If you are in debt and you are contacted by a debt collections agency then it is absolutely vital that you do not just ignore their calls or their letters. The reality is that debt collections companies like Brennan & Clark LLC are there to help you more than anything else. Many who are living in debt fail to understand this and in ignoring the issue they are only making things worse for themselves.
Today we are going to talk a little about why these places exist, and how they can extend support to someone who isn’t able to manage their debt.
What Debt Collection Agencies Do
What these companies do is that they buy debt from a lender at a lower cost, let’s say they pay just 60% of what the debt is worth, without interest. The debt collection agency then reaches out to the person who owes money and is able to work with them to get the bet repaid as quickly as possible. This is a win for everyone involved as the original lender is able to count on at least some money in the bank and they can cancel an outstanding debt, the agency is happy because they are able to get a great discount on the debt which they can make money from, and the debtor should also be happy that they will have options in front of them.
Benefits to the Debtor
The benefit to the person who owes them money, contrary to what many of them believe, is that they can reach a realistic agreement with the debt collection agency to pay less money for their debt. The debt collection agency will be able to extend some of that discount which they got when they purchased the debt, to help freeze interest for the debtor or to give them a great offer for a one-time payment that will settle the debt.
The perception of debt collection agencies is that they are brutes who come and take all of your possessions but this is simply not the case at all. If however the debtor fails to reply to the agency after they have tried multiple times, then yes the agency may go in front of a judge to be given permission to take assets to the value of the debt, but this only happens in extreme cases.
What To Do?
If you are contacted by one of these debt collection agencies then it is essential that you make contact with them. When you do so you simply need to be honest about the amount of money that you owe and to who, as well as how much money you make and how. Using this information they will come up with a realistic payment plan which you must stick to. This is essentially your last chance at getting your debts paid off, failure to do so could result in losing or having to sell possessions, or having a court order against you.