Contact the original creditors. If at all possible, it’s always best to work with the original creditor. Creditors are usually more apt to listen to why you got behind in the first place. They are also more willing to cut interest from your collection bills. The most important advantage to working with the original creditor is that they’re a company you can trust.
Check the Better Business Bureau website for information on the collection agencies. If the original creditor is unable to work with you, don’t simply pay off your collection bills without doing your homework. Some agencies are not only corrupt, but have been involved in several lawsuits. By doing a quick search on the Better Business Bureau website, you’ll be able to determine what your next action should be.
Understand collection laws. Corrupt agencies don’t play by the rules. This means that they will send letters and make phone calls with the intent of intimidating you. They may make false claims about judgments or even make up fees to charge to your account. Do not fall for these schemes. Take time to understand the law and your rights as a debtor.
Negotiate a payment plan. If the agencies seem to be legitimate, you can them proceed to pay off your collection bills. It may be impossible to pay off the entire amount at once. That’s why it’s important to talk to the agencies about setting up payment plans. For the most part, agencies will be willing to work with you, but you may have to pay more fees.
Make sure you get receipts for your payments. It doesn’t matter if the agencies you work with are legitimate or not. You must get receipts. These receipts will prove that you made payments and paid off your collection bills. Without these receipts, agencies could resell your debt and you’d have no proof that the debt had been paid.