No one intends to pay their bills late. However, failing to pay your bills on time may result in debt letters being sent your way. Debt collection letters are sent to help creditors document their efforts to collect a debt before going to court. You need to know what your options are if you ever receive a debt collection letter from a creditor or collection agency.
What A Debt Collection Letter Must Contain
A debt collection letter is just another way to get in contact with your regarding a debt. Therefore, the rules your creditors must abide by are the same. Any communication must include the name of the company who is contacting you.
Your creditors must list the proper balance owed on your debt. The monthly payment you owe must also be accurately represented. Your creditors cannot tell you $1,000 is owed when your monthly payment is only $300 a month. A debt collection letter should also state any other penalties being assessed to you.
Contact information should be provided for you if you wish to speak to your lender. Most creditors simply want to hear from you regarding the late payment. Explaining a financial hardship, such as a recent job loss, should be a sufficient reason.
Never Ignore The Past Due Letter
The worst thing you can is to ignore the letter. Your creditors have sent a bill collection notice because your debt is most likely valid. Even if your debt is not valid, you should still try to resolve the situation. Wage garnishment is not out of the question if you don’t communicate with your creditors.
Contacting your creditors also gives you a chance to point out any discrepancies that you find on the notice. Lenders often times forget to apply payments to your account. You might not even owe the money they claim you do. Providing evidence that the bill was paid should be able to get you off the hook if a mistake is made.
If the debt is valid, you should start making plans to pay it off. A debt settlement may be in the cards for you. Your creditors know you are having a hard time paying your debts. No one voluntarily decides to stop paying their bills. See what kind of offer you can work out with your lender.
Don’t Panic Despite What The Letter Says
Don’t automatically assume your life is over if you get a threatening debt letter. Some debt collectors will claim that the IRS will look into your finances if payment is not made. Other common threats include wage garnishment or placing liens on your property.
The IRS does not really care about your debt issues as long as you are preparing your taxes in a truthful manner. Your creditors are not going to pursue liens or wage garnishments because they take too long to execute. Time and money spent trying to chase you down just isn’t worth it to most creditors.
Contact a debt relief service if you need help with paying off large debts. Talking to a debt lawyer may also provide you with any assistance you need. Coming up with a rational plan to pay off your debt should be your first thought when getting a debt letter.
Dealing with debt collectors is never easy. It doesn’t matter if they contact you by phone or by mail. Just knowing that a creditor is on your trail can be stressful. The good news is you can solve your problem by communicating any financial issues you currently have. Some sort of deal should be worked out that will help you. Get credit card debt relief from DebtConsolidationUSA.com to help with debt collection agencies and debt collection letters. Call us to speak to a representative today.