Why You Should Never Pay a Collection Agency?
Once your debt lands with a collections agency, things get messy. Since collection agencies purchase debt, they seek to obtain a return on their investment. They offer deals to individuals on their lists since the agencies don’t need to collect the entire amount.
The question many individuals have is should they pay a collection agency? Some professionals in the industry advise the public to skip it. Paying the debt once it’s in the hands of an agency does not improve credit scores. The negative mark remains on the report. Plus, paying the agency can keep it on the report an extra year. Those who can evade agencies until the debt falls off the record keep their money and their score improves. However, it gets tricky with agencies that have aggressive practices.
Some agencies will file lawsuits against individuals. Once you receive the summons to appear in court, you find yourself pulled into a legal battle. They can obtain an order to garnish your wages. Some agencies also decide to call the people on their lists frequently. Thus, causing stress.
Practicing solid personal finance skills keeps the collections agencies away, especially with credit card and car loan products.
Should You Pay a Collection Agency Conclusion
Whether or not you pay a collection agency becomes a personal decision. The list of pros and cons is heavy on both sides. If you find yourself repairing your credit, you can still become a homeowner. You can apply for the Mortgage House bad credit home loan. Contact our loan specialists to obtain more information.