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Debt Relief:Collection Agency: Difference between revisions
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The following information was gathered in an interview with the manager of a local collection agency: | The following information was gathered in an interview with the manager of a local collection agency: | ||
* A collection agency goes after an individual who will not pay a debt. | * 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. | * A Creditor may not seek a collection agency's help for 6 months to 2 years after the debtor is delinquent. | ||
* Reasons why debtors do not pay | * Reasons why debtors do not pay are ''poor money management skills, illness, and lack of desire to pay'' what is owed. | ||
*Collection agencies charge a percentage fee for the service | *Collection agencies charge a percentage of what is collected as a fee for the service. | ||
*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. | *The methods used by credit agencies to collect unpaid accounts are 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. | *If the debtor does not pay using a pay plan, the collection agency will '''sue''' or '''garnish''' the wages until the debt is settled. | ||
Something 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. | 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. | Credit counseling is also recommended. | ||