Resolve Collection Account
Resolve Collection Account : Many people don’t even know the ways of handling collection accounts because these accounts have become a big problem for many people. Credit bureaus are failing to maintain and also prove (in the consumers’ eyes) consumers delinquent accounts. This has a pip themselves of sending customers back to the collection agencies. Collection accounts are a problem for everyone and you must ensure that it does not become a bigger problem. You can correct this and give yourself a clean sheet in the long term by answering your debt with proven measures. For this consideration I have gathered seven measures in the short and the long run.
• Start paying it down – First of all you should launch a credit restoration plan which involves weekly payments with the original creditor in order to get them to update your credit score information. Remember that customers are the lifeblood of your business so you must ensure that the money which you have invested in them is not shorttransfered to the collection agencies.
• Start disputing – A good strategy would be to dispute accounts with original creditors as disputing accounts with collection agencies would simply result in the removal of the accounts records. According to the Fair Credit Collection Practices, Collection agencies can only keep information on the consumer for seven years but collection accounts for 6 years.
• Get everything into writing – In case you can not get the collections and the original creditor to work with you on account expunices you should take every detail into account and make sure that you have everything in writing before making an offer.
• Get everything into one big huge mass – Instead of making a big bunch of payments to different collection agencies you should go for a single debt diligence and initiate a payment to the creditor.
• If you have some funds available – It is also important that you have some cash in reserve because if the creditor does not accept the account as agreed, the collection agency will make the payment to the original creditor to settle down the account. This also ensures that the account is settled in full.
• You should not close or pay off collection accounts – You can make one last effort to strike a deal with the creditor and ensure that your account is paid in full but this is not recommended because it can reset the seven year clock. Your account must also not be closed but patience is key if the creditor is not ready to grant your request.
• Consider credit counseling – If you have more than $1000 in outstanding, it is advisable to look for a credit counselor. They will chalk out a good strategy for your account and also figure out ways to convince the creditor to make payments in full.
• Consider bankruptcy as a last resort – If you have completely no other options and your debt amount is over $10000 you should consider filing for bankruptcy. If an account goes to collections and an agreement can not be made, collection agencies can easily pursue the debt.
It is really difficult to find out winning strategy but these seven measures should be considered before you go ready to negotiate with collection agencies and avail the services of debt relief agency.
