One of the most stressful things about being in debt – sometimes even more than the amount you owe – is the debt collectors. The constant calls, letters, and demands can quickly rob you of your peace of mind.
However, if you have more than one account in collections, it’s useful to know that not all debt collectors are the same. In fact, you may be able to work with some of them as you seek to resolve your collection accounts.
At the very least, knowing more about how debt collectors operate can help you adjust your debt payment strategy. Below are some useful things to know:
Most debt collectors work under time limits
Most creditors impose a time limit on contingency debt collectors. In other words, debt collectors have to beat the clock when collecting on your debt. Otherwise, the original creditor can pull the account, and the debt collector loses their potential commission.
Some contracts can last for several months, while others can have a limit of 60 days before they are pulled. Is your collector pushing you hard to pay by a certain time? It’s probably because they will lose your account by that certain date. Knowing their motivation can help you prepare accordingly.
You can reach out to your debt collectors
Contacting people is one of the hardest parts of collecting a debt. People tend to avoid collections calls. However, you don’t always have to wait for your debt collector to contact you first.
If you’re ready to commit to paying, or you have payment ready, you can actually reach out to your debt collector.
You can find out who you’re dealing with by checking the most recent collection letters and calls you have received. Another way to verify is to call your original creditor and confirm which collections agency they’ve placed your account with.
You can explore other payment options aside from monthly payments
Some debt collectors are authorized to accept settlements if the debtor cannot commit to monthly payments.
You may be surprised by how simple it can be to come to an agreement to resolve your account. Keep in mind that it’s in the best interest of debt collectors for you to pay. That’s why a lot of them are willing to settle instead of not receiving any payments at all.
Some experts recommend calling around the last week of the month. This is when debt collectors find whether they are meeting their monthly quotas or not. You may be able to negotiate a more affordable agreement as they try to hit their targets at the last minute.
Having overdue accounts, especially several of them, is incredibly stressful. Add the pressure of debt collectors hounding you for payment, and it’s nearly impossible to get peace of mind as you try to get your financial affairs in order.
Therefore, it’s essential to understand who you’re dealing with in the first place. It provides a bigger picture of your debt. Knowing how debt collectors operate, as well as your options for working with them, can help you create a more effective debt payment strategy.
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