When one of your debts goes to collection, it can be a nightmare. Suddenly, you start receiving a ton of calls about the debt, with the caller demanding immediate payment. Plus, you have to worry about damaged credit.
However, you have options, including debt collection settlement. If you’re wondering how to settle with a debt collector or simply how to stop the calls, Optimal Debt Solutions may be able to help.
Understanding Collection Agencies
Collection agencies operate by buying debts from creditors. The creditor no longer expects a full payment, so they sell the debt to a collector for less than the total. The collection agency then works to get full payment for the debt. It’s their entire business model, so it’s easy to see why they spend so much time chasing down the money.
How to Handle Debt Collection Agencies
Solutions such as debt settlement or debt consolidation may help you get out of a bad debt collection situation. Since these options can take time, you may want to manage your interactions with the collection agency first. Here are a few tips to help:
Make Sure It’s Your Debt
Sometimes collection agencies get it wrong. They might be trying to find someone else or collect on a debt you already paid. When they first start calling:
- Ask them to verify the debt, including the name, total amount and account number.
- Check your records for proof that you already paid the debt.
- File a dispute with the credit reporting agencies if the debt isn’t yours.
Stop the Calls
If the calls are making you miserable, there are a few things you can do to stop them:
- Tell the caller that they must stop calling you.
- Ask for a name and address, and mail a certified letter requesting that they stop calling you.
- End the conversation if the caller makes false claims or threats.
Correct Your Report
Once your debt is resolved with the collection agency, you’ll want to take these extra steps:
- Get written proof that you paid the debt.
- Write to the credit reporting agencies with evidence that the debt is paid.
- Confirm that your report reflects the change.
Debt Collection Relief Options
If you’re wondering, “How much will debt collectors settle for?” or you want to stop collections from happening in the future, you may need a different solution. Debt settlement uses your savings to negotiate and resolve the debt, whereas debt consolidation combines several debts, including collection debts, into one payment. If you’re not sure which one is best, start with our debt calculator.
Optimal Debt Solutions helps people like you consolidate their debt. Our experts can work to settle your debt on your behalf, often for less than the total. To learn how to settle collections or to discuss your options, talk to a debt analyst today.
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