Quite often, we make some major mistakes in managing our money while purchasing a product or service, such that we seek a loan expecting that we will be able to repay it on time, but we are not able to do that in the requisite time. Bad financial decisions and the inability to manage money attract calls from debt collectors, which adds to our existing list of stressors.
- Failure to pay the money borrowed on time, coupled with an increase in interest rate with every passing time, is already stressful. On top of this, when debt collectors Canada call up regularly for debt repayment, we cannot bring clarity in thought when we do not have sufficient funds. Let’s find out how you can deal with such calls in these circumstances from the article.
How To Deal With Debt Collectors?
When you have not yet repaid your debt completely but are in the process, it will be useful for you to consider the following points:
- Don’t file for bankruptcy immediately – When you have crossed the promised time to pay the debt and are now getting calls from the creditors, it may be tempting to file for bankruptcy. However, it is the last thing that you should consider.
- Know your transaction records well- It helps if you know the details of your transaction in and out. Credit card companies and large financial companies often roll out debt collection tasks to debt collection agencies when debts are overdue. Sometimes, even those accounts that should not have been included in the list, such as debts that have been settled. Therefore, when a debt collector calls you, it helps to know if the payment for the debt has already been cleared. At other times, the name of the person with whom the transaction has been done and the amount may seem unfamiliar to you. Look out for these details because, at such times, chances are that the debt collectors have called you because you may have a name similar to the actual person.
- Ask for expert advice – Get in touch with professionals who can assess your financial situation and offer you guidance tailor-made to your situation regarding what methods you can avail of to repay your debts.
- Know the laws – Read up on whether the collection agency is authorized to collect debts in your jurisdiction. Know when the agency is allowed to make calls beyond which you can file a complaint against them.
- Don’t give in to pressure on the first call – Shamed and overwhelmed by being unable to repay debts on time make them debtors easy prey to the collectors who give in to the pressure and make payments without reading the terms and conditions thoroughly. Note that making a payment of as low as $5 or $10 is acknowledging that you have a debt to pay and can backfire you, resetting the clock for the statute of limitations that can, in the worst-case scenario, result in a lawsuit.
Instead, keep the call short and formal when the collectors call you for the first time. Do not make any promises or give out any payment-related information. Ask for the debt information and buy time from them to think this through and say you will connect with them later.
It is a good practice to ask for proof of the amount the collector claims you should pay. They are required by law to provide you with the information they request. It is easy to be overwhelmed with debt and give in to whatever the collectors ask. However, some knowledge and composure can help you sail through this.