For some people out there with credit card debt problems, it can seem as if getting out of debt is absolutely hopeless. This doesn’t have to be the case, though. If you are smart about your debt situation, you can find a way out before it gets to be too late. One of the debt relief options out there that many people have taken a hard look at is consolidation. When you look at credit card debt consolidation companies, you will see that most of them are looking to help people get out of debt as quickly as possible. So what are the major advantages of these consolidation programs?
By eliminating the Debt collection companies and dealing directly with the creditor. The commission, on the money they collect is going to be anywhere from 25% all the way up to 80% depending on the type and age of the debt. If they were getting paid a commission of 60%, and you paid the $6637.95, the creditor would receive $2,655.18 and the debt collection companies uk would get paid $3982.77!
So, other than calling you every 20 minutes, what do all those people do every day? A fair amount of time is also spent suing people. When the debt collection industry sues you, they expect you to do nothing; that happens probably 3 times in 4. Here’s what happens when you become a member of the “just ignore it” club.
Unfortunately, even if individuals start off paying off their credit card balance on a monthly basis they often end up in a situation where they’re unable to pay off their balance. And when this happens repeatedly the debt can mount up.
Now what do you do with the check? Probably one of two things: either you deposit it into your checking account, or you take it to a merchant for instance, a car dealer. In either case, the check, when deposited goes directly to the bookkeeping department where the numbers are transferred from the check and are added to your account as a bookkeeping entry. Once this entry is made a bank will say that its deposits have increased.
Pay attention to any inquiries that are being made for your credit score and credit report. Anytime someone pulls up your credit, the inquiry is noted on your report.
When you are first contacted, the representative has to advise you that s/he is attempting to collect a debt. You are entitled to the name of the creditor, the amount of the debt, and how much is being claimed is outstanding. If you request it, the agency has to provide you with written verification of the debt. You must request this information within 30 days of the company’s first contact with you. You can notify the agency in writing that you do not wish to be contacted by the company anymore and all contact with you has to cease. However, the company will either sue you, report you to the credit bureau, or pass the debt on to another agency. You should make a good faith effort to resolve the matter.