Negotiating a Past Due Bill

Hi,
When faced with the scenario of calling a bill collector about a past due bill that you can't afford to pay in the foreseeable future, there are several things to consider to successfully negotiate an acceptable solution. Before making the call, it is important to realize that the bill collector would love nothing more than to resolve your account in one telephone call. Some thoughts to consider:
1) Ask the bill collector for his or her name and write it down.
2) Disclose your financial situation to the bill collector in an honest and factual way. Do not sensationalize or editorialize any part of it. Chances are that the bill collector has already pulled a credit report and is aware of your payment history and outstanding debt structure.
3) If full payment is not available for the particular bill, there are two alternatives: The first is to offer a lump sum reduced amount to settle the bill.
The second is to offer payment arrangements over a long period of time. Collection agencies are not in the business of making long term commitments, so many times they would rather the lump sum settlement. If the offer is reasonable, chances are that it will be accepted.
4) If a lump sum payment is not available and you wish to propose payments, make sure that your proposed payment schedule is one you can keep.
5) If you have no financial resources available to pay your bill, explain that to the bill collector and explain that you are investigating alternatives. Tell the collector that when your situation changes you will immediately inform him or her. But, until then, there is nothing you can do.
Remember that bill collectors deal with all types of people, including professional deadbeats. They have heard every story and stalling tactic in the book. These are suggested ways to negotiate in good faith with a bill collector. Stalling or manipulating a bill collector could result in making your financial situation much worse for you, not better. Tomorrow I'm going to write about negotiating with a customer service representative.
Until then,
Alan