The Truth of Credit

There is no doubt in these tough economic times that the collection industry will use all the technology at their disposal to help churn out the dollars. Everything from automated messages to computerized dialing they will start to “bring it” early and often. For the consumer this is nothing new, but the frequency is going to pick up. Basically, it is going to come down to supply and demand. There are just more delinquent accounts then there used to be. So much so that agencies can not hire collectors fast enough. But there is a benefit to all this and one you should be aware of.

With more and more accounts falling behind many companies are starting to accept partial payment arrangements and settlements that are ridiculously low. I have heard some Bank of America accounts settling for 15% on balance owed (but you didn’t hear that from me).

The TRUTH is that even though these are tough times, you are still in control of your money. Remember to prioritize your debt: family, house, utilities, then credit cards. It’s the collectors job to make his debt the most important thing to you but you ultimately know what needs to be paid first, or you should.

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