1. DEBT RELIEF

How to Deal with Debt Collectors

Saving Your Sanity: How to Deal with Debt Collectors
BY Maurie Backman
 Updated 
May 29, 2025
Key Takeaways:
  • The right strategies could help you deal with debt collectors with less stress.
  • Get as much information from your debt collectors as you can, including the name of the original creditor and the date you incurred the debt.
  • Learn your rights as a consumer so your debt collectors don’t abuse or take advantage of you.

When you owe money, it's not unusual for your debt to be assigned to a debt collector. Once that happens, debt collectors might start contacting you on a regular basis in an effort to get paid.

But dealing with debt collectors can be very stressful. Some debt collectors might use intimidating tactics to try to get you to pay your debts when you can’t afford to. And worse yet, you may get contacted by debt collectors for money you don't even owe.

That’s why it’s so important to know how to deal with debt collectors. Here is what you should know if you’re tired of picking up the phone to find debt collectors on the other end of the line.

Verify that You're Dealing with Legitimate Debt Collectors

When you get a call from a debt collector out of the blue, you may not recognize the name. That's normal, and it doesn't mean it's a scam. But it's important to verify that before you do anything else. 

Once a debt collector contacts you, ask for the company name, mailing address, and phone number. Also ask for the debt collector's license number, and then check it against the National Multistate Licensing System.

Figure Out if You Really Owe the Money

Once you've verified that you're dealing with a legitimate debt collector, your next step is to make sure you really owe the money they say you do. By law, debt collectors are required to provide you with certain information about your debt, including:

  • The original creditor you owe money to

  • The amount of your debt

  • The date you incurred the debt and amounts paid on it so far

  • The account number associated with your debt, if applicable

Once you get this information, you have 30 days to dispute the debt in writing if you think the debt collector has made an error. The error could be that they have the amount of the debt wrong, or that you never owed the money in the first place. 

Know Your Rights as a Consumer

Debt collectors are allowed to try to pressure you to pay your debts, but within reason. The Fair Debt Collection Practices Act (FDCPA) establishes certain guidelines for debt collectors to follow so they don’t overstep. It’s harder for a debt collector to overstep the boundaries if you know your rights as a consumer.

For one thing, debt collectors aren't allowed to call you before 8:00 am or after 9:00 pm. They can't call you more than seven times within a seven-day period. They can’t call you again within seven days after discussing your debt with you by telephone.

Debt collectors also can't:

  • Contact you at work if you tell them you're not allowed to get calls there

  • Contact you via email or text message if you tell them to stop

  • Message you privately on social media if you tell them not to

  • Threaten to hurt you if you don't pay

  • Threaten you with jail time

  • Use profane language when discussing your debt

  • Lie about the debt you owe

  • Say they’re suing you if they really aren’t planning to yet

  • Pretend to be law enforcement or a government agency

It's important to keep detailed records of communications with debt collectors. If your rights are violated, don't hesitate to file a complaint with the Consumer Financial Protection Bureau (CFPB).

Try Negotiating if You Can't Pay Your Debts in Full

It may be that you owe the debt. But if you can't pay in full, you could try negotiating with your debt collectors

A debt collector may be willing to accept a reduced payment if it means recouping money sooner rather than later. Get any agreement in writing so your debt collector can't accuse you of failing to fulfill your financial obligation in the future.

Seek Outside Help

If you're feeling overwhelmed by the debt collection calls that keep coming your way, or the debt collectors you're dealing with aren't willing to negotiate with you directly, then it may be time to seek outside help. And you have a couple of options.

One option is to contact a professional debt settlement company and let them try to negotiate a settlement on your behalf. Another option is to contact an attorney to discuss your rights and options. An attorney might recommend bankruptcy if they don’t think you’re a candidate for debt settlement

Bottom Line

Knowing how to deal with debt collectors could make a stressful financial situation more manageable. And remember—you don’t have to deal with your debt alone if it’s too overwhelming. There are resources you can turn to, like debt settlement professionals, who can help you take control of your debt so you can move forward.

A look into the world of debt relief seekers

We looked at a sample of data from Freedom Debt Relief of people seeking the best debt relief company for them during November 2024. This data highlights the wide range of individuals turning to debt relief.

Credit Card Usage by Age Group

No matter your age, navigating debt can be daunting. These insights into the credit profiles of debt relief seekers shed light on common financial struggles and paths to recovery.

Here's a snapshot of credit behaviors for November 2024 by age groups among debt relief seekers:

Age groupNumber of open credit cardsAverage (total) BalanceAverage monthly payment
18-253$9,011$282
26-355$12,647$390
35-506$16,172$431
51-658$16,725$529
Over 658$17,047$499
All7$15,142$424

Whether you're starting your financial journey or planning for retirement, these insights can empower you to make informed decisions and work towards a more secure financial future

Personal loan balances – average debt by selected states

Personal loans are one type of installment loans. Generally you borrow at a fixed rate with a fixed monthly payment.

In November 2024, 44% of the debt relief seekers had a personal loan. The average personal loan was $10,718, and the average monthly payment was $362.

Here's a quick look at the top five states by average personal loan balance.

State% with personal loanAvg personal loan balanceAverage personal loan original amountAvg personal loan monthly payment
Massachusetts42%$14,653$21,431$474
Connecticut44%$13,546$21,163$475
New York37%$13,499$20,464$447
New Hampshire49%$13,206$18,625$410
Minnesota44%$12,944$18,836$470

Personal loans are an important financial tool. You can use them for debt consolidation. You can also use them to make large purchases, do home improvements, or for other purposes.

Tackle Financial Challenges

Don’t let debt overwhelm you. Learn more about debt relief options. They can help you tackle your financial challenges. This is true whether you have high credit card balances or many tradelines. Start your path to recovery with the first step.

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Author Information

Maurie Backman

Written by

Maurie Backman

Maurie Backman is a personal finance writer with over 10 years of experience. Her coverage areas include retirement, investing, real estate, and credit and debt management.

Frequently Asked Questions

What is the FDCPA?

The FDCPA is the Fair Debt Collection Practices Act. This is a federal law that governs how a debt collector can communicate with you about a debt. It prohibits debt collectors from harassing or threatening people in their efforts to collect money. For example, debt collectors may not contact you more than seven times within a seven-day period. They are required to provide information about the debt they claim you owe, and they may not continue to contact you until they’ve provided that information. 

How can I file a complaint against a debt collector?

If you think your rights have been violated under the FDCPA, you can contact the debt collector and ask it to stop, or you can sue it in court. You can also submit a complaint online with the Consumer Financial Protection Bureau, or contact your state’s attorney general.

How can debt collectors contact you?

Debt collectors can call you between 8 a.m. and 9 p.m. unless you allow them to call you at other times. However, they are not allowed to harass you. If you’re getting multiple calls each day, or if you are getting threatening calls, tell the debt collector you know your rights, and report the collector to your state’s attorney general.