Having your overdue and negligent debt reported and sent to collections can negatively impact your credit score and be hard to overcome. However, not all hope is lost. To correct the course of your financial future, consider some of the following steps that you can take to pay off your debt in collections.
Steps To Take When Paying off a Debt in Collections
- Be sure the debt is yours. Make a request to your collection agency that they prove the debt is yours. Creditors must provide you with a letter verifying:
- The original creditor’s name
- The collection agency’s name
- How much is owed
- Multiple legal statements surrounding your rights as a debtor
- If not accurate, dispute the reported collection. Validating a debt can stall the process for you and present you with extra time and options. It allows you to get your information together and find out if your debt is correct or still owned. If the amount is incorrect, already paid, or past the statute of limitations, then you will be able to dispute the debt.
- Select a payment plan option or arrange a debt settlement. Once the debt is proved to be factual, it’s now time to decide on a payment strategy. Here are some of the best methods to satisfy your debt in collections:
- Consider a lump-sum payment. Settling the debt in full is an easy way to skip the negotiation process, decrease your stress level, and take care of the debt in its entirety all at once. As an added plus, it will also give your credit score a nice boost. While a one-time final payment is nice, it’s not a realistic option for many indebted borrowers. If the money isn’t available, consider a debt consolidation plan.
- Initiate a payment plan. Collection agencies will probably work with you on a payment plan to aid you in fulfilling a debt over a determined time frame. Make sure every single detail is on paper in a written agreement before making your first payment. Keep in mind how much you can afford so you stay within your means and not fall further into debt.
- Settle for less. Attempt to negotiate a settlement with your debt collectors. The process is faster than a payment plan and can save you extra cash. The downside to consider here is whatever lump sum you offer may not be accepted by the collection agency. If you can’t reach a settlement on your own, rely on professionals who have established relationships with collection agencies to negotiate a settlement on your behalf.
Contact the Debt Relief and Settlement Experts
At Progressive Debt Relief, our team of experienced professionals can help you settle your debt as efficiently and discreetly as possible. Our debt relief experts work alongside your creditors to pinpoint a solution and fulfill your debt. If you are looking for debt-free financial independence through debt settling, negotiating, and counseling services, then contact Progressive Debt Relief today.
