If you're trying to repair your credit yourself, doing so can seem like a full-time job.
But, it is worth it and can be done.
You don't need to use a credit repair service or other paid entity to do it.
One of the things that makes it so difficult to do though is dealing with debt collectors because they can be so misleading.
In the words of the infamous debt-free guru, Dave Ramsey, the way to tell when debt collectors are lying is when their lips are moving.
With this in mind, following are a couple of little-known tips for dealing with these nefarious professionals that can help make repairing your credit that much easier.
When Repairing Your Credit, Knowing When to Negotiate Can Save You Money Debt collectors want you to pay up - plain and simple.
This is always the end goal because like any other business, they're in the business of making money.
However, you have negotiating power when it comes to settling old debts.
And, the best time to negotiate with debt collectors is at the end of the month.
Why? Because most of the employees work on some type of monthly commission schedule.
This means that what they are paid based on the amount of monies they've brought in during a specific month.
What this means for you when trying to repair your credit is that if you negotiate with them at or near the end of the month, you have a better chance of paying less.
When Repairing Your Credit, Record Conversations with Debt Collectors This is the best record you can possibly have.
And, you do want to have records of your interactions with collectors when trying to repair your credit because you will most like speak with several reps over the course of many weeks (and sometimes months).
Many times, you will be told different things from different employees.
So, a recorded conversation can really come in handy if you ever have to go to court.
And, it can also give you more negotiating power at certain points in the debt negotiation process.
Note: You should know is that just over two-thirds of U.
S.
states permit you to secretly record conversations.
In the remaining states, you can only record a conversation with the other party's permission.
To get around this, notify the debt collector you're talking with that you will be recording your interaction with them.
This will do two things: (i) put them on notice and if they keep talking after you've told them this, then the law looks at it as them giving you're their consent (i.
e.
, implied consent); and (ii) it may keep them from trying to take advantage of you.
For, if they lie and you have proof of it in the form of a recorded conversation, you can take legal action against them.
Repairing Your Credit: Evergreen Tip Always, always, always get everything in writing.
Never send money until you have some form of a written agreement outlining what you and the debt collector have agreed to (e.
g.
, email, letter, fax, etc.
).
Credit Report Repair: 5 Things that Can Unknowingly Hurt Your Credit Score Learn five things that can hurt you when trying to repair your credit, and much more on how to go about doing it effectively.