Even collection agencies should be reasonable

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Dear Debt Adviser, A collection agency is asking me to pay a debt. I asked them for a payment plan but the agency wants the full amount of the debt. I tried to get a loan to pay them off but was denied. I have decided to give up my car so I will have that extra money to pay on the debt. I informed the collector of this but the agency wants all the money. I'm trying to eliminate different things from my budget, such as cable and my cell phone, so I can make this debt good. But how do I make the collector understand that I am trying to pay this? I don't know where to go from here. -- EstherDear Esther,You've probably heard the expression "you just can't please some people." Your collector fits this category like a glove. I want you to stop worrying right now about pleasing this maniacal collector. Instead, step back and get some perspective. You are doing all the right things. You are communicating with the collector and letting the agency know what you can do. All you can do is your best to make good on the debt, and you are doing that. The collector is the problem here, not you. You are doing your best, but the agency wants more. Every collector I have worked with wants a "promise to pay," and is willing to establish a reliable "repayment schedule" before moving on to the next challenge of the day. Having offered all of the above and being told it isn't enough tells me you are dealing with a nonprofessional. I recommend making an appointment with a qualified credit counseling agency. There, your counselor -- an unbiased third party -- will discuss your financial situation and your options for repaying the debt. The counselor also will discuss how best to proceed with a collector who seems to enjoy making you miserable more than getting a payment. The counseling session will accomplish two things. First, you will talk with someone who is nonjudgmental and who won't make you feel bad. Second, you will get some much-needed perspective and advice. I'm concerned about your plans to give up the car. Unless you could sell the vehicle and make money or break even, it may not make sense on any level. However, if you owe less than the car is worth and don't need it to get to work, it may make sense to sell it is part of a financial plan you believe is in your best interest. Base the decision on your current financial situation and future goals, not on trying to please a stranger who doesn't have your best interests at heart. Examining your monthly expenses, such as cable and cell phone service, is a good idea for anyone who needs to find extra money in the budget. Don't cut so severely, however, that you are miserable. You are already under enough stress dealing with this collector; you don't need any additional discomfort in your life right now. For the immediate future, the next time the collector calls, let him or her know you are doing everything you can. Tell the agency the amount you can afford to pay monthly and state that it is the best you can offer. If the collector refuses to accept that, ask to speak to a manager who may have the power to accept your offer. You might also want to review your rights under the Fair Debt Collection Practices Act. If the agency decides instead to turn the bill over to legal counsel, there is a good chance it will accept regular payments representing your best effort. Collection lawyers are a tough but sensible lot. The bottom line is that you can only do what you can do. You are willing to make good on the debt. Somewhere along the line, a creditor, collector, manager, lawyer or judge will want to know why a collector is wasting valuable time on a matter that could have been resolved easily by accepting your best effort. (Steve Bucci is president of Money Management International Financial Education Foundation. Visit www.moneymanagement.org for additional debt advice. If you have a question for Steve, e-mail debtadviser(at)bankrate.com. The Debt Adviser is a weekly feature of bankrate.com. For more stories visit scrippsnews.com)