Do you have the tendency of throwing your main in the bin without even reading it? Used to just taking the bills and getting rid of everything else, you could easily miss an important announcement.
The same goes for if you’ve switched to digital as much as possible. You could wind up not reading some important documents by ignoring the mail you get in the post. So, be careful what you throw out.
Whether you receive it digitally or in physical mail, a debt collection claim certainly requires your attention. Sure, it will frustrate you and you will get annoyed, but simply throwing the letter into the bin won’t do the trick.
In fact, it will only make matters worse. Do you really want to risk making matters worse, or do you want to keep things in your control and actually do something about it?
I guess I know the answer to that question. What you want to do is stoppe inkasso, that is, stop the debt collection claim, and thus regain control over your finances and not risk losing a lot. The only question, though, is how you can do that.
It is not unusual for people to be confused about this, and if you’re confused about it as well, then it simply means that you haven’t had to deal with such problems in the past, which is a good thing.
Assuming that you can’t do anything about this and that you have to make peace with the fact that more and more reminders and notices will come your way is wrong. This kind of a mindset will only lead to you incurring more debt and then having to pay more expensive fees. That’s what happens if you ignore the claim.
If, however, you take a more proactive approach and actually do something about it, you can easily stop debt collection, and thus make your financial situation better. As explained, though, you may not know what to do about it, since you’ve never dealt with similar things in the past, so that is the topic that we will cover below.
By reading on, you will, hopefully, understand what you can do and then take the right action towards resolving the problem you are facing.
How to Stop Debt Collection?
All is not lost when you receive the debt collection claim. A scary document to receive, that is for sure, but you shouldn’t panic. There are still good solutions you can use to your advantage.
Solutions that will get you out of the financial pickle you’ve put yourself into and that will put you on the right track towards getting out of the actual debt and generally improving your overall financial situation.
If you’re dealing with credit card debt, here are some tips that could help you get rid of it on time: https://edition.cnn.com/cnn-underscored/money/how-to-pay-off-credit-card-debt
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Pay the Claim
Here is the most obvious solution you will have here. Pay the claim. Of course, don’t rush into anything here, because panic can lead to paying something you shouldn’t be paying. So, the first thing to do is check if the claim is legitimate and what it refers to specifically.
If it is legit and the amount is not significantly high, that is, if you can afford to pay it, that is the easiest way to resolve this problem.
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Set Up a Repayment Plan
Sometimes, though, you may not be able to afford paying the entire debt collection bill at once. This is the situation that will get you to panic, especially if you assume that you have to come up with the money right away and you don’t know how. The good news, though, is that there is a different solution, consisting of cooperating specifically with the debt collection agency.
In case you could not have guessed it, I am referring to the idea of setting up a repayment plan together with the agency. Keep your budget in mind and know exactly how much you will be able to pay per month, so that you can create the perfect plan.
Remember, though, that these plans will come with interest, meaning that you should be aware of those and know exactly what the rate is, as that will further help you make the best plan, as well as check if doing that is right for you in the first place.
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Refinance
If you’re unhappy with the repayment plan, and you’re also not capable of paying everything at once, you will be glad to hear that there is a third solution. In few words, you can get a loan to pay the claim, which is known as a refinancing solution.
Just like the repayment plan, the refi solution will come with certain interest rates, and it is your responsibility to compare those two, aiming at figuring out which option is more favorable financially.
The good thing is that the interest rates on the refi solution will be lower than those that would be associated with not paying the claim at all.
So, even if the agency doesn’t want to offer a repayment plan, or if their plan is not exactly favorable, you can always count on the refinancing option to get you out of the unpleasant situation and thus boost your overall financial circumstances.
This is the solution that people often use to solve their debt problems. And, another great thing about it is that you can include numerous claims in the refinancing loan, and thus consolidate all of your debt into just one loan. Click this to learn a bit more about this particular option.
Putting all of your debt under this one umbrella, so to speak, will also help you avoid getting any future debt collection claims. Thus, refinancing can play the role of getting you out of the pickle once you get the claim, but it can also play the protective role and thus help you avoid getting any claims in the first place.
Not to mention that it can offer great relief, given that you won’t have to worry about your finances that much when you refinance and repay all the debt.
How to Get the Right Refinancing Solution?
If you’ve decided to go for the refi solution, then you will want to find the right one for you. Understanding that there are different offers on the market, you’ll want to be careful, instead of reckless, in the choosing process.
Those different offers, naturally, come from different lenders, meaning that your main task is to focus on choosing the perfect lenders to provide you with the refinancing loan that you want to get.
In order to determine if the lenders are right and if their offers are reasonable, you will need to take a couple of significant factors into consideration. Starting with the interest rates, of course. You want those to be completely reasonable and not too high.
Then, there are also other borrowing terms to consider, including any kinds of fees that the lender may decide to charge.
On top of it all, you should check the reputation of the lenders, so as to be sure you’re working with reliable instead of shady ones. Once you’ve checked all the factors, you’ll be ready to apply and get the perfect refi solution to deal with your debt collection claim.
