Credit repair and Collection agencies

Credit repair and collection agencies go hand in hand since one is out to get the other. In other words, we sometimes run from our debts taking advantage of a kind gesture.

Collection agencies are not as kind as the lenders so, therefore, be a warning…the collection agencies are on the loose.

Understand how collection agencies work

We must understand how collection agencies work to find a way to stop hassling phone calls and letters. Collection agencies are third-party sources hired by creditors after the creditor has made every attempt to collect a debt without success. Collection agencies will search high and low and often play nasty little tricks trying to hunt you down. If you changed your address and typed your credit card into an database, do not be surprised when the debt you tried to outrun catches up with you. Collection agencies tap into all types of resources to hunt down debtors. Collection personnel searches through phone directories, and databases online, makes phone calls posing as a friend to lure the debtor in, sifts through the records at the post office, and so on.

There is no stone unturned when it comes to collection agencies in a search to find a debtor. The upside is many of the collection agencies make mistakes by hiring low-waged servants to handle the job of finding debtors. When they are sifting through the files, they often lose contact since they have millions of records each day.

Information handled by collection agencies

Now if a collection agency has an affiliation with the three big bureaus then they have access to information that independent collection agencies do not have. If you are in a financial bind that makes it difficult to repay your debts, you will need to consider losing yourself and leaving no traces when you leave. You move do not freely hand your information, including address, phone, city, or other information to anyone you do not trust.

When you set up a phone account make sure that you have your phone unlisted. Do not apply for loans, credit cards, or anything that requires information from you. It is important to keep a low profile in your new area to avoid complications. This is the ultimate solution if find no other solution for getting out of debt. Problem!

Negotiation with creditors

The problem with running away from your debts is that in time it will catch up with you no matter how cautious you are. If there is no other way out then sometimes, we have to take a leave of absence; but if there is a solution, we need to search all options available to us first. One solution is negotiation. You are hassled by creditors; it is time to send a letter recognizing your situation and asking for an extension on payments. You make regular payments working the debt down then you are on the right road to credit repair. Your debt has reached the collection agency you might want to call your creditor and ask them to take back your debts.

This means you will set up a plan to repay the charge against you and continue paying until that debt is paid in full. In return, your creditors will contact the collection agencies and let them know the debt is in current resolution.

Do not miss a payment

Do not miss a payment when the creditors take back your debt. This will only frustrate the creditors since they were free to give you a second chance. You call your creditors and ask for a take back on your debt and the creditor denies you but gives; if you the opportunity to contact the collection agency to set up payment plans…by all means do it!

You are lucky enough to hear this from a creditor; and the creditor promises to take back your debt after you paid off the collection agency. You are taking steps to rebuild your credit.

When you are in debt creditors will contact you first for up to four weeks in an attempt to collect. When you fail to make payments, the creditors contact the collection agencies who then pursue the debt. To avoid collection agency hassles deal with the creditors.