Many New Jersey consumers find themselves overwhelmed by the credit cards, car payments and mortgages that make up so much of modern finance. Seeking debt relief can become a priority once bill collectors start calling. What isn’t always realized, however, is that there are ways to work with collectors that can make life a little bit easier. Financial experts shared some of their top tips for dealing with debt-collectors.
One tip is individual debtors should always work with the original creditor. Creditors can be called directly, or if that doesn’t work, working with a nonprofit credit counseling agency can also be beneficial. However, credit card payments more than six months overdue without any payment will be shuttled off to a third-party collection agency. This removes the option to work with the original creditor. Another tip is that collectors are required to follow all federal and state laws when they communicate with debtors. If they seem pushy to get the money immediately, that is because collection agencies are trying to beat the clock. They need to get something paid on a debtor’s account before the original creditor takes the account back from them.
The last tip given by the experts is that monthly payments are not the only option for working with creditors or collectors. Oftentimes, collection agents are authorized to accept settlements. The amount usually has to fall within certain guidelines set by the creditor, but a lump sum payment for less than what was originally owed can be made in many instances.
Debt relief choices and bankruptcy options can be confusing. A New Jersey attorney experienced in bankruptcy strategies may be able to make those different options more clear to those facing overwhelming debt.
Source: Daily Finance, “6 Important Things You Need to Know About Debt Collectors“, Michael Bovee, September 03, 2013