Collections Agencies

by Debbie Vasen | More from this Blogger

30 Apr 2008 04:53 PM

In our "do it yourself debt reduction" series, I wanted to end with a worst-case scenario. If your debt problems have become so horrendous that you are being hounded by collection agencies, it is time to get serious.

First, ask yourself some hard questions. How did I get into this mess? Can I change some things in my life to get back on track? Do I have some addictions or weaknesses that would prevent me from tackling my debt problems myself? If you are truly desperate, it is time to wise up and ask for help. If you think you can get up to bat and start fresh, then give this do it yourself plan a chance.

Whatever you do, don't keep ignoring the problem. I have personally known individuals who change their phone numbers to prevent the collection agencies from calling. This is not a solution. You can't keep running away.

No matter how bad it is or how long you have been hiding, instead, start today by calling them. Get in touch with every collection agency that has been hounding you. Begin the process of working with them.

If you don't pay a loan or fine, often the company will give up sending you late notices and just turn your account over to collections. These agencies job is to get you to pay. They receive a large portion of the amount you owe as reward for their efforts. Most of these agencies know that they may never collect on these accounts. They are often very willing to negotiate, in order to see some financial gain from their hard work.

Just having a debt turned over to collections is bad for your credit. So, if you have any accounts that are threatening to send your debt to a collection agency - talk with them. Find a better solution up front. If you already have accounts turned over to collections, talk to the agency. Work up a solution that is acceptable with your budget. Negotiate a payment plan or balance reduction.

Then, once you have come to some resolution - request that the agency make a note on your credit report. Granted, the negative score will continue to stay on your report, but it will still look better if you have been working with them to resolve the problem.

Related Articles:

*DIY Debt Reduction - Get Rid of Stuff

*DIY Mortgage Repair

*DIY Debt Reduction - Multiple Creditors

Learn more about Debbie Vasen

Debbie Vasen is a published web content editor and writer, as well as a freelance writer for various print publications. In addition to blogging at Families.

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rhinog (71) 06 May 2008 04:34 PM

I am certainly going to look into these ideas since I need some help in getting out of debt myself. I am not sure what happened to get me so deep but I know that somewhere I will find help. These are certainly a good place to start. http://www.workathomecooperative.com/destination.htm" target="_blank">click here

Debbie Vasen (1072) 07 May 2008 11:04 AM

Rhinog,

Thanks for your comment. Debt is a bit like gaining weight... it tends to sneak up on you. Then before you know it... you are in over your head.

Like anything, the first step is to start digging your way out. Definitely use some of my DIY hints to get you started. I also got in over my head in bills years ago, and now I am debt-free. You can do it too!

archiebess (15) 30 May 2009 08:24 PM

Some good advice, Debbie. The problem is, many people are addicted to their credit cards. Cards can be useful at times but only if a person has self control with the spending. If not, I recommend putting them to good use in other ways. With enough of them, you can create a very unique conversation piece. Take a look at the volcano at www.ArchieBess.com and perhaps you will come up with other ideas for credit cards.