Reports from last year show that 77% of households in America were fighting to pay off some form of debt.
It’s clear that debt is an issue affecting many of us. If you’ve found yourself with bills to pay off, you’ll want to have a plan in place. That’s because, after some time, a debt collector will chase them up.
Read on to find out the process behind making payments to debt collection services.
What Are Debt Collection Services?
Debt collection services, also known as debt collection agencies, are third-party organizations that work to collect the debt you owe to other companies. Debts are sent over to the agency to deal with when a certain amount of time has passed and you still haven’t made the payments. This usually happens when debts aren’t cleared after several months.
When you’ve found yourself in this position, you’ll want to start to clear your debts as quickly as possible. In this article, we’ll show you the steps for how to make payments to your debt collection service.
You can find out more information here about what makes an organization a debt collector.
How to Make Payments to Debt Collectors
The process of paying off your debts doesn’t have to be as stressful as it may first appear. When you understand the steps, you can make payments easier.
Confirm You Own the Debts
Before you start to pay, always confirm the debt is yours. Your balance and records will show when the debt amount is right and it’s payable by you.
You should then get in touch with the creditor that you owe to confirm that the debt collector that’s contacted you is who should be dealing with the payments.
Research Your Statute of Limitations
Separate statutes of limitations are set by each state. This refers to the amount of time you’re given to pay off your debts.
Bear in mind that some states allow you to activate the debt again even after the period has passed. Therefore, you’ll definitely want to check and see if this is an option.
Understand Your Rights
A debt collection agency may only be allowed to contact you between certain times, according to the Fair Debt Collection Practices Act (FDCPA). They’re unable to call you from 9pm to 8am and are under obligation to only disclose any information relating to your debt directly to you.
If the debt collector doesn’t follow these laws and procedures, you should relay this to them in accordance with the FDCPA. Alternatively, you’re free to report them to the Consumer Financial Protection Bureau who’ll take control of the matter.
Find the Right Amount That You Can Pay
Remember to factor in your budget and how much is feasible for you to pay.
Since your debts will likely be required to be paid off in installments, this will allow you to determine a healthy amount that you can afford. It will also enable you to make better decisions when it comes to cutbacks and spending in areas that aren’t necessary.
Put Your Payment Plan in Place
To set up a payment plan, you’ll need to discuss it with your bill collector. If you’re unable to pay it all off at once, or at least in large amounts, the agency should be able to offer you a plan you can afford.
Installments allow you to pay off your debts in a manageable, less stressful way. You’ll be deciding how many installments will be paid and how long it will take when speaking with your debt collection service.
Find Out More About How to Manage Your Finances Here
If you’ve found yourself in debt to any agency, this guide’s for you. Use this step-by-step process for clearing your debts with debt collection services.
You can check out some of our other blog posts on how to take control of your finances and manage them better.