When you default on your debt payments, your creditor might decide to send debt collectors – some intolerant creditors like to call them bailiffs – after you. With the introduction of bailiffs, the creditor’s goal is to intimidate you into taking your debts more seriously and looking for ways to settle them.
These bailiffs have one job – which is to scare the life out of you, bore you with calls/texts, and ultimately squeeze every last penny out of you.
Truth be told, most of them are pretty good at what they do. And if you’re not fully grounded with tips on how to deal with them, you might find yourself running from pillar to post anytime you see their name flash across your phone screen.
But in case you’re wondering what you can do to deal with debt collectors, we’re glad to inform you that you’ve come to the right place. Here, we’ve got just about the right set of tips to help you deal with the next set of bailiffs that come knocking on your door.
Know that they’re not as fearsome as they appear to be
First and foremost, if you want to deal with bailiffs, you need to convince yourself that bailiffs are not a tough nut to crack. The reason for this is that if you’re still drinking from the cup of “debt collectors are scary and intimidating,” it will be near-impossible for you to deal with them. Because, all you’d be seeing when they approach you are a bunch of trained experts with an ability to make your life unbearable.
But we both know they don’t have the power to do that!
All they can do is try to use some intimidating and forceful language to coerce you into making instant payment. As such, you need not dread them.
If, after months of texting, calling, and intimidating you, they still get no payment, the best they can do is file a case against you.
Let the negotiation drag on
Debt collectors know that the older a debt is, the less likely it is for them to collect it because by then, the debt might be easier to negotiate. As such, they try to scare you into making immediate payments from the very first moment they speak with you.
Although it is often best to try to pay a debt the moment a creditor reports your case to a debt collection agency, if you really can’t afford any payment, you can choose to let the debt collection process drag on. The longer it drags, the better it is for you to enter into a debt management negotiation with them.
Use the statute of limitations to your advantage
In case you didn’t know before now, there is something called the statute of limitations in the world of debt collection. Has your debt dragged on for close to ten years? Are you being contacted by a bailiff for a debt you owed a long time ago? Or maybe the debt collector is just calling to remind you that you owe some debts even you don’t remember.
Not to worry, you just need to check the statute of limitations for the state where you borrowed the money from. Often times, the statute of limitations in most states run from three to ten years from the date you last made a payment.
Usually, once a debt has passed the statute of limitations of a state, such debt is deemed too old to collect.
Offer them any amount you have
One thing creditors that use bailiffs fail to understand is that the moment you bring in a debt collector to collect a debt for you, you give the debtor an opportunity to pay your money at their own pace.
Let me explain why this is so to you. Although the theoretical conception is that bailiffs will coerce debtors into making instant payments, the reality is that most bailiffs collect anything given to them.
Remember, debt collectors, like every other worker have to meet performance requirements at their jobs. This means that they might need to collect a certain amount each month or close a certain number of accounts every quarter.
That means that some debtors – those who know about the existence of this situation – might have better bargaining power at the end of the month. Because by then, the bailiffs would need to meet their monthly targets and would be willing to take just about any amount from any debtor that’s willing to pay.
Ask for renegotiation outright
Since your creditor has decided to play the bailiff’s card, now it’s your turn to play the debt management card.
Already you know that you cannot pay up the money you owe them the way the debt collector wants you to. So, instead of watching them threaten you with calls and texts, you can seek out a debt management plan (DMP), Scottish trust deed, an IVA, or any other relevant debt management scheme.
Once you bring any of these schemes to the table, your creditor has no choice but to call back their bailiffs and dance to the tone of whatever arrangement you bring to the table.