12 tips for negotiating with debt collectors
By Lucy Lazarony • Bankrate.com

When you bargain with a debt collector, you're going head-to-head with a tough, professional negotiator. Following these tips can help you come out ahead.

Learn your rights.
When collecting a debt from you, a debt collector must play fair. For details, check out this consumer brochure on fair debt collection from the Federal Trade Commission.

A free consumer brochure on debt collection is also available from the National Consumer Law Center. Call NCLC's Publications Department at (617) 542-9595 and ask for a copy of What You Should Know About Debt Collection.

Many states have their own debt collection laws. For more information, contact the attorney general's office in your state. To find your state's attorney general, click here.

"When you know your rights, debt collectors know they can't get away with certain things," says Gerri Detweiler, author of The Ultimate Credit Handbook. "They're less likely to try aggressive tactics."

Prioritize your bills.
No matter what a debt collector says, an unpaid credit card bill is not the most important bill you have to pay this month. Providing necessities for your family comes first. These 16 rules will help you prioritize your debts.

"It does not make sense to put yourself in a position that you can't pay necessary bills," Detweiler says.

Estimate how much you can pay and offer less.
"Don't do anything you can't afford to do," says John Ventura, consumer attorney in Brownsville, Texas and author of the e-book Stop Debt Collectors Cold. "And don't do anything dangerous."

Avoid sending postdated checks to a debt collector or agreeing to automatic electronic payments from your checking account.

"Presuming goodwill on the other side gets people in trouble," Ventura says.

Don't tell them your life story.
"Don't go into a lengthy explanation of why you can't pay," Detweiler says. "They don't have a lot of sympathy. This is what they do for their job. They hear down-on-your-luck stories day in and day out."

Keep private information private.
Don't give a debt collector personal information such as where you work, where you bank or your checking account number.

"Say as little as possible and stick to the facts," Detweiler says.

Stay calm and focused.
No matter what a debt collector says, keep your cool and stay focused on the negotiation.

"The more in control you sound and the less you fall apart, the more likely you are to get what you want out of the negotiation," Detweiler says.

Tape the call if you can.
Flicking on a tape recorder is a great way to keep a debt collector in line. Plus, you get a record of the call.

Thirty-five states and the District of Columbia allow you to secretly tape your phone conversations. For a listing of states, check out this chart.

In the other 15 states, you can tape with the other party's permission. And if you tell the debt collector you are going to tape and he or she keeps talking, that's considered giving permission.