If you look through FAQs and online information about debt and collections, a common question is “can collection agency sue for a debt?” The answer is yes. Not only can collection agency sue for a debt, but they most definitely will because the bottom line is they want the money. There are a variety of ways you can avoid being sued by a collection agency however.
First of all, the minute you get the information from the agency that you need to pay a debt with them, verify the debt to make sure it’s yours. Mistakes do happen, and these companies buy debts in bulk for pennies on the dollar. Some are less than reputable and have no problem trying to collect a debt whether it’s a mistake or not. So make sure you owe the money by finding the original creditor and looking at the balances for any discrepancies. (more…)
Debt settlement and debt consolidation both offer ways of reducing your debt. Debt settlement eliminates part of your loans, while debt consolidation reduces interest rates. Even though debt consolidation has the least impact on your credit score, there are cases when debt settlement is a better option.
The word credit has undergone a subtle change of meaning. It used to be a means for businessmen to raise funds for expansion or a new venture, and was a word with very limited use outside the business world. Nowadays credit is more often taken to mean the opportunities for individuals to spend more than they earn and to live beyond their means, with a concomitant increase in the numbers declaring bankruptcy.
