Will a Debt Collector Come After Me?

[David A. Szwak]

Will a debt collector come after me?
By Steve Bucci • Bankrate.com
http://www.bankrate.com/brm/news/debt/2 ... dtype=pfin

Dear Debt Adviser,
How do you find out if a collection agency is after you?
-- Cary


Dear Cary,
Make sure your phone is plugged in, that you are currently receiving mail and take a quick peek over your shoulder! Collectors rarely have a problem of going unnoticed. Seriously, it sounds as if you are concerned that you have not received notification for some balance you believe you still owe.
The quickest way that I know of to determine whether you have any accounts that have been placed for collection is to check your credit report. You can be sure that any creditor to whom you owe money will have reported that fact to the credit bureaus.

Get reports from all three bureaus and review them for any negative information. Any accounts that are currently in collection will be identified as such on your report as will those that may be late and heading for the collector. The company name, account number, date account opened and status of the account will be listed.

As complete as these reports have become over the years, there are still accounts you may owe that are not reflected. As examples, some utilities and hospitals do not report data to credit bureaus. Certainly, debts owed to individuals or small businesses may not show up either.

In the end, you'll face the same situation whether the debt is listed or not, or in collection or not: If you owe it, they're going to ask you to pay it! It has been my experience that just like the Royal Canadian Mounted Police, collectors always get their man or woman. Eventually you will be tracked down and will have to face the fact that money is owed.

My suggestion is for you to be proactive and to contact your creditor to either dispute the balance or work out an arrangement to pay. The longer you wait, the more interest and fees will accrue, adding to the balances owed. Do your homework before you make contact and have a payoff plan you can afford ready to offer. You should also learn your rights under the Fair Debt Collection Practices Act.

Realize that the people to whom you owe money may not be willing to wait as long as you may think they should for their money. In that event, below are some suggestions of how you might acquire the money necessary to satisfy those immediate demands.

Some suggestions include:

Secure a part-time job.
Sell something of value.
Cut back on expenses such as eating out and entertainment.
Borrow the money from someone else to make the payment. (This is commonly referred to as robbing Peter to pay Paul.)
Read Bankrate's Frugal U channel for more money-saving ideas.

Don't run from any debts that may be yours. It is better to face the consequences of your past actions sooner rather than later.

Good luck!

The Debt Adviser, Steve Bucci, is the president of Consumer Credit Counseling Service of Southern New England. Visit CCCS for additional debt advice or click here to ask a debt question.