How To Respond When Your Debt Is Sent To Collections?

Life can hit us hard anytime, leaving us sick for months and giving us several bills to look after. Or you may be unemployed for a long time and must deal with unexpected costs and bills. 

In such cases, we usually borrow money to keep life going. 

However, sometimes we can fail to pay back the amount and end up with hundreds of calls from creditors. Ultimately, they can also hire a debt collection agency to pursue the money you owe to them. You will likely be informed about it via letter, mail, or calls from the collector.

Read on to understand how to respond when your debt is sent to collections.

Stop and take a breath 

You may panic upon learning that there is a debt collection agency after you to retrieve the amount you owe to your creditors. In such situations, you may be tempted to call the creditor and explain why you cannot pay back the money and request for some time. However, it will not serve any purpose, as collectors are well-trained to take advantage of your desperation in such situations. They may corner you into an obligation to pay the debt in full. Instead, you should pause and try to understand the overall situation. Consider asking a friend or family member for some tips to calmly handle the collectors when they do inevitably call you.

Decide what you want to do 

You can request a settlement with a practical repayment proposal while considering how much you can afford to pay monthly. However, if it is not your debt, you can raise a dispute against it. Please note that a debt close to the end of limitations allows you to negotiate better. 

Call the collection agency 

Once you have a repayment plan, reach out to the debt collection agency and request them to verify the debt in writing. They will be bound to return your request before starting with debt collection again. 

It is advisable to take notes throughout the call with the collector and note down important information, including the details of the creditor, the rate of interest, and the debt amount. 

If you wish to negotiate, do not disclose the amount you are willing to pay; instead, let the collector tell you the amount and then think about it. 

Hire a third party for help 

It can be intimidating for many people to deal with debtors or collectors. Therefore, we recommend you hire a third party, like a financial advisor or lawyer, to help with the debt settlement. Make sure to get an estimate about the cost of hiring them to avoid overburdening yourself with more debts.

About Us

Taurus Collections (UK) Ltd. can be your one-stop destination if you want to successfully boost your odds of collecting debts. Use our  Late Payment Calculator to calculate your outstanding credit amount today. We help our clients with certain debt collection services that include:

• Business financing
• Outsourced credit control
• UK & international credit checking
• No win-No fee debt recovery

For more details, call us at 0800 069 8777 or 01332 565 350 (Derby). Send your concerns to enquiries@tauruscollections.com. You can also connect with us on Facebook, Instagram, and Twitter.