What to expect when your debt goes to collections

Knowing your debt is sent to collections can be stressful. However, there is nothing to be stressed about. Many people miss out on payments every once in a while due to financial struggles. In such cases, the creditor can send your debt to a collection agency for faster recovery. When that happens, panicking or not claiming the debt won’t help. Instead, talking to the collectors and finding out a way to make payments is the better option.

Here’s what you should do when your debt goes for collection.

Don’t ignore the debt

When you get to know about your debts being sent to collection, avoiding collection calls would be your first instinct. It can be a big mistake, as the agency reserves the right to pursue legal action if they are unable to contact you for long. Talk to the debt collector and figure out a payment schedule to settle the debt. Collectors are professionals who are polite and helpful, so you don’t have to worry about being threatened or coerced.

Deal with the creditor

Usually, the creditor contacts you first when you don't pay the invoice before sending it to collections. Hence, if you talk to the creditor first and negotiate the debt beforehand, you may not have to deal with the collector at all.

Ask the debt collector to stop contacting you

If you are tired of debt collectors’ calls and emails, you can ask the debt collection agency to stop contacting you in writing. Once the agency receives your request, they are legally bound to uphold it. After that, they will ensure they won’t contact you anymore and will inform you that they are taking legal action. An agency not reaching out to you does not wipe away your debt, however. You still have to pay up.

Consider negotiating the debt

Any creditor would want the full amount and interest back when it comes to settling a debt. However, when choosing between nothing and something, everyone would pick something. That’s why creditors sometimes will agree to negotiations. Before negotiating, establish how much you could pay at once or in installments. Then arrange to make payments feasible for you, and don't leave the creditor with too much loss.

Consider disputing the debt

If at any point you feel you don’t owe the money, you can always dispute the debt. Ask for proof that shows you owe the money in a document format and have it sent to your email. You don't have to pay if the collector cannot provide proof of debt.

Think about hiring an attorney

If things have gotten complicated and your creditor has sued, the best option is to hire an attorney. An attorney can guide you through the trial and even help you settle things out of court.

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If we can be of any support to you with regards to your debt, please contact us where one of our experienced team members is on hand to provide you support.