When debt collectors become involved, things can get very stressful, very fast. If you have recently received any form of contact from a debt collector, you could be feeling uneasy. Constant calls from creditors can make you feel harassed and defaults being applied to your credit file can have a damaging impact on your life. If you are dealing with debt collectors, don’t worry too much. This ultimate guide can help you out.
There are many circumstances that are simply out of your control when it comes to missing repayments. Things happen, so you first must remember that this isn’t the end of the world. If you are willing to work it out, there is no reason to panic. Debt collectors can be ruthless at times and the harassment and stress that comes along with them can make your situation even worse.
Dealing with debt collectors
Dealing with overdue debt can be very overwhelming and dealing with debt collectors even more so. However, with the right support and by taking the correct steps, it can ease the stress significantly. So, if you find yourself in debt and being contacted by debt collectors, don’t worry.
What is a debt collector?
A debt collector is a person/agency that will contact you in the event that you have overdue debt. Dealing with debt collectors can be a challenging task for anyone, no matter what position they’re in. Debt collectors will usually call you repeatedly until you pick up to:
- Demand payment for your debt
- Inspect/recover mortgaged goods
- Make an arrangement for repayments
- Review a repayment plan
- Find out why your repayment plan hasn’t been met
What are debt collectors not allowed to do?
The first step to dealing with debt collectors is to know what they are not allowed to do. This way, you will be able to identify any unlawful or unfair behaviour from the debt collectors contacting you. Debt collectors are not allowed to:
- Use any form of force or physical coercion
- Harass you to an unreasonable point
- Harass you until you are distressed to a bad extent
- Provide you with any misleading information
- Make false statements
- Deceive you in any way, shape, or form
- Trespass on your property
- Threaten you
- Intimidate you
- Verbally abuse you
- Take unfair advantage of you with any kind of vulnerability or disability
What happens if I ignore debt collectors?
While you may be tempted to ignore debt collectors when they are hassling you, this is definitely not in your best interest. Ignoring your debts can lead to very severe consequences. You may hope to be left alone, but it will likely lead to the exact opposite. Consequences you may face can include:
- A debt collector may file a lawsuit against you if you ignore their calls and letters
- A debt collector will continue to call and contact you, perhaps even more than before
- Your debt will grow
- You will have missed the opportunity to settle your debt
- Your credit score will likely see a negative impact
It is always a good idea to focus on and handle your debt head-on. Ignoring it will only get you into further trouble. Sort it out while you can, otherwise, you may be facing far more trouble than before.
What is the best way for dealing with debt collectors?
We all know by now that dealing with debt collectors can be stressful, but that can be stopped when you face it straight up. Be honest about why you have gone into debt, you will likely be treated better if you are upfront. This way, the process will be far easier than you ever thought it could be. If a debt collector tries to get in contact with you, you should:
- Respond to them as soon as possible
- Be cooperative with the debt collector and be respectful
- Be honest about your debt and your financial situation
These things alone can help you far more than you think. With these simple steps, dealing with debt collectors will be far less stressful.
Getting help with debt
If you begin to feel overwhelmed or panicked at any time, it is a good idea to get in contact with a professional who can help you. Just Budget have a team full of experience and expertise. We have helped thousands of Australians in debt and we could help you too. If dealing with creditors is too stressful or difficult then Just Budget:
- Can prevent creditors from contacting you
- Manage all of your unsecured debts on your behalf
- Combine all of your creditors into 1 repayment
- Significantly reduce your repayments to a figure that you can afford
- Could help to improve your credit score
- Put you back in control of your finances and help to take the stress away.
When you contact Just Budget, you can expect to receive the best care possible. Caring financial support is our motto and we always aim to solve the situation you are in both financially and emotionally. Solving your debt starts with you, reach out today.
