Dealing with Debt Collectors

If you are one of the many people in South Africa being dunned for delinquent credit card, hospital, or other bills then you are not alone. Getting behind on bills and owing past due money is a terrible position to be in, but the good news is that even if you owe money to a creditor, you still have rights, and debt collectors should never scare you.

It is easy to feel intimidated by collection agencies or credit providers, which could make you confused about the repayment process. But rather than panicking and avoiding your collector’s many calls – and there will be a lot of those – it is crucial to know how to handle debt collectors so you can assert your rights and choose the best way to manage your debt.

Before you say anything or make any payments:

– Think before you act, to avoid making the situation worse.
– Gather the facts first (If the debt sounds unfamiliar, it might not be yours – so make sure it is yours);
– Know your rights;
– Plan how you’ll deal with the debt.

Know how Debt Collectors Operate:

It is important to know how most debt collectors operate. While some may be difficult right from the start and demand you pay what you owe, while other debt collectors may start out by acting relatively friendly on the phone but if consumers don’t agree to pay immediately, they will turn up the pressure next time they phone.

Most debt collectors are paid according to the number of collection call they place or number of demand letters they send out, which is another method that offers them a financial incentive is being pushy and persistent.

However, other debt collector’s don’t work for creditors at all, but they buy creditor’s old debt, often at a discount. Then the debt collectors try to make a profit by collecting as much debt as possible.

The longer a debt goes unpaid, it is more likely that it will be paid, therefore they will try collect as soon as possible. This helps the debt collectors to create a false sense of urgency when they talk to you.

So the next time they call you, make sure you have all your ducks in a row before agreeing to pay for anything, and that you are not a victim of reckless lending.