subject: Collection Agency Basics Part Six: Advice For Debtors [print this page] In the first five articles on my seven article series on debt collection, I defined what a collection account was and why it benefited a creditor to send an account to collections. I described information agencies will collect and use and tactics, both illegal and legal that the collection agencies will use to collect debt. I mentioned that third party debt collection agencies are governed by federal and state law and overseen by the federal trade commission.
I gave you advice to keep in mind if you are on the phone with a debt collector. I reminded you to keep your cool and to call the debt collector back if you begin to feel flustered. I let you know that a debt collector is constantly trying to create a sense of urgency and will ask you why you can't agree to their terms today.;
After you and the debt collector have worked something out, I told you to confirm your payment plan and to verify the fact that you paid in writing. Do this by sending verification by certified mail, return receipt requested so you can get a receipt as proof that the agency received your verification.
I informed you that in the future it is a good idea stay on top of future payments and call your creditor once you have missed one or two before it can be sent to collections. It will be much less stressful to just get this over with than to deal with a debt collector. I pointed out that in many instances it is easy to predict when you will not be able to make a payment and in these cases it is always a good idea to call the creditor in advance if there is some way to work something out. Many times if you call in advance you won't suffer any penalties or late fees.
And, as always, to cut down on stress, protect your personal finances and maintain a good credit score, do not buy what you cannot pay for now. Unless you are in a dire situation where you need food, water, heat or shelter, whatever material item it is that you feel you cannot live without can be placed upon the back burner for now.
by: Mallory Megan
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