Free Debt Management & Bankruptcy Articles

Professional Authors - Professional Articles

Debt Management Advice – Dealing with Debt Collectors

The last thing you want when you are worrying about money problems is people coming at your door or calling you, pushing you to pay off your debts. Of course the best advice would be to not let it get this far. Try to negotiate with your original creditor and work out a payment schedule that is acceptable to both of you before a third party comes into the picture, bringing along a lot of extra costs.

However if you find yourself in over your head, dealing with a debt collection agency may be unavoidable. If this is the case in your situation, prepare yourself for the ride and educate yourself about the rights that you have. There are regulations about how a debt collector is able to collect money from you. Threats, harassment and abusive language should not be accepted, and needs to be reported.

You need to go by the book, but so do they. You don’t have to be abused simply because you are having money problems. It could also be that the debt they are chasing you for is not even yours, so when you get a phone call or a letter from a debt collector, make sure that you have something in writing that you can thoroughly check before responding to the demand.

The most important thing to do is to keep your head out of the sand and try to work through the problem with them. You don’t want to live your life ignoring their phone calls and being scared of opening your mail. Answer the phone calls, open your mail and start the dialogue. Debt collectors and creditors in general are more open to negotiation if you take an active position and show that you really want to solve the problems. Once you are negotiating with the debt collector you need to ensure that you document everything.

Keep recordings of phone conversations, any written correspondence (keep a copy of anything you send or receive) and, importantly, when you come to any agreement about repayment, you must get it in writing. When you are sending mail out to the debt collectors or original creditors you should certify or register your mail, so you have proof of sending the letter in case it is lost in the mail or its receipt is disputed.

If you do not respond to correspondence or telephone calls from debt collection agencies, you will only win yourself a reputation as somebody who is trying to avoid facing up to your responsibilities. And in the long run, these agencies won’t just “go away”. Before you know it you will be in court, which is something best avoided.

If your indebtedness has reached a point where a judge has to decide, matters have been taken out of your hands. Unless your dispute is for a small amount of money, you will need to engage a lawyer to be competently represented, and it is likely that at this point, lawyer’s fees may well not be within your budget. But in saying that, if your case has come before a court, make sure that you show up (with or without a lawyer).

It may be that in cases of genuine financial hardship the court will appoint a lawyer to help you understand your rights and responsibilities, for no cost. But you do have to be present in the courtroom, because if you don’t show up, the creditor will definitely win and you will get stuck with all the legal fees as well.

Taking all this into consideration, really the best thing you can do is to avoid debt collectors all together. Dealing with these agencies can take a lot of your energy and put a lot of pressure on your shoulders. If you show your original creditor good will by contacting them and negotiate your payments, it is more likely they will grant you some good will too, and deal with your directly rather than engaging debt collectors.

Post has no comments.
Post a Comment

Captcha Image

worksheet borrower emergency savings account careful handling security credit score credit limit finances management program own money loan agents great budget ideas gambling debts payday loan down payment building debts management advice debt consolidation loans check card insurance management tips mortgage payments unexpected expenses debt free less money child support debt injury investing order report budget spend money tracking money government assistance initial research children saving overspending prioritizing debt collection agency illness bankruptcy savings insurances implement a budget good credit record original creditor car loan household items invest money seperate accounts budget categories software debt management advice monthly payment younger children reduce debts budget sheet extra payments credit card company debt debt payment period account fees teaching children finance phone calls good budget credit reports loans bank debt relief credit card debt installment plans court appearance medical bills credit companies high interest rate full details fly-by-night managing debt learning experience telephone bills debt management tips installment plan cash card checking account debts children budget rent payments losing a job assets borrowing home debts credit card traps money credit card help unemployed handling money spending debt collectors back support interest payments lending companies lending company Chapter 13 credit repair repay loans cancer piling debts more income take control of debt common debt debt relief agency domestic support credit credit rating negotiation interest rate save money visualization allowance budget ideas school jobs payment frequency utility payments credit card borrow money financial education part time job loan companies become free credit scores credit checks debt consolidation budgeting house loan credit line debt problems whole family hobbies trusted friends liability debt consolidation medical debt savings account introductory offers debt management mistakes restrict spending income job loss credit report loan amount cash live within means discounts debt programs repay personal finance unreasonable expectations monthly bill monthly budget secured loan regain control bills paycheck info asset info debit card interest rates purchase protection short sale debt traps good credit rating paycheck stop harassment ongoing bills control spending classify bills checks paying out debt credit company payment behavior professional understanding home equity filing bankruptcy education honesty past bad debt family budget new job total balance ill health good credit account charges unsecured loan credit accounts deals in writing pay off bill help credit history get out of debt child support chapter 7 rebuild good credit extra money groceries home equity loans social services loss of income repayment plans debt management debt settlement low interest hospital creditors purchases overbearing bills legal action personal finances credit bureaus loan harassment deb consolidation need money doctors common debt traps medical bill specific budget categories bank accounts debt company expenses debt solution account interest charitable organisation sickness interest tax info family assistance saving money bad financial decisions cable bill your rights lose your job comfortable living good debt pay off debt second job debt collector help mortgages credit cards consumer lawyer home equity child spending taking responsibility overcharging paying bills bad debt monthly payments salary live your life great budget internet loan help with debt negotiate understanding credit card companies buying a house losing your job receipt bad debt management gambling problem Consolidation Company candidate making payments modified payment plan financial security flat broke saving payday loan companies

Copyright 2016 - Free Info Site Enterprises
Privacy Policy  |  Copyright Policy  |  Website Use Policy  |  Non Endorsement Policy  |  Contact Us  

Finance Blogs
best blogs