Wednesday, December 8, 2010

What Happens If A Debtor Has To Deal With More Than One Collection Agency For The Same Debt?

Getting trapped in the dirty vicious cycle of debt and its equally painful consequences has become the part and parcel of every American’s financial reality. In many cases even the most efficient debt relief companies fail to provide a perfect debt solution to the debtor to whom none of the options like debt settlement, debt consolidation or credit counseling prove helpful. In such conditions, when all the major debt repayment plans decline, the debtors have to solely deal with the creditors or the collection agencies at his own risk applying his individual skills and knowledge in negotiating with the creditors and debt collectors. The process of debt collection is always associated with fears, harassments and financial insecurities. However, one has to be aware of few facts and information regarding original creditors, collection agencies and junk debt buyers who are also known as the secondary debt collectors.

As a matter of fact, when your original creditors realize it too expensive and time consuming to extract debt from you due to your financial deterioration, they think it rather profitable to sell your debt to a collection agency at a comparatively lower cost. Now this time the debtor faces challenges of confronting a debt collection agency and its extraction methods. Thus if you are contacted by more than one collection agency for the same debt, it implies that the original creditor has given up on you and have hired a secondary or even a tertiary collection agency. In many cases when even the first collection agency sells off your debt to a new or a second agency, it indicates that the second collection agency has paid even lesser than the price with which the first collection agency has bought your debts. Thus it is time for the debtor to use some brain and contemplate easier ways to settle his debts and reduce the payments in case the debts have travelled down from the original creditor and the first collection agency to the second or third one, in which case the debtor may find himself at the receiving end than the debt collectors.

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