Why should you avoid having your debt go to collections?
It’s better to deal directly with the original creditor than to have your debt sold to a collection agency. Collection agencies are often more aggressive in their collection attempts and may take extreme measures. How does this happen? Creditors are generally knowledgeable, experienced, and savvy people or companies, who have dealt with past due debts by their debtors.
You might say they’ve developed a thick skin when it comes to dealing with debtors. An “Original Creditor” is the first source of the money loaned. If the original creditor can’t get you as the debtor to pay your debt, they often turn the effort over to a collection agency. In some cases, the original creditor sells the debt to a third party – a “Debt Buyer” – who pays them a percentage of the total debt to be collected. In most cases, debt buyers pay pennies on the dollar for the debt.
At that point, the debt buyer owns the debt and can then proceed to collect
It’s better to deal directly with the original creditor than to have your debt sold to a collection agency. Collection agencies are often more aggressive in their collection attempts and may take extreme measures. How does this happen? Creditors are generally knowledgeable, experienced, and savvy people or companies, who have dealt with past due debts by their debtors.
You might say they’ve developed a thick skin when it comes to dealing with debtors. An “Original Creditor” is the first source of the money loaned. If the original creditor can’t get you as the debtor to pay your debt, they often turn the effort over to a collection agency. In some cases, the original creditor sells the debt to a third party – a “Debt Buyer” – who pays them a percentage of the total debt to be collected. In most cases, debt buyers pay pennies on the dollar for the debt.
At that point, the debt buyer owns the debt and can then proceed to collect
