Neon Funding has joined Cobalt Advisors and Apply Credit 9 and Saxton Associates in flooding the market with debt consolidation and personal loan offers in the mail. The problem is that the terms and conditions are at the very least confusing, and possibly even suspect. The interest rates are so low that you would have to have near-perfect credit to be approved for one of their offers. Best 2020 Reviews, the personal finance review site, has been following Neon Funding, Cobalt Advisors, Saxton Associates, Hornet Partners, Piper Funding, Carina Advisors, Corey Advisors, Pennon Partners, Jayhawk Advisors, Clay Advisors, Colony Associates, and Pine Advisors, etc.).
Most debtors will have to deal with debt collectors from time to time. These individuals could be a minor nuisance or a major problem depending on the collection agency that sent them. Some debt collectors are lawyers, while others may be employees sent by your creditors.
You will be contacted by one of these individuals or agencies whenever your debt payments are due. Dealing with debt collectors can be difficult because their only goal is to get you to pay up. They are skilled at reaching out to you wherever you may be, and pressuring you into paying your debts as soon as possible. They won’t help you erase your debt.
However, you may be able to avoid dealing with debt collection agencies with the help of debt relief options.
Why you should use debt relief to avoid debt collection
If collectors are hounding you to pay up, you can refuse to pay or explain that you’re unable to make payments at the moment. But this inevitably leads to your creditors using a collection agency to get you to pay up. Collection agencies are much harder to avoid and are known to hound debtors endlessly.
Their scare tactics may be more frightening than your creditor’s earlier collectors, and you may be forced to turn to extreme measures to pay back your debt. However, you could ease your debt collection woes and get your finances back in order with the help of a debt relief program.
Let’s look at the various options that could help your situation.
1. Confronting the problem
Debtors should avoid ignoring their debt collectors when they contact them. It is tempting to ignore their phone calls in the hopes it could buy you more time; however, your debt collection worries aren’t going to be resolved if you keep running away from the problem.
You should hear out your debt collectors and get a solid understanding of how much money you owe them. Once you understand the full extent of your debt, you can work towards fixing it.
It will then be easier to look over your finances and select the debt relief option that reduces the urgency of your debt collection.
2. When debt collection goes too far
Some people may be contacted by debt collection agencies under false pretenses. However, there are legal protections in place to prevent debt collectors from fraudulently extracting payments from others. If you feel a debt collector is asking you to pay for a debt you don’t owe, you can send them a letter informing them that they are mistaken.
You can also ask them to provide a bill for any outstanding debts you owe. If their claims are legitimate, you should try your best to pay off the debt as soon as possible or seek debt relief options. If you have already paid off the debt, you can send them proof of your payment.
3. Understand your rights
The Fair Debt Collection Practices Act (FDCPA) prevents debt collection agencies and debt collectors from intimidating debtors with arrest threats or other using unethical tactics. These collectors also aren’t allowed to take your pay or liquidate your assets without legal approval.
If you feel your debt collector has engaged in any of the aforementioned practices, you should contact your state’s Attorney General’s office. These officials will teach you about your rights within the state. This information can help you determine if collectors are violating any laws with their collection tactics.
You also have the option of contacting the Federal Trade Commision directly and filing a complaint against your debt collector.
4. Consider debt relief options
If you’re faced with debt collection and are having difficulty paying back your loans, you should seek out debt relief options. Many companies offer consolidation loans to debtors who are struggling with multiple debts.
These loans are typically offered at lower interest rates than the debts they are being used to pay off, so they are easier to pay paid in the long-run. You will also have less debt collectors chasing you down as you will be responsible for only one loan payment per month.
However, consolidation loans are typically offered with long payback term lengths. The interest rate on these loans may be low, but you could end up paying more interest in total because of the loan’s longer term length. This debt relief option can help with your debt collection worries and make your finances more manageable.
5. Get help from a credit counselor
A credit counselor may be able to provide you with other debt relief options. One of these options includes debt settlement. Debt settlement is an interesting way to get out of credit card debt.
If you choose to take the debt settlement route, your credit counselor or settlement service company will negotiate with your creditors and attempt to pay off a portion of your existing debt. In this method, you will need to start placing funds into a bank account at regular intervals.
As the funds in this account grow, your settlement service company will continue to negotiate the settlement until an agreement is reached. The funds in your account then be transferred to your creditor and your debt will be forgiven.
You won’t have to worry about debt collection if this works out in your favor, however some creditors may take legal action if you stop payments during the negotiation period.
Which debt relief method is best for me?
There’s no easy way to tell what the best debt relief method is. But the best plan is usually the one that you’re able to stick with for a long time. If you fail while trying one of these methods, you may end up in worse debt than before. You will once again have debt collection agencies hounding you down.
So consider discussing your debt relief options with a professional credit counsellor. They may be able to provide the right guidance given your unique situation.