The biggest problems you face when confronted with a debt collector at your door are fear, guilt, and finally money. Money is last on the list because its actually the least important issue; the chief issue is the bully on your doorstep trying to extort money.
FEAR
Debt Collectors will use lies and intimidation to get what they want. They will try to gain access to your home and make dire threats about legal action and employ thinly veiled physical intimidation. The truth is that unless they have a court order, they cannot enter your home or remove property. They can't come in, period. If they attempt to force entry, you have the right to physically throw them out and they know it. Be firm and polite, and don't hesitate to get right back up in their faces if they make you feel physically intimidated.
GUILT
Debt Collectors don't have to try and make you feel guilty; if you're an ordinary person, the natural tendency is to feel obligated to honour your debts. No-one is 100% honest 100% of the time, but we generally want to believe we're decent people, so it's natural to feel bad if you have a Debt Collector on your door, calling you a welcher.
You have nothing to feel guilty about. The majority of people do not understand the nature of money and think it still involves physical wealth. It doesn't; since the world moved off the Gold Standard, all money is essentially debt. Those dollar bills in your wallet are just debt that the bank owes you, as is your bank account. Selling debt from one account to another is the way the Capitalist system works, and its true to say that "A man"s wealth is measured by his debt'; most people whether rich or poor have a net dollar-worth of zero when their debts are compared to their assets. It doesn't matter if you live in a mansion and drive a sports car or live in a one-room apartment and take the bus; rich people may have bigger debts and more credit, but we're all in debt of some sort.
How is this relevant to the Debt Collector on your doorstep? Simple; he does not represent your original creditor. His company operates by buying your debt for a few cents on the dollar and then bullying you and their other "clients" for the balance. You should not feel guilty, because you did not borrow the money from him or his company; they are a third party called in when your original creditor decided to sell your debt. If you're facing a Debt Collector, it means your creditors have written the debt off and won't bother you any more; since they don't care, neither should you.
MONEY
The Debt Collector will tell you more lies than a salesman in order to get you to part with your cash right there on the spot. Nothing you say will make any difference except "No." Be firm and tell him to deal by correspondence only, then shut the door in his face. If he puts his foot in the way, shut it harder. If they call you by phone, repeat that you'll deal only by letter and hang up. Do not bother trying to reason with them; what to you is a stressful encounter is a daily occurrence to them and they are very hard-nosed. They cannot be moved by pity; tell them you will deal with it by post and that is the end of the matter.
To turn the tables, ask what they will settle for and then get that figure in writing. If he says he can't contact you by letter, he's lying; these companies have offices which naturally have printers and phones. Asking how much they will settle for could wipe out a huge chunk of your debt right there on the spot (don't make him an offer, let him give you the figure).
Do not give the Debt Collector money on the spot, no matter what he says or does; he will behave like a dog with a bone, and you should do the same. Give him a repetitive mantra; “No, you can't come in. No, I can't pay you now; have your office send me a letter. No, you can't come in. No, I can't pay you now; you'll have to send me a letter. No, you are not getting any money now…”
Remember that your rent, food, electricity, medical bills, etc, are more important than your credit card bill. Ultimately, keep the encounter short, give him nothing, instruct him to contact you by mail and shut the door firmly in his face. He might wait around awhile, but he has other people to harass and he'll eventually have to leave. If he hangs around and interferes with your day, consider calling the police.
LETTERS & CORRESPONDENCE
If a debt collection agency is writing to you, write back. Again, ask them what they'll settle for. Give them terms that you can honour, tell them when and how much you can pay; the objective here is to avoid the debt collector, not the debt itself. So long as they are writing to you, they are not taking you to court or sending thugs to your door, while maintaining a correspondence is clear evidence of your intent to pay and will delay court action.
If you're so seriously strapped that you can't afford a dime, giving them the run-around will eventually work, because the agency will simply sell your debt to someone else, who may or may not come knocking in a few months' time. Remember that your debt is in fact an asset that funds an industry; if you are too much hassle or simply can't pay, they'll make their money by selling the debt. There are collection agencies out there that make a living brokering debts without ever trying to collect; they just buy and sell debts between themselves.
So, three things you should never give a Debt Collector; no fear, no guilt, no money. Shut the door in his face, hang up the phone, deal by letter and dictate your own terms; you will either pay the debt or they will give up and leave you alone.
