but we had to deal with some pain the butt collectors to get to that point.
We still have a couple of business credit cards that we are still working on and one has actually gone to collections. We just received this ridiculous offer from the collection agency. We owe over $40,000 and they have offered to lower the debt to $34,000, which is great, Chase reduced are balance too by removing the interest we owed, but here's the kicker with the collection agency - where Chase is giving us 5 years to repay our debt, the agency is giving us two months. That's $17,000 a month for two months. If we had $17,000 a month to pay the account we wouldn't have gone to collection. The other offer they are offering us is $3,400.00 a month until the balance is paid. Again if we had $3,400 to pay a month he account wouldn't have been past due.
So what is the deal with collectors and collection agencies? Well, most collectors are just doing their job. You owe money and it is the collectors job to get you to pay back the debt you owe them. It is perfectly legal for them to call you and ask when you are going to pay them back. It's OK to talk to them, but if they are rude or harass you don't have to take it.
A lot of collectors do however break the law all the time. Collectors are not paid very well and are generally not very well trained. They are not interested in helping you. Their only concern is to get you to pay the money you owe them. There is usually a high turnover rate for collectors. Being a bully takes a lot out of you.
The collectors are taught to make you emotional once they get you on the phone. If they get you emotional, whether it be, angry, upset or even get you to cry, you will most likely pay them rather than your rent or mortgage.They will yell, intimidate, scream, and threaten you. Excessive phone calls are illegal, but they will happen.
Many people are choosing not to pay their bills, but I am not one of them. I am looking for a little help to get through this economic crisis. So I won't tell you to avoid your creditors or not pay them what you owe them, but if you stay on the phone with these guys for any length of time chances are they will get you to crack. The longest you need to be on the phone with them is long enough to tell them where are at with making your payments.
Always stay in control. Don't let them convince you to pay your debts over your basic needs - shelter, food, clothing, and transportation.
How do you get the credit card companies and collectors to stop harassing you? First off you owe them money. You borrowed it and when you borrow money the idea is you have to pay it back. I know it sucks, but it is what it is. There is no magic bullet to get out of debt. But you do not need to be abused in the process.
Go to the Federal Trade Commission if collectors get out of hand with you. If you ask the collection agency to stop calling you at work and they don't, you need to send a letter to the company harassing you. Send it overnight and make sure you get proof of delivery and a tracking number. Your letter should state, "My financial adviser has informed me that you have broken the law. Under the Federal Fair Debt Collections Act, once I notify to stop contacting me at my place of employment, you most stop." You need something like a letter so if you end up going to court you have proof you asked collection agency to stop harassing you at work.
Now creditors can pull out the big guns and tell you they are going to garnish your wages. Don't panic. If you don't owe that much the creditor probably won't sue you because the lawsuit will cost more than what you owe them. So creditors will use other tactics like fear and anger. Remember - anger, fear, aggression...the dark side are they. Here's what you should do:
- Screen your calls using caller ID. You only have to be in contact with the creditor every two weeks.
- Get an answering machine that you would be able to record harassing phone calls.
- Send them your budget so they can see what you can afford to pay them each month. When you can send more, send more.
[This post is written and copyrighted by Financial Elite (http://financialelite.blogspot.com/ ).]
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