How to Pay Debts to Collection Agencies. Debt collection agencies are often aggressive and also intimidating when collecting past due debts. These agencies use tactics such as seizing your work income, clearing your belongings and taking it to court if you do not pay debts.
Although debts have already been reported to credit bureaus, it is important to pay agencies to avoid further problems with their credit.
When agencies are collecting a debt this means that the bank or credit card has already erased the debt and reported it to the credit bureaus.
However, collection agencies buy these unpaid debts from the banks and then collect them from the indebted.
If you have decided to pay collection debts, here are some strategies or suggestions to meet your goal.
How to negotiate with collection agencies
Verify the debt – make sure the debt really belongs to you. Ask the agency to show you that you are the borrower. In addition, the name of the bank or credit card, the date and amount of the original debt.
Negotiate with the collection agency the amount to be paid – generally the agencies manage a payment below the original amount of the debt. The older the debt, the agency will be more willing to negotiate with you.
Obtain an agreement with the collection agency in writing – the agency must agree in writing that upon receiving the agreed payment you are NOT going to try to continue collecting the debt or part of it.
Do not make any payment before receiving and agreeing to the settlement contract made with the agency – in writing.
Open an exclusive account for payment to the agency – It is not advisable to declare your bank account information and check the agencies.
They can try to recover the amount of debt by taking money from your account – by legal means. Instead, open a single account for payment of collection or page debt with Money Order to the agency.
Deal with the Collection Agencies
Use an organization for credit orientation. If you prefer not to negotiate directly with the collection agency, use the services of a credit counseling organization. It is advisable to use a nonprofit organization that does not make a profit by guiding it.
One of these is the National Association for Credit Counseling or the National Foundation for Credit Counseling, nfcc.org. This can help you with information, education and financial and credit counseling.
Although you can deal with the collection agencies yourself to establish payment agreement. Remember that you can also seek help if this is too overwhelming for you. As I suggested before, nonprofit associations such as NFCC.org can help you with various tools.