Dave Says: Calmly and Confidently Control the Situation 

Calmly and Confidently Control the Situation

Dear Dave, 
I’ve been talking to my creditors, because I want to pay off my debt as soon as possible. In dealing with them, I’ve noticed sometimes they are reasonable and understanding, while other times they are pushy and even mean. Do you have any suggestions on dealing with creditors when you’re trying to make amends and correct financial mistakes of the past?  
Olivia

Dear Olivia, 
Let’s start with a few basics. When it comes to dealing with debt collectors, keep track of all calls and emails between you, and be 100% up to speed on all your accounts. Have records of all the payments you’ve made, and the dates on which they were made. Know what you owe, who you owe and exactly how much you owe them.

If a collector agrees to settle the debt, get all the specifics of that agreement in writing, and keep the document as proof—just in case they “forget” they made the offer. Knowing the facts, and having them close by, gives you the upper hand in any situation. Plus, all this will make it easier to report them, and begin building a case file, if they violate the federal Fair Debt Collection Practices Act.

Trust me, you’ll run into all sorts of collectors no matter what kind of debt you have. Occasionally, they’re friendly and reasonable. Others can be downright nasty. Whatever their approach, always remember one thing. Their endgame is to separate you from your money. Most debt collectors try to take advantage of a person’s lack of confidence and emotions. So, if you don’t know your rights, they can scare you by using bogus threats. Always calmly explain your situation, the reason you’re behind on the debt and how you plan to pay it off. Never let yourself get drawn into an argument, either. If they start yelling, calling you names or cursing at you, hang up immediately. Make a note of the call, and the name of the person you spoke with.

Any misbehavior aside, I want you to remember one thing. If you have debt, you have a legal and moral obligation to pay it. However, there’s nothing wrong with you calmly and confidently controlling these kinds of conversations. You may have made some financial mistakes in the past, Olivia. But that doesn’t mean you should allow someone to insult and abuse you.
— Dave

* Dave Ramsey is a nine-time national bestselling author, personal finance expert and host of The Ramsey Show. He has appeared on Good Morning America, CBS This Morning, Today, Fox News, CNN, Fox Business and many more. Since 1992, Dave has helped people take control of their money, build wealth and enhance their lives. He also serves as CEO for Ramsey Solutions.