Debt Collection Woes: Facts and Tips to Help You Pull Through
It’s summer in the U.S. but a recent study by the Urban Institute, a social research think-tank reveals a chilling fact about debt in America: 1 out of 3 adults or roughly 77 million Americans with a credit history, have a report of debt in collections. The survey found these debts range from as low as $25 to as high as (gasp!) $125,000. The average was pegged at $5,200. Many people are still feeling the effects of the last economic downturn. With an unstable economy, a dismal job market and the fact that almost everything in America revolves around credit, you can easily predict that millions of Americans will have a debt problem. Nonetheless, life must go on. It’s no use blaming oneself or an unforeseen circumstance for a current debt problem. The best thing to do now is figure out what to do when you are part of the above statistic. Hang on as we discuss debt collection and what you can do to pull through from this situation. First off, are you being haunted by collection calls even at your workplace? If yes, then you have an account in collection. Collection calls start flooding your telephone when you start missing minimum payments. At such point, your account is already considered past due and will be sent to your creditor’s internal collection department. If you still can’t pay your debt by the 3rd month, then it now enters into a “default” status. From there, between 3-6 months, it will go in either one of two ways: 1. A 3rd party collection agency 2. In-State law firm