Several Ways To Approach Collection Phone Calls

Best Credit Guide — By Shopping Blogs on January 13, 2010 7:30 am

If you have to screen your calls or find yourself letting your voicemail pick up when you don’t recognize the number on your caller ID, then chances are you, along with many of us, are avoiding collection phone calls . But the truth is, that avoiding these pesky phone calls will only make your debt situation worse.

Let’s fact it, no one likes owing money, especially when we may feel like we can’t pay the bill. And, for the most part, the majority of us avoid confrontation at all costs. So it stands to reason that when you see that medical bill collector, credit card company or mortgage office calling for the third time in one day your first instinct is to turn off the ringer on your phone and it go to voicemail.

Ignoring the collection phone calls is not always the best option because while you are dodging the phone calls, time is passing by. If a bill stays in collections for more than 30 days, the collections agency may report it to the credit agencies.

The last thing you need is unnecessary hassle or the headache of trying to dodge continuing phone calls. The truth is that owing someone or another company money can have a serious toll on you by adding undue stress. You may stay up late at night worrying about where you will find the money to pay off the bill or what the consequences of settling the balance, or letting it go past due will have on your future.

Trying to figure out the best way to handle a collection account is not something many of us are prepared for or want to come to terms with.

If you are trying to clean up your credit or concerned about your credit score, then promptly dealing with any collection phone calls is the best way to keep your credit score squeaky clean.

However, you may simply be unable to pay an overdue bill. Believe me, you are not alone in this circumstance. For the most part, the company where your account is held and even the credit agency is not out to garnish your wages or make it impossible for you to keep food on your table. But don’t get under the impression that they will extend a free pass to you because you are going through financial difficulty.

If you are seeing more and more collection phone calls then it may be in your best interest to talk to a credit counselor. There are times when an agency may be able to help you get out from under a very large debt. Typically, if you owe less than $10,000 of credit card debt or overdue bills, you do not need to go so far as enlisting the help of a credit counseling agency.

You may be able to avoid credit counseling and even avoid collection phone calls if you contact your lender when you begin experiencing a hardship. A lender would rather work with you before a problem begins. Many lenders, especially mortgage lenders, offer financial hardship or forbearance programs. Truly, taking charge of your debt before it becomes overdue is the best way to approach financial hardships.

It only take a phone call to your lender to ask if they offer any forbearance programs to help you get ahead of your monthly bills. Be prepared to fill out financial paperwork showing your income and expenses, but even a few pages of paperwork is well worth the effort and reward of avoiding collections agencies and harming your credit.

Popularity: 1%

Tags: Collection Phone Calls