Last week was a truly fascinating one for me as I was lucky enough to spend 3 days with the team at Brennan & Clark LLC, a debt collection agency. Now to many these may seem like 3 days wasted but in a world where people’s personal debt is spiraling out of control, those days gave me a great insight into what life is like on the other side of the fence. Throughout the US there are hundreds of thousands of people who have debt which they are mismanaging, can’t afford to pay or simply ignoring, a worrying trend which is putting many under huge pressure. Settling with a debt collection agency is the best case scenario for so many, and here is why.
Debt Collection Agencies Explained
First let’s have a brief look at what debt collection agencies are and how they operate. Simply put, big lenders like banks do not want bad debt on their books, when they have loaned money or given to credit to someone who hasn’t or isn’t paying it back, they would far rather sell that debtor to a debt collection agency, for a lower price. This way the lender at least gets some money and moves forward, which is far cheaper than chasing the money themselves. The debt collection agency then seeks to recoup the money.
What Can They Do?
Debt collection agencies will try to reach out to the debtor with calls, emails and house visits until they are able to speak with them. They will almost always e very accommodating with the person who is in debt and they can offer settlement offers, payment schemes without interest and other benefits which the original lender cannot. Unfortunately however so many people still fail to acknowledge the debt collection agency which is where they can get unstuck. A debt collection agency has the power to remove items which were bought using credit such as vehicles, furniture and gadgets, and they are lawfully allowed to do so.
Why You Should Settle
Beyond the obvious fact that you should settle to avoid a debt collection agency coming out to your home to repossess items within it, you should also settle because they can offer you a great deal. Let’s say that you owe $10,000, you may very well be able to settle for around $7,000. The reason for this is that when the debt collection agency bought the debt from the original lender, they could have bought it for 60 cents on the dollar, which is why they can afford to pass that saving on to you. Ultimately debt is not good for anyone, it is not good for the person who owes money, it is not good for the original lender and even in the case of a debt collection agency, they want clients to come and go with speed as they have money tied up in the debt which they have bought.
If you are contacted by a debt collection agency, don’t think twice, do all that you can to work with them.