Brennan & Clark Collection Agency – How Debt Collectors Work
If you have been contacted by a debt collection agency such as the Brennan & Clark collection agency then it is absolutely essential that you take this seriously and make contact with them regarding your debts. Being in debt that you are unable to afford presents a very challenging situation for you and whilst it may not seem like it, a debt collection agency is very much there to help you. In order to understand this it is first important to understand what a debt collection agency is all about, once you have done that, you will see exactly why this is a silver lining to your dark cloud of debt.
Table of Contents
How They Get The Debt
The first place to start here is to understand how debt collection agencies get the debt in the first place. They are able to obtain this debt through the purchase of it for a lower price than the debt itself. Let’s say for example that you owe the bank $10,000 and you have stopped paying your monthly payments. The bank will make an effort to contact you and to remedy this situation, but more often than not there is no reply from the debtor, despite multiple calls. This debt will then be obtained by a debt collection company, for perhaps $7,000. Now whilst the bank have lost $3,000 here, they will have saved money on time on chasing up a debtor who won’t pay, and they have spent no money on wages for a debt collection team to chase you up. The debt collection firm gets a low cost debt and then they take matters into their own hands.
The Myth Around Debt Collectors
It is true that if you have an unpaid finance agreement on either a car, a property or items in the home, that you could have those items taken away from you if you do not pay. The notion however that a debt collection company will boot the door in and take the value of the debt in possessions however, this is not the case, they are not loan sharks. Whilst this is certainly an option which a debt collection agency has in front of them, they will always try every other way possible to remedy the issue before taking such measures.
Passing the Saving
What debt collectors will do is look to pass on the saving that they have made to you. And so to give the example above, let’s assume that the agency has paid $7,000 for that debt, they may be able to offer you a lump sum payment of $8,000 to clear it, or perhaps even shave a thousand off the original debt and bring it down to $9,000 through monthly payments. Because the debt term with the bank has been canceled, the collection company will be able to help you to reach a more realistic figure hat you are going to be able to afford to pay back each month.
Make sure that you answer that call when it comes.