Mortgages | Car Loans | Personal Loans | Debt Consolidation | Credit Reports | Credit Cards





Debt Consolidation

 

Debt Consolidation Info:
-
Saving Money for Retirement
-Debt-to-Income
-Do-It-Yourself Debt Relief
-Causes of Debt
-Controlling Credit Card Debt
-Eliminating Credit Card Debt
-Compute Credit Card Debt
-Total Interest Calculator
-Basics of Collection Agencies
-Accounts in Collections
-Debt that is Not Yours
-Student Consolidation Guide
-Bankruptcy Alternatives
-Get Debt Free in 2007!

-Debt Advice


Mortgages
Auto Loans
Personal Loans
Credit Reports
Credit Cards

Home
 -Taxes
 -Managing Money
 -Credit Help
 -Checking Accounts



  


 


UNDERSTANDING THE IMPACT OF ACCOUNTS THAT GO INTO COLLECTIONS
Even if you miss just one payment, you are risking the chance of putting yourself deep into debt. Also, your creditor is going to assume that you have broken your agreement with them to pay your responsibility on time.

Your creditor will likely look to work out a payment plan for you before the send your account to a collection agency.

If your creditor is a bank, you need to contact them within 30 days of your delinquency. After 30 days passes, banks have much less flexibility to work a deal with you as a result of regulations.

Banks need to manage their risk and would match rather work with you than have unpaid loans showing on their balance sheets.

Avoiding your creditor is the worst thing you can do. It does not matter if you fell behind as a result of an illness or job loss. Ignoring your debt will only result in the creditor taking aggressive action against you by submitting your account to a collection agency.

But, before your account is sent to collections, your creditor must provide you with a "Mini-Miranda," stating "This is an attempt to collect a debt and any information obtained will be used for that purpose." You will receive this message either by phone, mail or telegram.

An account that has gone to collections will show on your credit report as charged-off or place for collections. Also, when your debt is sold to a collection agency, the original creditor no longer has any ties with the debt. In addition, a new record will show up on your credit report as a debt being paid to a collection agency. Both of these records will remain part of your credit for a minimum of seven years. You must pay this debt ASAP if you want to see it disappear after seven years. Obviously, your credit score is going to be adversely affected if you have an account that goes into collections.

Before allowing your accounts to go to collections, you should contact your creditor to see if you can settle with them.


 

Home | Apply NowCommon Questions | Contact Us | Debt Articles
Debt Advice | Debt Consolidation  Information

Pros & Cons | Debt That Can Be Consolidated | Credit Counseling vs. Loans
Consolidating Student Loans | Signs of Too Much Debt | How Debt Hurts You
FAQ | Secured vs. Unsecured Debts | Filing for Bankruptcy

1998 Star Loan Services Inc.. All Rights Reserved. Privacy