Debt Collection Basics Part Six: Advice For Debtors

Posted on August 7, 2010
Filed Under Financial Education | Leave a Comment

In the first five articles on my seven article series on debt collection, I wrote about what a collection account was and why it benefited a creditor to send an account to collections. I spoke about the data companies will collect and use and tactics, both illegal and legal that the collection companies will use to collect debt. I mentioned that third party debt collection agencies are governed by federal and state law and overseen by the federal trade commission.

I gave you advice to keep in mind if you are on the phone with a debt collector. I reminded you to keep your cool and to call the debt collector back if you begin to feel flustered. I let you know that a debt collector is constantly trying to create a sense of urgency and will ask you why you can’t agree to their terms today.;

After you and the debt collector have worked something out, I told you to confirm your payment plan and to verify the fact that you paid in writing. Do this by sending verification by certified mail, return receipt requested so you can get a receipt as proof that the agency received your verification.

I gave you some advice for the future which was to stay on top of future payments and call your creditor once you have missed one or two before it will be sent to collections. It will be much less stressful to just get this over with than to deal with a collection agent. I told you that in many instances it is easy to predict when you will not be able to make a payment and in these cases it is always a good idea to call the creditor in advance if there is some way to work something out. Many times if you call in advance you won’t suffer any penalties or late fees.

And, as usual, to cut back on stress, improve your personal finances and keep a decent credit score, do not buy what you cannot pay for now. Unless you are in a dire situation where you need food, water, heat or shelter, whatever material item it is that you feel you cannot live without can be placed upon the back burner for now.

Rapid Recovery Solution is an Action collection agency. Mallory Megan writes about collection agency software and commercial collection agencies. Unique version for reprint here: Debt Collection Basics Part Six: Advice For Debtors.

Comments

Leave a Reply