Those who have had an experience with overwhelming debt may have also had an encounter with a debt collection agency. Although it is not the case all of the time, some debt collection agencies purchase an individual's debt in order to profit from the debtor's payments.
Contact the Company
Call the debt collection company and write down pertinent information such as their physical mailing address, fax number and a direct phone number to call in order to speak with an agent. Depending on the situation, you may want to try and consolidate the debt or bargain with the company. At the very least, you should set up a payment plan that is within reason for your financial situation. Some companies that buy debts do not charge interest and will allow some wiggle room with the size of your payments if you are persistent in asking for it.
Beware of Lawsuits
Although it is not necessarily common, debt collection companies may pursue a lawsuit if you have not paid your debt. However, according to Card Report, most debt collection companies will not pursue lawsuits for debts smaller than $1,500 since the amount of money invested in a lawsuit would not be worth the payoff.
Bargaining
Bargaining with the debt collection company is one tool that may be useful before agreeing to make payments. Bargaining should be done through writing letters so that you can have the terms in writing for your payments. Be sure to keep the original documentation since collection companies may lose their paperwork or try to get more money out of you.
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