Debt Collectors Can Ruin Your Credit If You Let Them

It is something that no one is proud of; having a bill go to a debt collector.  Most people do not realize however that if they allow it to happen, debt collectors can and will ruin their credit.  Fear not, there are things you can do to keep this from happening.

First and foremost figure out who you owe.  If you only owe one company this should not be too difficult as you will have only gotten a letter from one collection agency, and bills from one company.  If you owe many places, you will need to figure out what bill went to what collection agency.

Do not ignore these bills, doing nothing is the worst thing that you can do.  Instead you should give the companies that you owe a call and see if they have any financial assistance. Often times people do not realize that some companies do offer financial assistance, or they know that the company offers it but they do not apply for it.  It hurts nothing to ask and apply. The worst that can happen is that you are told they do not offer financial assistance or that you do not qualify.

If you do not qualify for 100% financial assistance then you need to call the debt collectors that you owe and talk to them about payment plans.  More often than not debt collectors will be willing to work with someone who is willing to call them and talk to them, if you ignore them then they may be less likely to want to help you out.  Find out what sort of payment plan you can work out that they will accept and you can afford.

The longer you allow these bills to remain with the debt collectors and not make payments on them, the worse it is for your credit.  If you ruin your credit you will have a very hard time getting a loan when you need one even if you did finally finish paying off the debt collectors.

 There are many people who have the worst idea of debt collectors, they think they are heartless people who do not care about other peoples’ situations.  The truth is they are doing their job.  You just need to work with them.  You will make their job easier and you can avoid ruining your credit.  Everyone falls on a hard time at some point in their life; it is how you handle it that matters.  Do not ruin your credit over a hard time in life, make the right decisions and learn from it.  Do not let the debt collectors ruin your credit because you let them.