Have you been contacted by a commercial collection agency for paying can debts to the original creditor? Are you confused about whether or not to pay them? This article is the perfect read for you. It is true that whenever any original creditor hired the help of these experts to make you pay back dues, they will utilize a lot of tactics. Some tactics may be in your favor and some not. However, the notion that all agencies are big bad wolves, is wrong. Of course, there are a few bad apples in the basket but that doesn’t mean all of them are unethical. Usually, the reputed ones are polite and understanding about your situation and give you great plans to pay back the debt in a way that doesn’t make it stressful.
However, paying back debts, in general, is a huge financial worry. Many think about not paying it at all and face grave consequences. My authentic information on whether or not to pay back debt collectors will help you decide the best solution for yourself.
Want to know more? Read on below!
Old Debts are a Huge Financial Burden
Before you decide on not paying back dues, let me address an important factor here- not paying the agent who offers collection agency services will not take away the debt. It is just like saying that you desire to unsee the truth, doesn’t make it less real! At an eye-level, it might be easy for you to decide that paying back the agency is a Herculean task but not doing it will land you in a big financial mess.
Evidence of the debt that is unpaid will remain on your credit for a long time unless you decide to pay it. Even if your debt is a few dollars or thousands the effect will always be tenfold on your credit score. When you go to pay for any service with your credit card, the owners will be hesitant to sell you since you have unpaid debts. No one wants to take the risk of selling you anything, in fear that you won’t make the payment in the future.
The lingering debt that you owe to the original creditor will lead to further loan problems as well. If you want to take new loans, not any authentic source will be willing to consider your case. Mortgages, student loans, home loans, car loans, and many other kinds of loans will get out of your reach. Don’t think of it as a slight difficulty. In America, 34% of homeowners were refused loans from banks because their credit scores were poor. It is a significantly bigger problem than you can imagine.
If you now think that instead of buying a home, you can rent one, think again. The way your credit score has lessened will not make you the ideal candidate for home renting too. Even some online streaming networks also do not allow people with pending debts to buy their service. So basically paying off the agent who offers debt collection service is the best way to go forward.
How To Decide Whether Or Not To Pay Debts?
Considering the underneath mentioned factors will help you decide whether or not you should pay back a collection agency Houston Tx-
If you do not make haste in paying the agent, the agency will file a lawsuit against you. And these lawsuits are not to be taken lightly. For most areas in the USA, the time frame in which you have to respond to the lawsuit is two weeks. Rather than hiring an expensive lawyer, sit with the debt agency and chalk out a plan to make payments.
If in case you still decide to not make the payments and somehow the debt recovery agency wins the case, they will take more than the money you previously owed. They will garnish your earnings to make you pay the dues. It means the debt will get paid from your salary. Isn’t it much when you get to decide which account, or way the debt will get paid? To utilize this way, plan it out with an agency that makes commercial collections Texas.
The only reason you shouldn’t pay the agency is when-
- The debt is not yours,
- If the original creditor is trying to frame you,
- If the agency doesn’t show you the demand letter, etc.
However, most professional agencies like Nelson Cooper & Ortiz are careful with the way they handle debts since it’s a legal issue. I have mentioned all the deciding factors for choosing to pay or not to pay the debt. Still, as an expert, I would suggest you make the payments as soon as possible to avoid future complications.