When You Get a Call from a Bill Collector...

If you’re like any other person, you don’t want to be sent to collections for an overdue bill…whether it was an unforeseen medical expense that you got behind on or an unexpected change in your circumstances that caused life to spiral out of control a bit, getting behind on your bills can be a frustrating time. It can leave you feeling powerless and even fearful.

We understand that. We have worked in the debt recovery and debt collection business for a half a century. Most of the work we’ve done in the industry has been truly rewarding. We’ve helped people clear their names, restore their debts, improve their credit scores, and move on with their lives. In that time, and through those interactions, we’ve learned a handful of things about what to do when you’ve been sent to collections.

 What to Do When You’ve Been Sent to Collections

If you’ve gotten a letter in the mail or a call on the phone from someone trying to collect a debt, here’s some tips and advice to help you navigate the waters.

Talk


The tendency in these situations is to avoid the calls. This won’t make the issue disappear. It will only extend it. By answering the phone, by acknowledging the company and what they’re trying to resolve, you’re much more likely to find a resolution that will work for you. You can even get help on disputing the claim if you determine that the debt is not legitimate. By answering the phone, you could find yourself in a pleasant interaction with the person on the other side of the call. But if you don’t answer the phone…If you ignore the calls or letters…you’re not resolving the issue, which means your credit score will be damaged and the problem will follow you. 


Pay


This probably sounds simple and obvious. But it’s not saying, “Just give the people what they’re asking for.” It’s actually a tactic that will help you move forward and keep your credit score intact. Even deciding on a payment plan with the collection agency on the other side of the transaction is better for your credit. An account marked as “Current” looks better on a credit report than any debt that is considered owed and unresolved. Ideally, when your account is paid in full, you’ll be able to get the collection issue off of your credit report entirely. But it starts with making a payment. 


Strategize


When someone is sent to collections, they tend to let it dominate their mind. It’s often why it’s tempting to avoid it. But the strategy you take to getting out from under a bad debt will help you in other areas of your life. Once you’ve spoken with the representative on the other side of the phone about the debt, and if you’ve determined that you’re ready to put it behind you, then it’s time to strategize. Ask the representative on the other side of the call what some of your options are. What kind of payment plans are there? Can you pay a little bit now while you save up one lump sum? Can you settle on a lesser amount and still have it removed from your credit score? The point is that collection and recovery professionals are people too. They want to see you succeed and are trained to help you resolve this issue.

Debt collection can be a frustrating thing. At Viking Client Services, we’ve worked with thousands of people in just about every conceivable scenario. By far, those who are most successful when facing a debt collection issue are those who talk, those who show intent to reconcile the debt, and those who think strategically about the issue in front of them.