Debt collection services are a very serious aspect of our financial health. Most people make the mistake of believing that if they just pay a small amount of money they will get out of debt themselves. The truth is that you must be very careful not to fall into the same trap. In order to avoid debt collection services and protect yourself, it is necessary to become educated about how to control your own spending and how to negotiate with your creditors.
The most important step in protecting yourself from debt collection services is to be aware of your state tax debt and any other delinquent accounts you may have. Many debt collection agencies offer a free telephone consultation. During this consultation the agency will review your current bills and delinquent accounts and work with you to identify which of them are really worth pursuing. If you have many different accounts, the debt collection services will work out a total payment amount for you to pay in order to get all of your delinquent accounts paid at once.
After a debt collection service has arranged a total payment plan for you, they will then begin to contact your creditors. They will try to work out new repayment arrangements with your creditors. Many times the debt collection services will skip any phone calls from creditors on your behalf and continue to contact them on your behalf. This can be very detrimental to your credit rating. This is why it is very important to only deal with reputable agencies.
When dealing with debt collection services it is vitally important that you never skip-traces. Skips are very easy to make. Many times agencies use this skip-tracking method because it is faster than contacting the companies directly. A big part of the skip-tracking system involves creating a database of regular customers. Whenever a customer doesn’t repay his or her delinquent accounts on time the agencies are notified. They then use this information to try to get more money from the customer.
The other problem associated with skip-tracing is the fact that creditors feel like they are being stalked. In many cases, the creditors simply ignore the phone calls. There have even been cases where the creditor has gone so far as to threaten the debtor for not paying their accounts. The bottom line is that the creditors will often avoid making a phone call to a debt collection services, but when they do make a call they will not offer any assistance. This can place a bad reputation on the agency as well.
The best business decision that we ever made was choosing to deal with debt collection services. We did not receive any high-pressure sales pitches from any of the agencies. The agencies took every measure necessary to make sure that we were comfortable with the relationship. In short, the agencies made the right choice for us.
The problem that many agencies face is the inability to successfully compete with other agencies that charge less. For example, there are many agencies that claim that they will provide the same types of services for only $20. Many debtors are afraid to work with those agencies because they do not believe that they can afford such low-cost services.
However, most agencies have access to higher-quality call center services at affordable prices. In addition, the debtors do not have to worry about spending time with representatives from other companies trying to convince them to work with them. Debtors simply need to understand that they have options. If they make the right decision and choose to work with a debt collection agency, they will enjoy the peace of mind that comes from knowing that they are working with an honest company that is willing to resolve all of the debts that they owe.