It can be quite nerve racking when the bill collectors are calling and sending demand notices, however you can handle it. There are ways you can protect yourself and also ways to properly handle your debt collectors.

There is an act that was designed just for individuals that are trying to cope with the overzealous bill collectors. The Fair Debt Collection Practices Act is a guideline that must be followed when a debt collector is attempting to collect payment on a debt. It is illegal for a debt collector to call a residence before 8 a.m. and after 9 p.m.. They are also not allowed to threaten the garnishment of wages or harass you with phone calls after you have asked them to stop calling you. For more information go to => www.ftc.gov/os/statutes/fdcpa/fdcpact.htm#801.

If you have an answering machine, you can screen your phone calls before you answer them. Adding anonymous call blocking to your phone line can also help from receiving the unwanted collection calls. Well, at least from having to talk with the person on the other end. Should you decide to pick up the call, you can ask that the debt collector to stop calling you. Once you have stated to them that you don't want any further phone calls, legally they have to stop the phone calls to you.

Before you take some of the more drastic measures, you should consider making arrangements with the company to pay off the debt. In many cases, the collector is authorized to reduce the amount owed in order to collect the money. The calls from the agency will cease if you can reach an understanding on payment arrangements.

Keep a log of all calls between yourself and the collection agency. If you agree to any form of payment, it should be recorded on paper and it should bear both your name as well as the other party's name. Try your best to keep the agreement you have made, if you are unable to keep it notify the company as soon as possible. If you have requested the collector to stop calling you, you can record any phone calls with them. Be sure you alert them to the fact that the calls are being recorded. This is usually very effective in making them cease the harassing phone calls.

In most cases, you will be able to negotiate the amount of money you will be paying off. The collection agency gets a commission off of the amount of money they successfully collect. So, in many situations they will accept a smaller payment in order to collect any money. In their eyes, any money is more than nothing.

If you agree to a smaller payment, be sure to request that there should be no further negative marks placed on your credit report. Also, be instant that they promptly report the payments made as well as adjusting the amount that is owed on your credit report.

After you make an initial good faith payment, you should receive an agreement. The contract should reflect the amount owed as well as the specific terms of agreement. Send as little of a first payment as possible. This will insure that they will keep their end of the agreement and hold true to the contract.