When you’ve got yourself into some financial trouble, and a collection agency is trying to contact you, putting your head in the sand like an ostrich and pretending it isn’t happening is tempting, but unproductive. The chances of the problem going away by itself are slim to none, so you should deal with it head-on.
Also, as per San Diego debt relief attorney, Jeffrey D. Larkin, ignoring a creditor will only make the situation worse. Here are some reasons why:
The collection agency isn’t going anywhere
A debt collector gets a percentage of what you pay to settle the debt. Therefore, they will pursue you almost relentlessly to make you pay up. While there are accepted practices with which they are expected to conform, they are entitled to remain in touch with you. Keep a record of all contact with the collection agency, especially if you feel that you are being harassed.
The debt might not be yours
Mistakes happen, and you might find a debt collector trying to contact you about a debt that isn’t even yours. If you speak to the collection agency, you might be able to get it written off by disputing it with the debt collector or the original creditor. It might be an uphill battle, but with someone like San Diego credit repair attorney Jeffrey D. Larkin on your side, you can get the debt canceled and save your credit score.
You lose the chance to settle the debt
Sometimes, creditors and debt collectors will reduce the total of the debt just to get something out of you instead of nothing. You can take advantage of this opportunity by negotiating with them to pay less and complete the payment process.
Every time you don’t pay a debt, an interest charge is added to the total. If you keep ignoring a collection agency, the amount can spiral out of control, leaving you with a bigger financial headache.
There are legal consequences
Creditors and debt collection agencies are obliged to make submissions about unpaid debts to credit reporting agencies. A late debt can put a dent into your credit score, and an unpaid debt is even worse. Rehabilitating a bad credit score is not an easy process, and you should avoid having to do it wherever possible.
Creditors are also entitled to sue you for unpaid debts. The inconvenience and embarrassment of court appearances and having a judgment against your name are seldom worth letting a debt issue get this far.
At the Larkin Law Firm, we work hard to represent you when a collection agency is trying to recover funds from you. As a San Diego debt relief attorney, Mr. Larkin offers several services, including negotiating with collection agencies on your behalf, representing you in a lawsuit, and getting your credit score back on track.
Contact us on (760) 316-6669 for a free consultation with debt relief lawyer Jeffrey D. Larkin to find out how we can help you.