Here’s the first thing you should know about debt collection: The people calling you are not the people you borrowed from. In actuality you are talking to someone who purchased that debt for pennies on the dollar and is trying to make a profit on it.
If you have a collections account on your credit report it is important to know how this will affect your credit score and what you can do about it.
Let’s start with the basics… What does it mean for your credit?
If you have a collection account, your credit score may drop by a substantial amount. It typically is correlated with how high your credit score is. Therefore, the higher your score the more points you can lose.
As you know, having your credit score drop from having an account in collections can impact your financial future. You could be denied for credit cards and loans.
Realities of overdue debts…
The truth is a creditor could sue you and win a judgment, allowing them to garnish your wages or hire a sheriff to come get your property. However, the chances of this are slim.
Many consumers feel overwhelmed by their debts and file for bankruptcy because they think it is their only option. DON’T DO THIS! This should only be considered once all other options are exhausted.
What should you do?
Call or email me, asap! Through a careful analysis of your situation, I can determine the necessary steps to settle your debt and move toward rebuilding your credit.