Being subjected to debt collection is no fun. Answering the phone and opening the mail scare you. You are nervous about strangers lurking around your workplace. The fear of having to face debt collectors makes it impossible for you to enjoy life. It might even stress you out and make you physically ill.
Unfortunately, debt collection is part of the modern culture. Organizations like Salt Lake City’s Judgment Collectors work on behalf of creditors who have been unsuccessful in collecting outstanding debts. These firms exist because the need is real. If the need didn’t exist, neither would they.
Perhaps you’ve had experience with debt collection and you don’t want to repeat it. On the other hand, maybe you haven’t experienced it and you want to keep it that way. In either case, below are four tips that you can implement. They will virtually guarantee that debt collectors stay away from you.
1. Pay Your Bills
The first tip is to simply pay your bills. This may sound like an oversimplification of a complex matter, but it’s not. There is nothing complex about acquiring debt and not paying it. It is pretty straightforward. If you buy something, pay for it. If you don’t have the money to pay for it, don’t buy it.
Unfortunately, far too many people live on credit. They do not know how to manage money. They do not budget or attempt to learn how. They simply buy what they want whenever the urge strikes. This is a recipe for financial trouble. It is an open invitation to debt collection. But pay your bills on time and you’ll have no worries.
2. Don’t Ignore Creditors
So, you agree that paying your bills is the best way to avoid future credit collection efforts. But what about now? Start by not ignoring your creditors. If they are reaching out to you in an attempt to avoid going to collection, work with them.
Despite what you might believe, creditors do not want to send bills to collection. It costs them too much money. They would rather work out payment plans. If you continue to ignore them though, they may have no other choice but to send the debt to a collection agency.
3. Answer Civil Service
If you are served with notice of civil litigation, answer it. Show up in court and plead your case. You might win; you might lose. But you’ll definitely have a judgment entered against you if you don’t show up at all. By showing up, you will be demonstrating to the creditor that you are willing to work things out. Should you lose the case, be cooperative with the creditor in setting up a means of payment. Otherwise, you will have a judgment collection agency on your tail in short order.
4. Get Rid of Your Credit Cards
Much of today’s outstanding consumer debt is the result of credit card spending. You can do yourself a big favor by getting rid of your credit cards. You don’t need them. Credit cards are just an excuse to spend money you don’t have. If you do not have the credit cards, you cannot spend that money. Then you won’t get into debt that will force credit card companies to send you to collection.
Most types of debt collection are completely avoidable. Just by employing sound financial practices and a little bit of discipline, you can actually live within your means so that none of your bills go unpaid. In the end, that’s the real secret to avoiding debt collection. Do not spend more than you earn, and you will avoid trouble.
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