Well first things firsts, let us define what debt is. Debt is a sum of money that is owed or due. It is basically a sum of money that is borrowed from one party by another.
A debt collector is someone who has been commissioned by an agency to collect a debt from you. If you hear from a debt collector on you paying up your debt, then you are in some deep trouble. A debt collector will not take no for an answer.
What to do when faced by a debt collector?
Well, the most reasonable thing to do is ignore his calls. It may sound childish, but if you pick the call up, the collector may not listen to your excuses to why did you not pay your balance. The situation then can get really tricky.The debt collectors will do anything to make your life miserable and make you pay your debt. They will hound you multiple times in your workplace and homes. This is all a humiliating process.
When faced by a debt collector, and you do not have the money to pay back, then try to make a coherent story on why you cannot pay back the debt and when will you do it. This will give you a little more time to think about your actions.
What will happen?
- When faced by a debt collector, your credit score will suffer quite a bit. This will appear on your records even if you work with your debt collector.
- Your debt would grow. You can ignore your debt collector, but you cannot ignore the debt. Your debt will grow over time with interest.
- Your friends and relatives will be contacted. It may be illegal by law for them to discuss your financial statements in front of others, but it will not stop them from contacting your friends and family.
- When communication with you fails, the debt collector has the rights to sue you for your debts. Even though you can win the court case, it will be a rather exhausting and miserable process.
- When you are communicating with the collector, make sure to take notes of what happened and what was communicated. If any illegal threats were being made to you, you could take note of the time and words, to be safe.
So basically, try paying your debts off and when confronted with debt collectors, try to work with him, to save yourself from all the troubles.