In our industry, we’re no stranger to the difficulties and challenges of debt collection. We work with people across the country who need to reconcile accounts and pay off past due balances. Sometimes people have just fell on hard times and have compiled more debt than they were able to handle. Sometimes it’s a mistake, and we help people clear their name. Of course, in our industry there are also times that people avoid our calls and it’s an uphill climb to get to any sort of account reconciliation.

Our half a century of experience in this industry is a resource for those who are either trying to avoid debt collection or trying to recover from it. We’ve helped people clear their name, restore their credit, and move ahead with new opportunities.

Here are some thoughts on avoiding and recovering from debt collection: 

To Avoid Debt Collection

If you are finding your debt situation escalating out of control, the answer is not to ignore it! There are steps you can take to avoid the headache of being sent to collections, and they don’t always involve coming into exorbitant amounts of cash.

Ask for Leniency

Lenders will often negotiate to a lower balance if you have a down payment that you can make. You may owe $1,200 on a medical bill, but may be able to pay $750 and have your account cleared if you can pay it all up front. It just comes down to a conversation with an account representative.

Negotiate a Repayment Plan

Lenders are often willing to negotiate a workable repayment plan with you if you simply communicate your capacity. If you proposed a scenario that involved getting your account current and a regular monthly commitment, they’d likely work with you.

Make Minimum Payments

While it’s not a long-term strategy to getting debt-free, making minimum payments can be enough to keep your credit intact and keep you out of debt collection. If you need to make minimum payments for 6 months until you can work out some other financial accommodations, that may be all it takes to get you toward reconciliation.

To Recover from Debt Collection

Make Regular Payments

The more you do to demonstrate financial responsibility and consistency, the more creditors and lenders are going to trust you. While being sent to collections can cause issues for your credit score, making regular payments can help bring recovery. Whatever bills you have and whatever debt you’re paying off, paying at least your minimum amount due on-time will make a big difference.

Have a Credit Card

This may seem counter-intuitive, but it’s actually a pathway toward financial opportunity. A credit card with a small spending limit that you use but keep balance free each month helps you recover from bad credit scores. Consistency is key, and so consider a simple credit card that you start using regularly to bring more opportunities for your future.


 

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It’s not ideal to be in a situation involving debt recovery and collection. But life happens! And it’s also not a financial death sentence. Try some of these simple steps to make avoiding debt collection possible and recovering from it simpler.

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