Falling behind on payments can trigger collection calls. These initially tend to be courtesy calls to serve as a “friendly” reminder to pay your bill.
Late payments are a clear sign that you need to speak with a credit counselor immediately. It may already be too late if you have fallen several months behind.
Even one late payment is a sign of problems, which could put you at risk for increased interest rates and higher minimum payments. It is important to get help before the problem gets worse. Once an account is charged off and sold to collections (6 months late), even credit counselors lose leverage to gain benefits on your behalf.
At this point, the option most likely to help you is a debt management program. Creditors that approve your enrollment typically stop collection calls immediately.
Re-aging through a debt management program can return your accounts to current payment status. This stops the calls.
If you delay getting help until your account has been charged off, you face the following options:
- Debt settlement: While usually only beneficial for collection accounts, this could save some money. Find out what few advantages and many disadvantages are associated with debt settlement.
- Judgments: Failure to respond to collection attempts could result in a court order to pay.
- Bankruptcy: The laws have changed. Find out if bankruptcy is justified, and what it could mean for you.
Please note that if you do not get debt counseling soon enough, collection calls will continue until either a settlement has been paid, judgment has been paid, or debt has been discharged through bankruptcy. If you can get help before accounts are charged off, you are strongly encouraged to do so. Contact a counselor today!
