Got a call from a debt collector? Read this!

No one likes trouble and having debt is certainly one of the biggest problems you will face.

Numerous people all over the world are facing serious debt issues. They either forget to pay
their debts on time due to this fast-paced life, or you don’t have enough money to pay off the debt.

But this delay in payment has consequences. The creditor can hire an international collection
firm like Cedar Financial Business to collect the pending debt. The collector will contact you
and convince you to pay the debt by following rules laid for a debtor’s safety. But they can
update your credit report with a collection which means your credit score will decrease.

Below, we will learn who collectors are and how to deal with them.

Who are debt collectors?

Debt collectors are third party collection agencies that collect pending debts on behalf of the
original lender.

They collect all types of debt like medical debt, credit card debt, loans, student loans, business
debts, and so on. Some firms collect a specific debt, while others collect all types of debt. A
debt collector works for commission, and after they collect the debt, they get a 25%-45% cut
from the whole recovered account.

Why do debt collectors call you?

Sometimes intentionally or unintentionally, we forget to pay our debts or some utility bills or so
on. When the number of missing payments keeps increasing, the creditor hires a debt collector
to collect the debt. The reason a collector is hired is that the debtor has:

• Not paying his/her credit card bills
• Has pending installments for medical or student loan
• Mortgage or so on.

How a collector reaches you?

• The original creditor provides the collector with your contact information. A collector uses that

information to call you and send you letters.

• If they are unable to contact you through this, they contact your office or your friends and family. If still unable to track you, they use various databases and computer programs

to track you.

• Once they make contact with you, they give you five days to verify the debt if you want.
• You can send a written letter asking to validate the debt, they hold the entire proceedings 

for these five days. 

How to pay the debt?

You have two options when it comes to paying off the debt. First, you can pay the whole amount
in lump-sum through cash or cheque. But if the debt amount is too big and you don’t have enough
money, you can let the collectors know.

A reputable collection firm like Cedar financial will help you make the payment in installments.

What will happen if you don’t pay off the debt?

Well, having a pending debt is never good for your financial status. A collector can update your
credit report with a collection, which will decrease your credit score. It means that in future you
will face issues when it comes to getting a loan approved, as lenders will see you as a risky debtor.
You can also get entangled in a lawsuit, and if you lose it, your assets are taken over.

I hope you have gained much knowledge about debt collectors through this and will work with them
to pay-off your debt easily.