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

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

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

Finance Blogs
best blogs