Debt Agencies

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Finding Debt Agencies That Really Work

Every so often, people find themselves with a great deal of debt on the hands, and limited resources to repay the debts. To that end, there are a variety of debt agencies around today that claim to be able to help. However do they work Here are a few thoughts on debt companies and what they accomplish.

Many debt agencies make rather great claims about saving the consumer a large amount of money every month, by working with creditors to lessen monthly payments. The consumer sends one monthly payment towards the debt agency, which then disburses the payments to the lenders. On the front end, this particular seems like a great agreement. However, what generally happens is creditors usually freeze the account, applying forget about interest, but also classifying the actual account as being inside arrears until it is paid off. This can detrimentally impact the credit ranking.

Next, while many credit card debt agencies are flawlessly legitimate, others are in the market to make a buck and may even not even work everything hard to bring your creditors into the fold. Watch for debt agencies that are looking a large payment at the start for their services. Several programs instead add a modest processing payment in the monthly payment the consumer makes to the company.

Last, beware of financial debt agencies that do not offer much in the way of personal debt counseling. There are a number associated with agencies around who offer classes along with other resources such as spending budget planning to help people get out of debt. Their focus is on helping people to develop practical and positive spending habits that will have them from getting into the same financial mess a second time. Check in your community for an agency that provides these types of services, and you likely will find a debt company that is really worth examining.

Comments: 18

  1. Alexander March 8, 2013 at 3:51 am Reply

    When a debt is passed to a debt collection agency how much do they charge the creditor for their services? A rough percentage will do.
    Thanks

  2. Bailey March 29, 2013 at 2:18 pm Reply

    My son of 25 has mild mental health problems and is taking prescribed medication and having counselling, but he is employed and does not live at home. He mis-understood advice in his bank when trying to cut his expenses and cancelled a standing order for a gym subscription, resulting in an outstanding balance of £80 pounds for the remainder of a 12 month contract. With very little notice the gym transferred the amount to a debt collecting agency who are charging £25 a month interest on a £20 subscription, and adding a further £25 for each letter they send (two in a week). Can they do this ? If they took him to court (which he would find difficult) can they sue for interest ?

  3. Katharina May 23, 2013 at 1:32 am Reply

    I’m looking for non profit debt consolidation agencies preferably in the Hampton or Newport news area.

  4. Corie May 28, 2013 at 6:56 am Reply

    Can I send a debt verification letter or do I just ask for the verification in court? I found out about the court date through the internet and advertisement I received from lawyers with a case number filed on it. I know that the debt agency is supposed to have enough time to respond. If so do I send it to the courts too?

  5. Kassandra August 6, 2013 at 12:37 am Reply

    I know when i made my agreement that the loan company( peachy) could take money automatically, but can the debt collection agency do the same, or do they have to seek payment off you?

  6. Felton August 15, 2013 at 5:54 pm Reply

    I am curious to know how do such debt collection agencies buy debt from credit card companies.

    I once heard a guy saying he purchased $2 million dollars worth of credit card debt for $10,000.

    He sent out some debt collection letters for people and at the end of the month he had made $30,000 .

    So how do companies buy and sell debt? Is there a platform for such a thing?
    @bdancer – Hi and thank you for your reply! It is very informative.

    Also I would like to know how and where can i purchase such debt?

  7. Bennie November 1, 2013 at 7:42 am Reply

    Im trying to get a car finance loan approved but a Vodafone bill from 2006 is stopping it going through, Vodafone are being useless and not being helpful at all.. Im trying to find out what the name of the debt collectors agency the bill has gone to so we can pay it and get our new car.. Any help would be greatly appreciated!

  8. Micaela February 21, 2014 at 11:35 pm Reply

    I want to settle a debt with a collection agency. Is it better for me to: (a) send them a letter saying if you will accept $x to settle the debt and a letter back saying it’s acceptable, I will send it to you within 5 business days; or (b) just send whatever money and say “Will you settle the debt for this amount?” Also, is it better to send the funds by cashier’s check, certified check or money order?

  9. Damion February 21, 2014 at 11:47 pm Reply

    Is it legal for a debt collection agency to increase a debtors monthly payements from say £40 to £50 a month even if the £40 was agreed by both parties. Is this not some form of breech of contract.

  10. Anton February 21, 2014 at 11:47 pm Reply

    I have several debts that are now with collection agencies. I want to fix this situation, but obviously I don’t have the money to just pay them. What options do I have? I am thinking about going the debt consolidation route. Any suggestions?

  11. Sanford February 21, 2014 at 11:47 pm Reply

    i recieved a letter today from a debt collection agency who were working on behalf of powergen claiming i owed nearly £900 for gas for the house i moved out of in nov last year.
    i spoke to powergen who agreed i owe them nothing and have said they will send a letter confirming this, esp as the account wasnt even in my name.
    They claim they have the name of the current occupant and therefore wouldnt have set the debt collectors my way. when i asked how they got my name powergen said they didnt know but it wasnt from them and that debt collectors have their own way of tracking people down. the debt collection agency are refusing to tell me how they got my name. How can i find out how they got my name and what effect will this now have on my credit rating…i am wanting to buy a house next year.
    I am appalled that they can send me a letter telling me to pay in 7 days or i will be taken to court for a debt that isnt mine and never would have been as i wasnt an account holder!
    hi robert c thx for that no they cant prove it as i am not responsible, it was a rented house and i have evidence form the landlord of the dates i moved out and what the meter readings were, powergen have also said they will send me a letter confiriming that i owe them nothing, so effectively the debt collectors are working without authorisation and sureky that cant be legal?

  12. Donita February 22, 2014 at 4:02 am Reply

    I’m a 25 year old college student with a combined debt of 26K. My assets are half of that at best. I was wondering if anybody has used or has knowledge of debt collection agencies. If you’ve used one, which one did you chose and why?

  13. Beau February 22, 2014 at 4:43 am Reply

    if i add my name to the register at my new address will my previous address show up on the register and can the debt agency see it?…its credit card debt from 9yrs ago…
    just looked online and it says that after 6yrs the debt becomes statue bard and the company cant chase me for it…

  14. Jerrod February 25, 2014 at 12:44 pm Reply

    I am thinking to try get rid of my credit card debt by employing a debt consolidation agency. Anyone knows a good and reliable one?

  15. Dorthea March 7, 2014 at 5:23 pm Reply

    I owe money to Verizon Wireless, which then transfered the debt to a third-party collection agency. When called the agency, the representative refused to send me any letter of notification or a bill through mail. They said that I had to pay right at the moment (threatened to ruin my credit for my whole life) and the only way to pay is over the phone.

    My problem is I don’t really trust this agency, who know what they’ll do to my bank account if I pay them over the phone.

    Any advice on what should I do?
    Thanks for the advises. I’ve called Verizon Wireless and the representative told me they can not help me in any way and I must pay through the collection agency.

  16. Guadalupe March 23, 2014 at 2:18 am Reply

    So I have a delinquent bank account from 2007. I think it was an overdraft fee gone horribly wrong, I was young, and didnt take care of it. Now here I am in 2012, and a collection agency calls my girlfriend and tells her it has gained interest and is now an 1800 dollar debt (started as a couple hundred). Anyway I’m already up to my neck in bills and living in the bay area, its very tough out here financially, I simply cannot pay that debt or even take on another monthly payment. They said its a very serious debt and at noon today they will turn it over to another company. They havent threatened wage garnishment or anything but I guess my question is: Is this really that serious, are these just scare tactics, and if not, why all this all of a sudden? Any questions/answers/comments are much appreciated!

  17. Issac April 12, 2014 at 4:43 pm Reply

    I have several charged-off bills from creditors that went to collection agencies. Some credit cards and some non credit cards like cell phone and utilities. I made these mistakes when I was younger so please no negative feedback. Now that I’m getting back on track I want to pay them all off but they show up on my credit report as closed accounts. I don’t quite understand. I read about pay for deletion but I need to know clearly:

    1.how does it work?
    2.does it hurt my credit?
    3.do I pay in full amount owed to agency, pay for a fee, or settle for a lesser amount?
    4.what do I write in the letter to request for pay for deletion? (example please)

    Is the pay for deletion even an option? I’m so confused. I don’t want to get screwed over and pay more than I need to. Would I be better off if I try to negotiate a payoff amount and have them make my account say paid in full? I know I can try to pay off to the creditor but I’m sure that they will tell me that I no longer have an account with them and that it went to the collection agency. Please try to answer all my questions and tell me step by step on how to resolve this if you can. Thanks!
    Thanks CatDad for the response. So what your saying is there’s no point in paying off my old credit cards. I should just let it delete itself in 7 years? and my non credit cards i can have them removed off my credit report if i negotiate with them? how does that affect my credit report? does it make it look like i never had the bill in the first place? and does it make my credit report look better? or will it still be a negative?

  18. Terrance April 17, 2014 at 7:01 am Reply

    I need to pay my debt, and I was wondering if most agencies are often open on the weekends.
    It’s a small credit card debt that went into default. I called the original card company, and they directed me to the collection agency that had my debt. I am going into the military, and for my security clearance, I need to have my debt payed off. I am not responding to a debt collector calling me, I am contacting them first. I also did not give them any of my extremely personal info such as soc., where i work, etc.

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