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Did you know that when debts owed go into collections, they do not expect to be paid in full. Debts owed that go into collections can often be negotiated to a fraction of what was actually owed. In order to negotiate the best deal you must understand how the collection system works, the debt collectors mindset, know your rights and how to start off the negotiations.

Debt Collection System Explained

When debts go unpaid for several months that company normally negotiates with another company in order to get you to pay. This third party either purchases your debt for a fraction of what is actually owed, or they work for the creditor for a fee or a percentage of any money that they collect. The debt collector is in the sole business of collecting debts and they have many methods they use in oder to make individuals pay.

Debt Collectors Mindset

It is important to understand that it is the debt collectors job to make you pay. They get paid when you pay. Debt collectors deal with unpaid debts on a daily basis and they do not have the emotions that you may have about your debts. Debt collectors, from the nature of their business are most of the time aggressive and have no problem putting stress on you and pressuring you to pay.

Know Your Rights

When dealing with debt collectors you need to know your rights. Debt collectors normally will not tell you your rights and possibly will break the law when trying to recover debts. There are many rights you have, but a few of the most important ones are the following:

1. Fair Debt Collection Practices Act (FDCPA) – This is a federal law that requires debt collectors to treat you fairly. This law places limitations on the way they can collect. This act places limitations on when the collector can call, who they can contact, obscenities, amounts they are entitled to collect, suing in locations far from residence, threatening remarks, and many more. The following website gives great details on the FDCPA: Fair Debt Collection Practices Act Details. If you feel a collector has violated one of your rights, you should contact either an attorney or a credit company that can help with this.
2. Statue of Limitations – With all debts there is a time limit to how long creditors or collections agencies can sue in order to collect debts. Depending on what state you live in this time frame varies from 4 to 25 years. A creditor may be contacting you about a debt that is outside of these limitations and you may not be entitled to pay. This is important to find out before paying anything to a creditor because if the statue of limitations has expired and if you make even a tiny payment, this will restart the statue of limitations and you will now legally owe this debt. It is important to get detailed information about your debts owed with dates and amounts from the creditor.
3. Privacy – A debt collector is not suppose to tell anyone about the debts that you owe other than a co-signer or a spouse. They can call neighbors and employers, but only to obtain contact information and that is it. If they cross that line, you may be able to take legal action against them.
4. Harassment, False Statements, and Unfair Practices – This may be very common among debt collectors. They will almost say anything they can in order to make you pay. They are not allowed to make false statements or harass you in illegal ways. It is smart to keep records of what was said and if you believe something may be illegal, contact an attorney.

Debt Collection Negotiation

Once you have followed through on the debts and made sure they are all legitimate debts that you owe you can begin negotiations. The collector will of course demand full payment but in they know they will not actually receive this. They will negotiate as hard as they can and that is why you have to negotiate hard as well. A good starting place is offering about 20%-30% of the total amount owed. The easiest way to settle your debts is if you have some money and offer them a lump sum payment right away, still only for a fraction of what is actually owed. Be careful not to give in and agree to pay for anything you cannot afford. Most of the time, you will end up meeting in the middle. Before you are done negotiating it is important to try to get them to remove any negative items on your credit report that may be bringing your credit score down. This will help you save on future debts by allowing you to obtain a lower interest rate.

If you feel you cannot negotiate on your own there are professional companies out there that can help you. Most of the time these companies will give you a free consultation and let you know what they can do for you before you decide to use their service. What is good about these companies is that they won’t have the emotions you would have when trying to negotiate your own debts. Even after paying the fee, you will most likely still be better off than if you were to do it yourself.

Everyone is trying to promote their business online – from the mom-and-pop retailer to the big-name brands like Macy’s and Sony. Don’t be discouraged by the deluge of promotions and options out there. This article is not a do-it-all guide, but it will offer you some key points on how to get started.

1. Identify Your Market- Do They Use Facebook or Craigslist?

The above is not an either/or, but it’s an example of the way you should be thinking as a business owner. Identifying your market is always difficult, but if you’ve already done this, you’ll know where on the internet you’re going to want to spend a majority of your time and money. One of the rages in today’s digital world is “social media”. While it’s necessary for you (yes, necessary!) to have a Twitter, LinkedIn, and Facebook, don’t go overboard. Keep in mind that the majority of Facebook users are savvy youths who are keenly aware that they are being advertised to. If your services and products are for 15-28 year old’s, Facebook ads and promotions are a good place to explore. If your services and products are for those in their 30s-60s, Craigslist is a cheaper alternative. Online advertising is expensive, and in order to use this money wisely, it’s going to be best for you to target where you will get the most bang for your buck.

2. Learn Basic HTML

This is, believe it or not, easier than it seems. Take a tutorial. The reason for this is that you’re going to want to start generating landing pages for your sales and services. What is a landing page? Go to Craigslist, look in financial services, and click on one of the links. Generally, these pages will show up in the ad or pop-up when you click it. A landing page is basically a sales page that is looking to entice your audience to learn more. Design your landing page according to your target market. For teens, something flashier is necessary. For adults, something more streamlined will do the trick. Again, you don’t have to go overboard with HTML. There are plenty of free tutorials online. Most landing pages simply need a few images, color, and a title to pique interest.

These two tips go hand in hand. You’re going to start marketing. And good marketing is going to start with landing pages that are directly targeted to your audience. Unlike the luxury of a TV commercial or print ad, you’re going to have to be extremely specific. There are millions of people marketing online. Get started with these two tips and you will be ahead of the game.