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Tips to Dealing with a Debt Collection Agency

Taking out a loan is something most people will have to resort to at one point or another. Although you may have the intent to pay it back, unforeseen circumstances may cause you to default. This could range from a financial emergency or maybe you lost your job and simply are not getting the same income as you did before. No matter the reason, defaulted loans typically end up being pursued by a debt collection agency. If you are in this type of situation, the best thing to do is not ignore the debt collectors, as this will not make your debt go away. The following are some tips that could help you with dealing with a debt collection agency.

Ensure that your debt has been proven 

This is something most people take for granted when being pursued with debt collectors. The truth of the matter is you are not obligated to pay for any debt until the collection agency has proven that you do indeed owe a certain amount of money. Even if you now that you do owe the money, having the debt collection agency prove that you do have a debt can buy you more time as you try to figure how to pay back what you owe. You should request that the debt collector can prove in documentation that not only do you owe a specified amount of money, but that the company that hired the debt collector is the rightful owner of the debt that you owe.

Explain your current situation to the collector

One thing most people do not realise is that these debt collectors are just as human as you. Although not all of them are lenient, some may actually take the time to listen to why you have not paid back the debt yet. When explaining your situation, inform them about which bills are the most pertinent to you. This could be in the form of a mortgage or a car loan. On the other hand, maybe you are unable to pay since you cannot work due to physical inability or hospitalization. Assure them that once those bills are paid or when you are back at work you will take measures to repay your pending debt. Some debt collectors may agree to come into an agreement with you depending on your current situation if it is legitimate.

Work out a payment plan

Lastly, consider working out a payment plan with your debt collector. Enquire if the collection agency would be open to a payment plan. Then figure out how you can begin decreasing your debt without having to pay it all in one lump sum.