Are You Being Contacted By Debt Collection Companies? Here's What You Need To Know

contacted by debt collection companies loan agencies how to respond owing money

Your phone keeps buzzing with the same name and you hate to answer the call. Your bank account keeps saying the same thing, but you hate to listen to it! In that scenario, we know who is it on the other end - the debt collectors! It's certainly not a happy feeling to be constantly pricked about your pending dues and their due dates. But let me tell you one good thing, it might seem difficult in the beginning but once the repayment is done, there’s no better feeling. 

Debt Collectors are often shown as heartless scoundrels who would stoop down to any extent get back the money but let me tell you the truth – it is completely fictional! In fact, if you are willing to work together, they travel the extra mile to help you pay back the debts. I would like to share an experience; recently, my uncle who was contacted by Cedar Financial for his unpaid medical loan came under a lot of stress. But later, when both of them worked together, these guys designed a very efficient payment plan as per my uncle’s finances and needs. Later he successfully paid back the loan and even improved his financial health. 

Do You See How Easy It Is? 

You just need a little bit of motivation and intention and the road to a debt-free life isn’t as difficult. 

Why Are You Being Called? 

More often than not, it’s because you have some pending debts in your bank account that you might or might not be aware of. Here are a few common ones: 

● Credit card bills - Using your credit card and not paying them in time will cause an accumulation of debt. 

● Student loans - You need to start paying your loans back as soon as you are done with your education. If not, you know what it would lead to. 

The next three too, carry the same instructions with them. 

● Unpaid medical bills 
● Mortgage 
● Upside down car loan 

There might be more reasons, but to explain to you what all of it is about, I hope this is sufficient. Do you know, there was around $3.5 trillion in total outstanding consumer credit, by the end of October 2015. 

What Should You Do If You Don’t Recognize The Claimed Debt? 

This is a very common problem that the debtors face. You do not recognize whether the claimed debt is yours or not. 

Well, just because you can’t recall, it certainly does not mean that it is not yours. However, it doesn’t suggest the contrary either. So, a proper inquiry with detailed questions would be for your best interest. But let me tell you, it’s very rare that these debt collectors have mistaken you with someone else. So, I would suggest gear up and dig up your records, you might find it there. 

What Do You Do When You Really Cannot Afford To Pay Back Your Debts? 

Efficient debt collectors would never force you to pay the money at the cost of your basic requirements. In fact, they cooperate and customize an instalment plan for you that complies with your income and expenses. Cedar Financial did the same in my Uncle’s case. It is a popular international debt collection company. All the trusted agencies follow the customer-first approach and avoid harassment and torture by all means. 

Can You Ignore The Call And Not Pay The Debt? 

No, you cannot. Your creditors gave you their hard-earned money on conditions of you paying them back. And now when it’s time, it’s certainly not right to step back. While debt collectors are very cooperative until you are ready to settle, they would also knock the legal doors whenever required. So now you understand that ignorance or delays would never give you the solution. It only worsens the situations ultimately leading to a great fall on your financial scorecard. 

While we come to the end of this guide, I would like you to warn of the scams in the name of debt collection agencies. Trust no one, unless you have all possible reasons to trust – ask questions, inquire, verify, seek reviews and then proceed. All the best!

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