount?
If you don’t have a plan, you need one before the phone starts ringing. Read our article on dealing with collection agents, or use our debt options calculator to consider your options and make a plan before the phone starts ringing.
A practical guide for dealing with collection agencies and your debts, from Canada’s top expert, Mark Silverthorn.
This book is now available on Amazon.ca.