Financial hardships can happen unexpectedly, which could lead to late or missed payments on your debts. When this occurs, a collection agency could get involved and you’ll know it when you start receiving phone calls, letters, and other forms of communication. When you work with a credit restoration company, you can handle debt collectors a little easier and understand how to pay off collections debt. Here are some strategies to consider.
Validate The Debt
Collection agencies can be persistent, so the first thing to do is validate the debt before making any payments. Sometimes mistakes can happen with credit reporting, so the debt they are collecting could be inaccurate or not even yours to begin with. The best credit rebuilders suggest sending a dispute letter to the collection agency as soon as you receive the first phone call if you believe the debt is invalid.
Confirm The Statute Of Limitations
Debt collectors don’t have the freedom to call you at any time about your debts. A credit restoration company can help you determine whether the statute of limitations for your debt is still active. Working with an attorney to understand your situation is also ideal. Debt collectors sometimes will assume consumers don’t understand the statute of limitations and try to collect the debt even if the time for taking legal action has passed.
Understand What You Can Pay
Once you’ve confirmed the debt is yours and you are within the statute of limitations, it’s time to look at what you can realistically pay. You could enter negotiations for installments or a lump sum payment. Talk to your credit rebuilders if you need help determining the best option for your financial situation.
Speak With The Debt Collection Agency
Avoid speaking to the debt collection agency and making any promises until you fully understand your situation. At that point, you can discuss your financial situation and negotiate options for paying the debt. Once an agreement occurs, be sure to get the information in writing.
Pay The Debt According To The Terms
When you go through the time and effort to negotiate payment terms, be sure to make your payments timely. Otherwise, you’ll be working with credit rebuilders again in the future, but your options could be limited.
Core Credit Solutions can help you with credit repair in Los Angeles. Our team has more than 25 years of experience in helping people repair their credit and have a brighter financial future. We understand everyone has different financial situations, so we take a unique approach to each. Don’t hesitate to contact us to learn more about our services and how we can help you.