(Mass Appeal) – In this Finance 101 segment, we are talking about how to handle debt collectors and get back on track paying off all your debt. We welcomed Todd from Cambridge Credit in Agawam with tips.
First, remember that the collectors are buying the right to sue you and that an account in collections can make it hard to get approved for new credit and loans. the First thing you should to is validate your debt and request that validation in certified mail.
Next, create a budget and prioritize your debt. Finally, aim for one of three outcomes. Ideal, which is paid in full, the sometimes possible scenario of settled and removed from your credit report or the least desirable outcome, which is settled and reported as settled or paid less than full balance.