Every consumer’s nightmare is that they are unable to pay their debt and it ends up with some type of collection agency. Worse yet, they get the first invoice from the agency and their debt load has increased significantly.
Can they do this? Absolutely, but all hope is not lost.
Your first step to attempt to prevent this from happening is to try to work out some type of payment arrangements with the original creditor.
Most people do not realize that today, more than ever before, lenders are more willing to work out favorable terms before sending something to a collection agency.
In most cases, they are only getting pennies on the dollar when they do this, so business wise, it does not make much sense if they have someone who is ultimately willing to pay their debt.
If it is too late to make arrangements with the original creditor, it is best to contact the credit agency immediately that is currently holding the debt.
Occasionally, if you are willing to work out terms for repayment immediately, they will remove the fees from the debt and begin to accept payments.
In fact, it is not unheard of for the agency to return the debt to the original creditor. Regardless, work out terms that you can afford and do not fall short on the debt.
If you find that after time, you have enough money to pay off most of the debt in bulk, contact the agency again to see if there is a buyout.
Because they are only paying pennies on the dollar to the original creditor, they will often take a short payment in order to get the debt off the books.
For instance, if you have £1,000 remaining and have access to £600, ask them what they would be willing to take to settle the debt. If it falls in the range of your available funds, make the payment and be done with it.
Allowing your debt to get to a collection agency is never a pleasant ordeal. Their collection methods are often much more harsh than the original creditor would ever take.
For this reason, it is often best to attempt to work out favorable terms with the creditor when you sense there might be an upcoming challenge meeting your financial responsibilities.
If it is too late to do so, contact the credit agency and attempt to work out favorable terms before its fees double or even triple the original debt.
