Credit Problems - Why Debt Collectors Are Not the Answer

It is my belief that if you have multiple debts problems then speaking to debt collection agents is not the answer to your problems. Some people will no doubt think that this advice is incorrect or irresponsible so I will explain why I say it.

If you have reached a debt crisis situation you need a debt solution that:

1. Pays your creditors what you can afford AFTER paying all your essential bills such as mortgage/rent/food etc.

2. Allocates the money that you have available fairly between all of you unsecured creditors.

Most agents working in collection do not care about the above points. The sole objective is to persuade (and that's a polite term) you to part with as much money as possible. It is often no concern to them if you or your family go hungry because you've paid money to your creditors. They will also not care if you miss or reduce your mortgage payment for the same reason, pushing you down the road to re-possession/foreclosure.

It would not be fair to suggest that debt collection agents should be considering your other debts, if you have multiple debts they are in competition for your limited money with other commercial lenders. However their desire to increase the share that their company is getting will often create a lot of pointless (from the debtors point of view) pressure.

The best idea is to get independent advice on your debt situation from someone that can also represent you to your creditors. If you don't want to do this then you can come to an informal arrangement with your creditors by preparing your monthly budget, and allocating the excess income fairly between your creditors. Update all of your creditors every few months or sooner if there are any significant changes and you will be fulfilling all of your obligations to your creditors without ever needing to speak to possibly threatening debt collection agents.