You need to have a plan, if you want to get rid of those incessant calls at odd hours or innumerous letters from the debt collectors. In this case, your first priority lies in developing a stratagem that is financially sensible and effective. For this, you’ve got to have a handle about your monthly budget and the money that you easily commit to pay off the collection accounts.
If you have more than one account in collections, then it is important to note that not every debt collector is the same.
Facts about the debt collectors
Here are some of the facts that’ll help you to handle multiple debt collectors as well as collection accounts with ease:
- You can work with a third-party debt collector – Debt collection being a large industry, the type of debt and debt collectors you have holds a lot of importance. However, you can resolve all your outstanding bills (utility bills, medical debts, and so on) depending on those two factors.Debt collectors working with your credit card issuer directly are usually larger contingency collection agencies. It is their job to call you and to send you collection notices in order to collect the remaining payments.
This is done with the hopes of getting paid on the basis of the amount they’ve been able to get you to pay, say for example, a contingency reward of about 15 percent of the outstanding balance collected from you by them.
- You may also approach the original creditor – You can, many times, work out some kind of repayment plans by getting in touch with your original creditor directly. Or else, you may prefer working with a non-profit credit counseling agency.Still, in case of missing credit card payments for more than six months or so, contacting your creditors will possibly result in being re-directed to a third-party debt collector. You must contact your debt collector, if your creditors say that they cannot work with you any longer, have charged off your account and didn’t even sell off your delinquent account to a bad debt buyer.
Therefore, your ability to have your outstanding debt issues resolved rests on the type of debt as well as debt collectors you have.
- Making monthly payments isn’t the panacea – In a lot of cases, if you can’t or are unable to commit yourself to a monthly payment, then debt collectors have the permission to accept settlement offers. However, the amount of debt that you can settle remains a contested issue. To have your debts settled by negotiating for a reduced repayment amount, the amount of money that you can save should meet the debt collector’s own guidelines.
Moreover, you must have the settlement amount ready with you to pay in a single lump sum or within a short span of time.
According to a lot of debt experts, the process of negotiating for a reduced repayment amount is quite simple. In the event that your settlement offer has been rejected by a debt collector, then try calling them once again at the end of the month. This is the most suitable time to close a settlement deal since a lot of debt collectors agree to what debtors offer just to meet their own business target around this time of the month.
Author Bio – Billy is a financial writer associated with the Oak View Law Group. He loves to share his personal finance insights on a host of social media platforms and so, to know more about his various online activities you can visit here: http://www.facebook.com/OVLGroup.