As ironic as it sounds, debt collectors are also highly affected by the bad shape our current financial situation our nation is in. It’s true that delinquent unsecured debt accounts have skyrocketed as the productivity of several industries and businesses plunged but the huge amount of people who lost their jobs can only mean one thing for debt collectors: not a lot of people will be able to make plans to settle debts.

This is why debt collectors, more than ever, are willing to negotiate with indebted consumers – as incredible as it seems.

This is very fortunate as there have been numerous stories of people paying off their debts ten cents on the dollar, mainly because they could come with a certain amount of money to pay off the debt collector. These debt collectors apparently no longer refuse partial settlements especially since the housing industry has taken a huge blow from the recession. Without the real estate industry boom, people no longer have easy access to home equity, making it impossible for a huge number of consumers to pay off their debts in full.

Although negotiation can’t be any further from a consumer’s mind upon learning that it’s the debt collector knocking on the door or waiting on the phone, consumers should reconsider before ignoring these means of contact. Now that a huge majority of collectors have opened up new settlement arrangements, consumers can relax without fearing harassment and/or embarrassment from talking to a debt collector.

One main thing to remember, however, is to treat the first contact more like a fact-finding session. Here are 3 starting questions that consumers should ask collectors upon hearing from them:

1. Collector’s name and contact information.
2. Name of the collection agency and its address.
3. The creditor’s name and the total amount that you supposedly owe.

Make sure to jot down the time and date/s when you conversation with the collector happened for documentation purposes. Be polite but firm when asking these questions and know that legitimate collectors will be more than happy to provide you with this information. Collectors who go overboard and start threatening or harassing you are directly violating the Fair Debt Collection Practices Act, which empowers consumers to sue unethical collectors.

Negotiating with your debt collector might seem a daunting task but if handled well and properly, you might be well on your way to finally settle your debt.