Alternatives to Paying the Collection Agencies

How to deal with debt collectorsIt can be truly unpleasant to deal with collection agencies. A lot of people wonder how their debt became the business of a collection agency in the first place? In most cases, the creditors such as credit card companies or some other organization you have received services from, send the debt to the collection agency after four months of non-payment. If the creditor tried to contact you to seek payment in this period and failed to do so he will send the case to a collection agency. Dealing with collection agencies is so difficult that many times the consumers do not pay upon principle. It is more humiliating than staying in the debt. Here are some alternatives.

1. Negotiate with the creditor: After you have received a notice from the collection agency, get in touch with the original creditor immediately. Most collection agencies will identify the creditor that placed the case with them. Even when there is no name of the creditor in the notice, the collection agency has to provide the identity of the creditor if you ask them. Rather than paying the collection agency immediately, get in touch with the creditors and inquire whether they still own your debt. Or have they sold it to the collection agency? If they still own it, you can try and negotiate a settlement. You may discuss the alternatives of installments or one-time lump sum payments. In case the creditor has sold it to the agency, try to get them to buy it back. Let them know that you are ready to pay to the best of your abilities and prefer to deal with the creditors.

2. Use bankruptcy to discharge the debt: You can discharge several kinds of consumer debts in bankruptcies. If you are worried about paying the debt, get in touch with a bankruptcy lawyer and find out if you can get rid of the debt by filing for bankruptcy. Bankruptcy doesn’t mean that you can make the child support payments and tax obligations disappear. You will still be required to pay for the alimony even when the children have become adults. However, if you can discharge other debts, it might free up some finances that can be used for child support and tax debts.

3. What about paying the collection agency and getting it over with? When you have sufficient funds to settle the issue of debt, and the creditor refuses to buy back your debt, it is a good idea to pay the settlement amount. Paying the collection agency will be a good idea even when the debt is lesser than the amount you owed originally. Ensure that you ask for a letter from the collection agency that certifies that you have successfully settled the debt. This will allow you to show the proof to the credit bureaus in case of a dispute.

Whether you should settle the debt with this collection agency or not, depends a great deal on your circumstances and the position of your debt. If you reside in Tampa, Clearwater, Port Richey, Lakeland, FL area, get in touch with Weller Legal Group for discussing your case.

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