Credit Problems - Why Debt Collectors Are Not the Answer
Avoid being forced down the wrong route by pressure from debt collectors. Find out why they don’t have all the answers.
It is my belief that if you have multiple debts
problems then speaking to debt collection agents is not the answer to
your problems. Some people will no doubt think that this advice is
incorrect or irresponsible so I will explain why I say it.
If you have reached a debt crisis situation you need a debt solution that:
1. Pays your creditors what you can afford AFTER paying all your essential bills such as mortgage/rent/food etc.
2. Allocates the money that you have available fairly between all of you unsecured creditors.
Most
agents working in collection do not care about the above points. The
sole objective is to persuade (and that’s a polite term) you to part
with as much money as possible. It is often no concern to them if you
or your family go hungry because you’ve paid money to your creditors.
They will also not care if you miss or reduce your mortgage payment for
the same reason, pushing you down the road to re-possession/foreclosure.
It
would not be fair to suggest that debt collection agents should be
considering your other debts, if you have multiple debts they are in
competition for your limited money with other commercial lenders.
However their desire to increase the share that their company is
getting will often create a lot of pointless (from the debtors point of
view) pressure.
The best idea is to get independent advice on
your debt situation from someone that can also represent you to your
creditors. If you don’t want to do this then you can come to an
informal arrangement with your creditors by preparing your monthly
budget , and allocating the excess income fairly between your creditors.
Update all of your creditors every few months or sooner if there are
any significant changes and you will be fulfilling all of your
obligations to your creditors without ever needing to speak to possibly
threatening debt collection agents.
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Tags: commercial lenders, crisis situation, debt collection, debt collectors, debt crisis, debt situation, debt solution, debtors, debts, excess income, foreclosure, independent advice, informal arrangement, monthly budget, mortgage payment, point of view, polite term, possession, sole objective, unsecured creditors