Debt Collection Management

After releasing the loans borrowers apply for

, the collection of the after payment can sometimes become so difficult. The thing is, while the loan is still under process, a borrower will be all willing to comply to anything the mender has to say, but then payment time comes, borrowers sometimes make the best of excuses.

The threat of losing a good credit standing has often become a major deterrence for most people who make loans. This has been used by creditors and the debt collectors that they hire to do in-house collections or phone call collections to "encourage" borrowers to pay on time. However, debt collectors can sometimes become very annoying and some of them even resort to scare tactics to push borrowers into paying up their debts. Here are some tips you can use to manage these kinds of debt collectors without necessary risking them reporting ill about you and thus damage your credit standing.

1.Be Mindful of Notices

Creditors and their collectors would usually send you formal letters or formal phone calls to remind you of your after payment. DO not avoid such communication. Avoiding these people will only worsen the situation. The best that you can do, is inform them of your real fiscal situation so that they may offer you payment mode alternatives. This means that you don't necessarily get away from paying your debt, what you avoid is a possible harassment from the collector part because of lack of knowledge why you are not able to pay on time.

2.Validate Authenticity

Sometimes, borrowers are deceived by some opportunist into paying to them rather than to the creditor whom the borrower owes money from. They can do this by pretending to be the collector or the new agent hired by the creditor to collect payments from you. Sometimes, they even arrange new payment schemes such as convincing you to pay in lump-sum. To avoid these circumstances from happening after validate the identity of the collector who comes to you. Call your creditor if you are in doubt or when you receive a letter, verify the origin of the letter before making any payments.

3.Keep Proof

Keeping all receipts and acknowledgement notes your creditor or your collector gives you can save you from a lot of headaches in the future. It can even settle disputes between you and your creditor or even between the collector and the creditor himself. Records can be used as substantive evidence whenever lawsuits are filed to you with respect to your loan. It can also make you see how much you still need to pay or how much you have actually paid which can be very helpful if you are extra conscious about how the loan affects your credit standing.

4.Disallow Harassments

If all else fail and harassment does exist, the best that you can do is not entertain the harassment. If possible, record conversations which involve harassments and report such behavior to your creditor or use it to invoke your consumer welfare rights.

by: Morty Landers

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