The Inside Scoop -- Collections & Paying Off Debt

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If you or someone you know is having problems paying off debt, you need to know this information about the inside world of debt collections and debt collection laws. I know – I worked in it, and I have the “inside scoop.”

 

I eventually worked, in fact, for a national debt buyer and managed accounts with collection attorneys all over the U.S. for several years. Many of the clients were baby boomers and the elderly. There are a couple things you must be aware of – debt collectors and their attorneys do not necessarily care how old you are or what your situation is. Especially if you own property.

 

We all know paying off debt brings a tremendous peace of mind and empowerment. It is one of the biggest steps you can take for life planning, besides taking the standard “paying yourself first” action. I’m sure you’ve heard of that. In these times many folks have debt that they may think to be unmanageable. Many are tempted to walk away from the debt, take the “oh, just forget it” approach, and hope it goes away because the times are difficult and everyone else seems to be having problems too; – everyone else is in the same boat; – so just let the credit card company suck it up and write it off; – they write stuff off all the time.

 

Wrong. They may charge it off, but that is not the same as writing it off. And it is highly probably that your “oh-well” debt will eventually end up in the hands of a debt buyer – something, trust me, you do not want. You need to know how the various layers of the collection world work, if nothing else but to pass the info on to someone else.  

 

There are many layers to what happens to your debt if you decide to try to just forget it or believe it’s overwhelming to deal with. It goes from the creditor’s internal collection system, to probably a third party collector, back to the original creditor, who then sells it to a debt broker who sells it to a debt buyer, who usually is, or who has a collection attorney (or several)  -- sometimes in almost every state.

All this time your interest is accruing at an astronomical rate. And you probably are not even aware of what is going on. Yes, you may get letters from these various people, but the grand total of your debt is now so high is does not even resemble your original debt. And, of course, you no longer recognize any of the names of the companies contacting you, so you may think it is a scam, so you do not respond. It is not a scam, and they probably are perfectly within their legal rights.

You have rights too – do you know what they are? And do you even know if they’re being violated? There are debt management solutions available so that debt does not ever get to this dreaded point. So seek help. Learn more inside scoop at: Paying Off Debt.

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