If you want to avoid collection harassment due to your credit card debt, perhaps you should consider consolidating your credit card debt. Let’s dive into this topic a bit further to see what credit card debt consolidation is all about.
When you take out a credit card you agree to make the payments on the card according to the terms and conditions set by the credit card company. However, if any kind of financial problem arises you may start missing payments on your credit cards. In that case, your creditors can hand over the account to a collection agency.
You can try consolidating credit card debt in order to avoid the collection agency harassment. Credit card debt consolidation helps in lowering the interest rate on your credit card debt. It also minimizes the number of payments you will have to make each month to only one. Thus, it becomes really easier for you to make the payments.
When you try consolidating credit card debt, all of your multiple bills are combined into a single new debt, with a lowered interest rate and lowered monthly payment. You can yourself try consolidating credit card debt by negotiating with your creditors. You can also take help from a debt consolidation company, who will negotiate with your creditors on your behalf.
Consolidating credit card debt helps you to avoid the collection agency harassment. As you consolidate your credit cards, it becomes easier for you to make the payments and so you may not have to miss payments on your cards.
Collection agencies are the persons or companies who work on part of the creditors helping them to get back their dues. The creditors generally sell off a delinquent account to a collection agency when the creditor finds that the debtor is unable to pay their bills on time. If the agency is able to successfully collect the assigned sum, the creditor then pays a certain amount of money to the collection agency.
There are mainly three types of collection agencies depending on the nature of their work, first party collection agency, third party collection agency and debt buyers.
Handling the collection agencies is quite a tough thing as they call and harass you over the phone. However, as said above you can avoid dealing with the collection agencies f you consolidate your credit cards. Other than this, you can also check with the Fair Debt Collections Practices Act or FDCPA rules that require the collection agencies to stick to some requirements. If you find that the collection agency is not abiding by these rules, you can file a complaint with the FDCPA.