7 Reasons To Answer That Call From Collections | Refresh Financial
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7 Reasons To Answer That Call From Collections

 7 Reasons To Answer That Call From Collections

If you have a debt that's gone to collections, it can be a stressful experience. You get threatening letters so often that just checking your mail gives you anxiety. You avoid answering phone calls from numbers you don't recognize because you know it could be someone asking you to pay your debts. Although it can be one of the most anxiety-inducing experiences, I'm here to tell you that it doesn't have to be. It's better to face your fears head-on instead of ignoring them. For today's blog, we're going to discuss 7 reasons to answer that call from collections. 

1. You Could Be Accumulating Interest

- Debt that has fallen into collections can still build interest and could be growing even as you read this. The sooner you answer that call and work out a payment arrangement, the less you will end up owing.

2. Your Credit Score Will Continue To Suffer

- Debts that get sent to collections will hurt your credit score. We all know the consequences of poor credit. You'll have a hard time being approved for loans or financing options, potential employers may decide not to hire you, and you could even be denied for rentals.

3. Collections Appear On Your Credit Report

- Accounts that have gone to collections are visible to anyone pulling your credit.

4. You Will Denied Credit Products

- As long as you have a collections statement on your credit report, lenders will almost always turn down your application for new credit. If you aren't declined outright, your interest rates will be astronomical.

5. Never-Ending Harassment

- Talking to your collection agency and working out a payment plan will ensure that the harassing phone calls and letters will cease, allowing you to have some peace of mind again.

6. You Won't Be Afraid To Answer Rogue Phone Numbers

- Once you've committed to a payment plan for your outstanding debt, rogue numbers will no longer belong to angry collections agents. You might still have to deal with solicitation or wrong numbers, but at least unrecognized numbers won't belong to collections agents hounding you for money.

7. It's The First Step Towards Better Credit

- By simply answering that call from collections and working out a repayment plan, you're taking your first real step towards better credit. If you stick with it, it’ll only be a matter of time until you're in the clear.

If you've had accounts sent to collections and you're struggling to recover from the hits against your credit score, consider a secured savings loan. These loans don't require any money upfront. It doesn't matter where your credit score is to be approved, and the best part is that they report to the credit bureau like a traditional loan. It's the fastest and cheapest way to build your credit score. For more information, click here.

In short, it's always better to answer the call from collections. It's better for your state of mind, your finances and your credit score!

Have you ever had to deal with collections? Tell us what that was like in the comments!

 

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