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Negotiating with Debt Collectors


It’s been a good month at work. Really good. With that being said, I would like to seeing about negotiating with debt collectors regarding my smaller debts.

While I am still focused on my credit card debt, I would like to revisit the debt I have in collections. I’m planning to make some calls later this week and see if there is any negotiating to be done.

Don’t Pay Debt that is Not Yours

Someone recently asked me who I blamed for my debt. And I joked around saying the universe, my ex-husband and so on. But in the end, my debt is the result of MY DECISIONS. I must own it, all of it.

debt spelled in penniesBut that doesn’t mean, I am going to be responsible for other’s debt. Last week I got a call from American Express. They were asking me to settle a debt with them.

I have never in my life had an American Express card. Thankfully, it seems to have been settled with that one phone call. I received a letter from them acknowledging the error or fraud and that I did not owe them any money.

It was surprisingly simple.

Tips for Dealing with Collection Agencies

I read up on some tips for negotiating these payments. On the debts that are actually mine that is.

Most of the tips were common sense to me, but I learned a few things.

First, I didn’t realize that you could get them to stop calling you. Did you know that?

And while I am still concerned about my credit score, I am much more focused on just being rid of my debt. I found the Credit Warriors site to be very thorough when it comes to collection accounts.

There are lots of legalities when it comes to collection agencies. What they can do? Where they can do it? When they can do it? And how they can do it?

The laws also govern if they can legally attempt to collect on a debt.

Hit me with your personal experience. Tell me any tips you have for getting these debts settled.


Plan #5: Emergency Fund & Credit Card


After I spent of the bulk of last year getting back on my feet and establishing a healthy savings account, I began to diligently tackle my debt again. Creating mini-plans really worked for me.

You can see those plans here:

Now it’s time for a new plan.

Plan #5 Details

I appreciate your comments on my recent debt update. I felt really good about where I am right now after that update. Posting here so regularly is really helping keep me accountable and on track!

With that being said, I am ready to focus on my next mini-plan. It is two-fold.

Pay off Self Lender

With a balance due of just $291, one good month of income will have it settled. And because Self Lender is essentially a savings account, I will receive a minimum of $1,100 back.

This will become my emergency fund. Starting me off on the right foot for this chapter in my debt payoff journey.

piggy bank

Hopefully, I can pay this off in July and be done with it. Because this is such a small, but large step at the same time, I am making this plan twofold.

Pay off My Credit Card

The big part of my plan is to pay off my credit card. Its balance has hovered right around $5,000 for years now.

For most the past year, I have paid it off every month, but then turned around and used it to pay monthly obligations, buy groceries, etc. This way I paid little to no interest, but never really got out from under the debt.

My plan for paying it off is this:

  • Emergency fund of $1,100 established, so I will not focus on any savings right now.
  • Pay minimum on all other debts and cover monthly obligations. (Except for the extra $92 I pay every month towards the car.)
  • Anything extra will go towards the credit card.
  • And probably, most importantly, I will stop using the credit card EXCEPT for gas. (Because of the abundance of times my checking account has been cleared out, I use the credit card for gas.)

Because my income fluctuates greatly these days, this process could takes anywhere from a couple of months to several months. All depends on the number of projects I can pick up and complete.

Tell me, what am I missing? Are there other suggestions you would make for this plan?