Have you ever had a call from a collection agency about a debt of yours? If so then you will know that it can be scary to receive communication from them because of a mismanaged debt of yours. There is a common misconception that debt is always a bad thing but the truth is that well managed debt can greatly help the lives of many. Poorly managed debt on the other hand is something which most certainly be avoided, especially when it comes to receiving communication or demands from a debt collection agency. We spoke to the guys at Brennan & Clark collection agency, to find out what we need to do to avoid communication with them.
Paying on Time
It goes without saying that the best way in which you can manage your debts is to pay your bills on time. For a debt to be sold on to a debt collection agency it requires that you have missed payments for many months, so the odd missed payment is not the end of the world, as long as you fix it quickly. Make sure that you are planning your finances ahead of time in order to avoid making any mistakes in terms of paying your bills at the right time.
Keeping in Touch
The guys at Brennan & Clark tell me that in many cases they have a debt passed on to them for someone who has lost their job or faced financial hardship for another reason. Unfortunately by the time that your debt has arrived at a collection agency, it will have already put a black mark on your credit file. What these people should have done, and what you should do if this happens to you, is to speak to the original creditors and notify them of what changes you have been through and how it has affected you financially. Creditors are not monsters, they simply want to be kept up to date as to what is happening with your end of the credit line. If you have lost your job or had changes to your finances, there are lots of ways that you can be helped, creditors can even give you a payment holiday of a few months until you are able to fix your financial situation. The key is to be honest and open with your creditor from the outset, to avoid it being passed on to a collection agency.
Unfortunately most people get themselves into a situation where they can no longer repay their debts, because they kept borrowing to cover older debts. If you are in a situation where you cannot afford to repay for whatever reason, do not borrow more. Doing this is like robbing Peter to pay Paul, an action which will only increase your risk of not being able to pay, and one which will only serve to cause you more stress and anxiety.
Be smart, be honest, pay your debts and you will be just fine.