What Happens if I ignore a Debt Collector? Ignore the debt collector at your own peril, as the truth is they will always be a step ahead of you. Debt collection is a business, and once you are in their hands, they will pursue you until they get an outcome, and it probably won’t be a good outcome for you.
A debt collector is a professional Recovery Agent who usually gets paid based on results. If someone owes you money, and you are not getting any results when sending bills, and phoning them it is time to put the debt in the hands of a Debt Collector.
They will try to collect the overdue debt on your behalf, and usually, charge around 15% of the outstanding amount to do so. Debt Collection is legal, and your creditors have the right to get their money back,
This will depend on whether your debt is a personal or corporate debt. The collection agency will quickly identify the willingness and ability of the debtor to pay and make an arrangement for the debtor to make a regular payment.
If a bill is 90 days overdue, that is too long to go without payment and the future success of your business depends on regular cash flow.
Pick up the phone, during business hours, and ask for repayment today. If the client refuses or makes excuses or puts you off, it is time to call the Debt Collection Agency. Your chances of recovering a debt of over $50.000 decrease with time, so don’t wait.
In these difficult times, when many have lost their jobs and are living on credit cards, debt is becoming more common.
If a debt collector calls you, you have obviously been unable to pay, but before you return the call there are some things to do. You want to be well prepared before you talk to the debt collector.
Make the call to the Debt Collector, and ask for time to consider what they are saying, you need time to process it and to talk to someone else about it. The Debt Management Learning Center will talk to you and advise you on your next move. (There are many organizations who will talk you through it).
Once you have had advice and worked out a budgeting plan you will be ready to talk to the Debt Collector. They will most likely accept what you are offering to pay every month, as the alternative may be bankruptcy which would mean they would get nothing.
Once you have a plan in place you must stick with it for the term of payment.
It is important not to damage your credit rating, as once a default is entered on your score it will be there for seven years. A good credit rating is essential to get a Home Loan Mortage, you will need a score of 740-799 to get a good Mortgage.
A credit score rating is like an exam mark for loans, so it is worth working towards a good mark.