In the USA there are a huge amount of people living under a mountain of debt which they cannot control. The worrying thing about this is not so much that people are in debt which is out of their control, but that many of them are not facing up to this issue which they have in front of them. In many cases their original debts are passed on to debt collection agencies and if this is something which happens to you then you need to understand the importance of facing up to the issue. We spoke with the team at Brennan & Clark LLC about the importance of dealing with debt collection agencies if you are in trouble.
Ignorance is no Bliss
Far too many people chose the option of burying their head in the sand when they are faced with calls and letters from debt collection agencies and this is the worst possible approach. The problem will not just go away and debt collection agencies do have the power to seize assets if they are not communicated with by the person who owes the debt. Debt collection agencies take steps to try and make contact and reach a solution, if you ignore those offers then you will face the consequences.
It is important too remember that these debt collection agencies want the debt resolved just as you do and that is why they will always be amiable and flexible with helping you to set up a repayment agreement. In many cases you can settle with these companies for significantly less than you borrowed in the first place. Furthermore you can also speak to them openly and honestly about what your financial situation is and they can help you to make a realistic payment plan which won’t put you under financial pressure. The key is to get in touch with them, be honest about your situation and work out a deal.
These debt collection agencies often get a bad rep but the truth is that they are a great help to the financial industry. The reason why these companies are allowed to buy debts from creditors is that the banks and lending institutions don’t want to have to spend their money on chasing up unpaid debts. When a debt collection agency take over it is because the person who borrowed the money hasn’t faced up to their debt, in this situation they are not victims, they went into the credit agreement with their eyes open and they have reneged. If anything these agencies are doing the person a favor in offering them a way out.
If you do face debt problems then it can be very challenging and tough on your personal, professional and private life. The only way out is to face up to what you owe and work with the people who are trying to help you in putting together a deal. If you are able to do this then you can bring your debt down and start to take the pressure off yourself.