How to Pay Collection Agency
It is not that easy to deal with collection agency. However, learning how to pay collection agency can help you handle the task easier.
Thus, it does not necessarily mean that dealing with collection agency should be time-consuming and stressful.
How Collection Agency Works?
Deciding to pay a collection agency requires an individual to think it over several times. However, if there is no other choice but to pay a collection agency, the best thing to do is to follow some measures. As you will pay for a collection agency you should document all the monthly expenses before you speak to the collection agency. This will help you to avoid getting pressured to agree in a repayment plan that you cannot afford to maintain. Thus, determining your expenses spares you from making promises that is far to reality. When communicating with the collection agency make sure that everything is recorded and documented. As much as possible you should take note about the time and date of talking to the collection agency and at the same time get the name of the agent. It is also important to document the arrangements for reference purposes in the future.
You should also inquire if you can avail for settlement plan. Try to negotiate with the collection agency if they can reduce the amount owed if you will pay lump sum or three large payments. As much as possible you should take advantage with any settlement programs that would lighten your burden. On the other hand, you will notice that most collection agencies requires you to pay through MoneyGram, Western Union and other payment methods that would add to your expenses. Likewise, other collection agency encourages making automatic payments. However, this option is risky as you might owe overdraft fees in case of miscalculating your finances.
In this sense, you may request to make your payments by using personal checks through mail. This is the best way to avoid additional fees and can help building good record of payment history. It is a due diligence to keep all the correspondence, checks and documents about the collection account. File it in a safe place so that you can easily track your payment. Likewise, the documents can also help in case another collection agency takes your debt in the future. ‘
On the other hand, if you will use personal check for payment you should ensure not to divulge your account information. Never attempt to give the collection agency access over your checking account. Otherwise, you might be surprised if one day your checking account is wiped out. As soon as you completed the payment you should request for zero balance statement. In this way, there would be no possibility that paid debts would reappear. The zero balance statement will prove that you have paid completely the total amount owed.