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Debt Relief:Collection Agency: Difference between revisions
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* A collection agency goes after an individual who will not pay a debt. this debt is anything from medical bills to florists bills. | * 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. | * 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 | * 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. | |||