There are tens of thousands of people around the country who are in debt issues and for anyone who is facing a mountain of debt which they cannot get out from under, it can be a truly difficult time in their lives. Piling debts result in pressure, stress, difficulties at home, difficulties at work and it can feel as though there is no way out. Contrary to what many think, a debt collection agency can be your ticket to debt freedom, as long as you work with them. We spoke to the team at Brennan & Clark to find out how working with companies like them, can help all involved.
How Debt Collection Works
The premise of a debt collection company is actually very simple, they buy bad debt from banks and lending institutions for a fraction of the overall cost of the debt. The banks love it because writing off a small portion of the debt is cheaper than chasing the unpaid debt, and the agencies are then able to work with debtors to help them get paid up.
When you get calls or communication from debt collection agencies it is vital that you take the call or respond to the letter. Some people make the mistake of burying their heads in the sand assuming that this will somehow work, it won’t. People think that debt collection agencies are monsters who are going to take three home from underneath them, the irony is that severe action like that is taken when they cannot get in touch with debtors, or debtors don’t pay. Face up to what you owe and speak to the agency.
What an Agency Can Offer
Despite the reputation that they have, debt collection agencies are actually there to help you, they don’t want your debt outstanding any longer than you do, so they will help. Debt collection agencies can work with you to put together a sensible payment plan based on your current financial situation. These companies won’t charge interest on your debt, because they are not extending you credit, they are just seeking to get a debt payment back. The ore open and honest that you are, the more that they will be able to help you get on the road to debt freedom, which is what everyone wants at the end of the day.
Failure to Comply
These companies are not to be messed with, if you do what you have agreed then everything will be fine, if you have notified them of a change of situation then they will support. If however you have a deal in place which you renege on, they do have the power to go and get a court order and start taking possessions away. If you have car finance then they can take it, if you have used your home as collateral then they can take it. Nobody wants it to come to this, much less the debt collection agency, so it really is in your best interests to work with them and get your debt resolved as soon as possible.