If you haven’t gotten on the debt collections calling list you are doing well. Once the harassing phone calls begin, the pressure to find a way out of bad debt becomes stressful. It isn’t just bad credit card debt which has collector’s calling. Overworked budgets have landed folks in trouble with medical payments, cash advances and even student loans. When there is no money left to pay the tab, loans in default will go to collections.
Cash advances may be no credit bureau check loans, but they will be sold to collections agencies when left unpaid. Once this happens, your credit score will be lowered just like with any other debt. Student loans are a debt to the federal government; they will even garnish your wages if they have to. Medical billing agencies will try to get a payment out of you, but once it is sold off to collections, it acts like any other default account.
Work with the creditor, billing department or direct cash advances lender prior to collections.
Avoid the collections like the plague! Do whatever you can to keep your account in good standing.
- Many problems begin with skipping payments. The fees added to the balance can often tip the balance over the limit and accrue even more fees. Take the first missed payment as a sign of trouble. It is time to reevaluate the financial situation.
- If you can only afford to make minimum payments you are dancing with trouble. Any additional cost within your budget will create havoc in your finances. Once that ball starts spinning out of control, one or more of your accounts may be at risk.
- If your credit cards are completely or nearly maxed out, there is no other way to pay for an emergency cost without money in the bank. This is the scenario for many cash advance users. The trouble comes once it is time to pay for the short-term loan in full with fees.
- Once you do run into trouble, there has to be some realistic proactive communication concerning your creditors. The sooner you call and explain your situation, the more willing they will be able to work with you. Calling after payments are missed will lessen the chances that the creditor will work with you. They want you to make payments so use good communication skills and let them help you find a payment solution. The creditors are business people, and they ultimately want to be paid, they will work with you instead of sending you off to collections.
- Whatever you do, don’t pretend debt will go away on its own. Once a debt collector gets a hold of your account, you have seven years of continuous reminders that you owe money.
Debt collections is a business. People get paid to make contact with you in order to collect money. What seems like harassing phone calls to you, is somebody’s 9-5 job, with or without commission. Keep your finances fresh in your head so there are no surprises. Build a savings account for emergencies. Even if you can only manage to save a few hundred dollars, it will help in a pinch rather than pay the fees associated with cash advances quick money loans.
