Credit card agencies when find excessive default in repayments and debt
burden increasing with their client, refer the matter to a credit collection
agency. This agency specializes in recovering debts. The usual process is that
the credit collection agency starts calling you about the debt and its recovery.
Many people simply run away from such calls. But, this is certainly not the
right way to tackle the situation. This article takes a look at simple steps
that can save things from getting worse.
1. Don't avoid the credit
collection agencies call. Respond to them and make sure they get the message
that you intend to pay your debts.
2. Be polite in conversation with the credit collection agencies. Don't let
things slip out of hands, and don't let them dominate things. If they abuse you
tell them politely but in firm words that this is improper behavior and since
you are co-operating with them in debt repayment rude things are not required.
3. Explain your situation clearly to the credit collection agency, what
caused the debt, whether it was an emergency situation that took things out of
hand or anything else. Tell them clearly and mention your existing financial
situation. Ask them to lower interest rates, or provide all the help they can
4. If you are waiting for any positive outcome in near future that could ease
the debt burden, inform the credit collection agency about it. It could be a
salary raise, some bonus, or any other monetary gain. When the credit rating
agencies know it, they will certainly consider it.
5. If involved with a wrong agency which is not relenting in any way, tell
them that you are going for a credit counseling and contact some reputable
company which can get you out of the situation.
And don't forget do document every interaction with the credit collection
agency. They can't threaten you and you always have a legal recourse if they do
so. Keeping a record of things, and acting positively with the credit collection
agency will drive things in your favor. The very fact that you are willing to
repay the debt despite a bad situation will stand by you during testing times.