Being deep in loans and credit card debt is hard enough – but add to that the negativity and harassment of debt collectors, and you’ve got yourself a major headache.
Fortunately, we have today guest blogger, Christopher, who shares below three common lies that debt collectors tell.
His examples may show cases for the US, but knowing how it is in the country – I can say that they also apply to the Philippines.
Additionally, he does say a lot of very good lessons that anyone, wherever they are, must learn.
Let’s now read what those three debt collector lies are.
If you’ve ever been in the situation where you had to deal with a debt collector then you’re already aware than they can, at times, be very shady individuals.
They’re doing their job and their job is to get money from you. People have often needed to get cash advances, and other drastic measures, to pay off debt but you don’t always have to feel like the sky is falling.
Realize that you do have options and you shouldn’t trust someone’s word. Educate yourself first.
At times, a debt collector’s tactics can be rude or even obnoxious but sometimes they’re flat-out lying or misrepresenting the facts in order to scare you into paying them.
If you haven’t had to deal with a bill collector, it’s good to be aware of some of the common lies that debt collectors will employ.
Lie 1: Pay Your Debt To Improve Your Credit Rating
It’s always good to pay off your debt but not everyone is in the position to be able to throw a lot of money at their debt all at once.
It’s true that if you’ve been chronically late on payments that it could adversely affect your credit rating but, paying it off immediately isn’t going to change anything.
The damage has been done so don’t kill yourself paying every cent back as soon as possible for the purposes of getting a better score.
In some cases, if you’ve gotten formal writing from a creditor, you can have the bad credit affect expunged but this is only in certain cases. First talk to your creditor about this and make sure to get it into writing.
Lie 2: Post-Dated Checks Will Solve The Problem
Any verbal agreement you make with a debt collector over the phone won’t hold up in court. Debt collectors often tell people that if they send a post-dated check that the problem will be solved. This is rarely the case.
You don’t know what’s going to happen with that check. You’re sending them your bank number and account information and collectors have been known to cash post-dated checks earlier than you previously agreed upon.
If you don’t have the adequate funds in your account you could get hit with hefty fines from your bank. Instead, use money orders and the like to make payments.
Lie 3: Only Immediate Payment Will Keep You Out of Court
It’s a common misconception that, unless you pay immediately, a collector will garnish your wages or take you to court.
Under the Fair Debt Collection Practices Act, collectors can’t legally threaten to take you to court if they have no intention of doing so nor can they casually garnish your wages. There is a structured legal process behind both of these approaches and you’ll be given notice if this happens.
It’s important for anyone to approach borrowing and debt payment responsibly. If you’ve found yourself in debt, you should work with a professional and find the best way to get your finances in order.
It’s also important to understand that you do have rights and you shouldn’t let debt collectors scare you. If you don’t have the immediate cash on hand, don’t get rattled by threats.
In many cases this is nothing more than posturing and empty threats. Instead, take a breath and deal with the situation rationally and work towards paying off your debts in a timely, yet responsible, fashion.
This guest post is contributed by Christopher Lillian, a debt consolidation specialist from California.
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