Whilst there is nothing wrong with being in debt, mismanaged debt or being in debt which you can’t afford to pay off is a very big problem and one which is causing untold damage to many lives. People think that they are in control of their debts but it doesn’t take much for them to be behind on their payments and then they start receiving the inevitable calls from the creditors, asking for payment. In some cases people will borrow again to cover what they owe, and that is were they end up in problems. What often happens is that a company like Brennan & Clark Collection LLC will get involved, a debt collection agency, and here is what they are all about.
Debt collection agencies are often confused with burly loan sharks with aggressive tendencies, this is not the case at all. In fact debt collection agencies are just normal companies who will chase up debts. They will, if required, be able to get a court order from a judge to take goods to the value of what the person owes, but this extreme step will only be taken after all other avenues have been exhausted.
The reason why these debt collection companies exist is very simple, the original lenders would prefer to take a cut price on the debt that is owed, rather than invest their resources and their money on chasing up someone who isn’t going to pay, or who makes it difficult to get money from them. Let’s say that someone owes $10k t a bank, the bank may well sell that debt to an collection agency for $8k. This gives the bank money in their pocket which they may not have recouped otherwise, and it gives the agencies more wiggle room when it comes to their clients, they can offer to freeze interest, pro take a reduced rate of payment.
The extreme example that we gave above often occurs because people don’t want to speak with debt collection agencies, preferring instead to ignore them in the hope that the problem goes away, but it will not. The debt collection agency will send letters and make calls, but if someone just doesn’t reply then they do have a right to take stronger action.
If you are under a debt mountain and you can’t afford your way out of it, then you should make every effort to work with the debt collection company, be honest with them about your financial situation, and allow them to help you to repay the remainder of your debt. In truth these agencies don’t want trouble any more than you do, all they want is to help you pay the debt back, which of course is the best case scenario for everyone involved.
If you are contacted by a debt collection agency, be sure to do all that you can to work with them and not against them.