Anyone that has received phone calls or letters from debt collection agencies knows that feeling of frustration. Once the phone calls start, you cringe every time the phone rings. Most people get depressed about debt collection agencies because they do not know how to deal with the problem.
The first thing to remember about debt collection companies is that you should not take anything personal. The collection company wants you to pay your debts. They are not passing judgment, and they are not making any kind of moral statement against you.
Credit collections is a business transaction on both sides. The agency wants to collect the money due, and you want to pay your debts. There is a way to make sure that everyone is satisfied and the proper actions are taken.
Don’t Avoid It
When the phone rings with a collection agency on the line, you need to answer the phone. When you get a collection letter in the mail, you need to act on it.
One of the biggest mistakes people make when it comes to debt collection agencies is that they try to avoid the agency in the hopes that it will go away. As long as the debt exists, the credit agency will be calling you to collect.
Another problem with avoiding debt is the various options collections agencies have at their disposal. If the amount you owe is substantial, then the credit collections agency may choose to collect in court. At that point, you lose all of your ability to negotiate.
Validate The Debt
If you receive a collections call or letter regarding a debt that you are unfamiliar with, then validate the debt before agreeing to pay it. You will need the collection agency’s mailing address and a contact name to send a validation letter to.
The validation letter outlines the debt being collected on and why you feel it may not be your debt. Mail the letter certified mail and ask for a signature to prove the company received it. You have 30 days from the first notification of the debt to ask for validation, so do it immediately after you receive notice.
The collection agency has 30 days to send you a copy of your original debt agreement and some kind of proof that the agency is allowed to collect on the debt. If you do not get the validation, then the debt collection process stops. If you do get validation, then you move on to the next step.
Negotiate The Debt
Once you have validated the debt, the next step is to negotiate a settlement. However, this is not something you want to do on your own. Debt collection agencies will try to get as much as they possibly can for the debt. If you do not have experience negotiating with collection agencies, then you will not get the best possible deal.
A professional debt settlement company has the experience to negotiate your debt and get it reduced. In some cases, a debt settlement professional can get your debt lowered by as much as 50 percent. In other cases, it may be more.
If you have more than one collections account, then validate all of them, and then turn them all over to the debt settlement expert. He will get you reduced balances and combine everything into one monthly payment for you to make your life easier.
It is not unusual for a consumer to get multiple collection notices on the same account. That is why you use the validation process. Another way you can help yourself is to keep track of all of the accounts you have settled with collection agencies so that you know if a debt has been paid or not.
The ideal situation is to pay all of your bills when they are due to avoid a collections process. But that is not always practical. The important thing to remember is that a collection agency is a business trying to get paid. If you allow a debt professional to deal with the situation, then you will get much better results.
We have years of experience in negotiating with collection agencies and getting debt reduced for our clients. We can help you to face your debt and take responsibility for it. The best course is to address your debt issues head on and pay your obligations as best you can.
Give us a call, and we will create a personal comprehensive financial analysis for you and review your outstanding collection agency problems to help you get the resolution you need.