Debt collectors can be a pain when you are behind on your bills. They may call you at all hours of the day, show up at your house or work, or even threaten you. Sometimes the temptation can be strong to avoid them altogether, but does dodging debt collectors make sense? Probably not. This article will explain why.
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What Are The Consequences of Dodging a Debt Collector?
When you borrow money, you enter into a legal agreement to repay that debt. If you fail to make payments, your creditor may hire a debt collector to contact you and demand payment. When you don’t respond to a debt collector, they may sue you to collect payment. Wage garnishment, property seizure, and jail time are all possible outcomes.
Dodging a debt collector can also negatively impact your credit score, making it more difficult and expensive to borrow money in the future.
So, while it can be tempting to ignore a debt collector, it is usually not a good idea. If you are having trouble making ends meet, other options are available.
How Can You Tell If You’re Being Contacted By a Debt Collector or Not?
If you’re behind on payments, it’s important to know the difference between a debt collector and other types of creditors. That way, you can budget accordingly and be prepared to negotiate. When a debt collector is contacting you, they will usually:
- Inform you that they are collecting a debt and that you owe money to the creditor.
- Give information about the original creditor, how much you owe, and how to pay the debt.
- They may also try to pressure you into paying the debt immediately.
- They may tell you what steps to take if you dispute the debt.
What Are Your Rights When It Comes To Dealing With A Debt Collector?
You have certain rights when dealing with a debt collector, as set forth by the Fair Debt Collection Practices Act (FDCPA). This is a federal law that governs the activities of debt collection agencies. Some of the rights stipulated in the FDCPA include:
- They must identify themselves whenever they contact you and tell you they’re trying to collect a debt.
- They may not contact you at unreasonable times or places. They’re not allowed to call you before 8 am or after 9 pm.
- The law prohibits agencies from using abusive or harassing tactics when collecting debts. For example, an agency cannot threaten to harm you or your property.
Are There Any Other Alternatives to Dealing With A Debt Collector?
When you can’t make a payment on time, you can do a few things to avoid getting calls from a debt collector. They include:
Reach Out To Your Creditors
First, try to contact your creditor before the payment is due. Many creditors are willing to work with you to set up a payment plan or extend your payment due date. This could help you avoid falling behind and incurring late fees.
Consult A Debt Negotiator
If you cannot reach an agreement with your creditors, you may need to seek professional help. A debt negotiator such as Freedom Debt Relief can work with your creditors on your behalf to reach an acceptable resolution for both parties. They may be able to negotiate a lower interest rate, waive late fees, or set up a payment plan that is more manageable for you. While there is no guarantee that a debt negotiator will succeed, it’s often the best option for those struggling to make payments.
Consider Filing For Bankruptcy
Filing for bankruptcy should be considered a last resort. But if you cannot repay your debts, it may be your best option. It will allow you to discharge your debts and get a fresh start. But it will also have a negative impact on your credit score, making it more difficult to borrow money in the future. You should speak with an attorney to see if bankruptcy is right for you.
So, Does Dodging Debt Collectors Make Sense?
The answer to this question is simple “Don’t ignore your debt; it will not make it go away”. It’s important to face the problem head-on and take action to resolve it. Otherwise, you may find yourself dealing with more late fees, interest charges, or lawsuits. Always remember that you have options, and there is help available.