Does making a partial payment stop debt collection calls?

Between today's issues with high inflation, elevated interest rates and increasing consumer goods costs, a lot of Americans are feeling the strain that this economic environment is putting on their budgets. And, with finances stretched thin, more borrowers are falling behind on their monthly debt payments. When a debt goes unpaid long enough to land in collections, though, the pressure to do something about it can build quickly. At that point, the collection calls may become a regular disruption, and you're likely looking for ways to ease the pressure.

That can make the idea of sending in a partial payment seem like a reasonable middle ground. You may not have hundreds or thousands of dollars available to resolve the debt, but paying $50, $100 or another manageable amount at least puts some money toward the balance. And if the debt collector sees that you're willing to pay, you might expect the calls and other collection efforts to slow down or stop while you work on paying down the rest of the balance.

But making a payment and changing how a debt collector pursues the remaining balance aren't necessarily the same thing. So, before sending money simply to get some relief from the debt collection calls, it's important to know what that partial payment may — and may not — accomplish.

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In most cases, simply making a partial payment on a credit card or another type of debt won't automatically stop a debt collector from calling you. Unless you've paid off the debt, entered into an agreement that changes how the debt collector will communicate with you or exercised certain rights regarding collection communications, the remaining balance can generally still be pursued in that manner.

For example, let's say you owe $5,000 on an account in collections and send the collector $500 without negotiating any other terms. That payment may reduce what you owe, but it doesn't necessarily create a new payment plan or require the debt collector to suspend its collection efforts. The debt collector could, and likely would, continue contacting you about the remaining $4,500 balance.

That doesn't mean debt collectors have unlimited freedom to call, however. Federal rules restrict how frequently debt collectors can contact borrowers by phone. A debt collector is presumed to violate federal law if it places more than seven calls within seven consecutive days about a particular debt or calls within seven days after having a telephone conversation with you about that debt. Other patterns of repeated or harassing calls can also violate federal law.

You also have the right to tell a debt collector to stop contacting you. If you send a written request instructing the debt collector to cease communications, they generally must comply, aside from limited communications such as confirming that contact will stop or informing you about certain actions it may legally take.

But stopping the calls and stopping the collection process are two different things. A cease-communication request doesn't erase the debt or prevent other collection measures, including a lawsuit or negative credit reporting when legally permitted.

And, there's another issue to consider before making a partial payment on an older debt. Depending on state law, making a payment or acknowledging that you owe an old debt can restart the statute of limitations for a collection lawsuit. The rules vary by state, though, so it can be important to determine the age and legal status of an old debt before sending money.

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What should you do if you can't afford to pay the debt in full?

If you can't pay off the entire balance, it may make more sense to determine what you can realistically afford and then pursue an arrangement that addresses the debt more comprehensively rather than sending an isolated payment.

One option is to negotiate directly with the debt collector to find a resolution. Depending on the circumstances, you may be able to establish a payment plan or negotiate a settlement for less than the full balance. If an agreement is reached, getting the terms in writing before paying can help clarify how much you're expected to pay, when payments are due and what happens once you've fulfilled the agreement.

And, other debt relief options may also be worth exploring if the collection account is part of a larger unsecured debt problem. With debt settlement, for example, a debt relief company typically negotiates with your creditors or debt collectors in an effort to reduce the amount you ultimately repay. That approach generally requires you to make a lump-sum payment to settle the account, but it can result in significant savings. 

However, it also comes with fees and can have credit and tax consequences, so debt settlement won't make sense to pursue for every borrower. If you're significantly behind and can't realistically repay your unsecured debts in full, though, it could provide a more structured way to address multiple balances, especially compared to making occasional partial payments.

The bottom line

Making a partial payment can reduce the balance you owe, but it generally isn't enough on its own to stop debt collection calls. If your goal is to limit the calls, federal law gives you certain rights. If your goal is to resolve the balance, though, you may need a broader strategy, such as negotiating a payment arrangement, pursuing a settlement or exploring other types of debt relief. Before paying an older collection account, it's also important to understand how a payment could affect the statute of limitations in your state. Taking those steps can help ensure that the money you put toward the debt actually moves you closer to resolving it.