Debt Relief:Collection Agency: Difference between revisions

Debt Relief:Collection Agency (view source)

698 bytes added , 20 years ago

no edit summary

116

edits

@@ Line 8: / Line 8: @@
 * A collection agency goes after an individual who will not pay a debt. this debt is anything from medical bills to florists bills.
 * Creditor may not seek a collection agency help for 6 months to 2 years after the debtor is delinquent.
-* Reasons why debtors do not pay varies. Some reasons are ''poor money management skills, illness, and lack of desire to pay'' what is owed.
+* Reasons why debtors do not pay vary. Some reasons are ''poor money management skills, illness, and lack of desire to pay'' what is owed.
+*Collection agencies charge a percentage fee for the service it provides.
+*The methods used by credit agencies to collect unpaid accounts telephone calls to the debtor, lawsuits and garnishments. Collection agencies will provide a pay plan as well.
+*If the debtor does not pay using a pay plan, the collection agency will sue or garnish the wages until the debt is settled.
+One thing to keep in mind: If there is debt, it does not go away if ignored. The best way to manage it is to face it head on and explore options available.
+Bankruptcy is recommended by collection agencies if the debt is severe and there are personal reasons for not be able to pay.
+Credit counseling is also recommended.