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Why You Should Never Let Debt go to Collections

If you are unable to repay your debt, then you may think the best thing to do is simply ignore it until it goes to collections. However, your debt wonق€™t just go away by doing so and you can end up with major problems if you stonewall your collectors. The truth that many people donق€™t realize is that allowing your debt to go to collections and proceeding to ignoring debt collectors wonق€™t ever make the debt go away, and the process of collecting your debt will continue indefinitely if you do nothing. Letق€™s take a look at why you should never let your debt go into collections.

You Wonق€™t Be Left Alone

Debt collectors wonق€™t give up trying to collect a debt from you. Although you may be hoping that eventually collectors will forget about you or not be able to track you down, it usually doesnق€™t happen. Keep in in mind that every single piece of data available on you including your phone records are available to debt collectors. The internet has made it incredibly easy for debt collection investigators to find information out about you with only a few clicks of their mouse, which meansآ it’s very hard to hide from them.

Your Credit Will Suffer

No matter what you do, a debt that goes to collections will show up on your credit report, even if you respond to any attempts to contact you. This major credit ding wonق€™t go away for years, even after paying off the debt once itآ goes into collections. You are much better off talking to a lender before it does so that you have the chance to explain why you are unable to repay the debt and see if you can come to an arrangement.

Your Debt Will Accumulate

Just because your debt gets put into collections doesnق€™t mean that the interest will stop accumulating. Although it depends on the terms of the creditor or lender and the particular state you reside in, having a debt go into collection may even add on additional collection costs and interest. In fact, there has been some cases where debt doubles in collection over time.

The Collection Call Wonق€™t Stop

Once your debt reaches collections, it is up for grabs for any agency that wishes to try collecting the debt from you. This means that if you do not respond to the first collector it will simply be sold off to another one who will attempt to collect the debt from you once again. As long as you do not repay the debt, the calls wonق€™t stop. On top of this, if a collector is unable to find you they are legally allowed to contact third parties, which means your neighbors, relatives, employer, etc. to try to find you. Although they arenق€™t allowed to tell anyone you owe a debt, it can still lead to an embarrassing situation.

You May Be One Step Away from Getting Sued

Once your bill gets placed into collections itق€™s pertinent that it is taken care of, otherwise you may find yourself with a lawsuit on your hands before very long. If you donق€™t communicate with a collector right away, it may leave the collection agency with little choice but to get their lawyers to sue you. Although you have the option to hire a lawyer yourself to defend against a debt collection lawsuit, doing so will be quite expensive. If you end up losing in court, then the judge may allow the collectors to garnish your wages or withdraw money from your bank account.