If you are in debt and you have missed your payments multiple times then it is likely that you are going to start getting calls from debt collection agencies. When a company like this calls you it is absolutely essential that you answer them and that you make contact with the agency, because the reality is that they are trying to help you to pay off the money that you owe. We have been asked about debt collection agencies here and today we are going to dive into how the process works, because there are some myths around this type of business.

To help out we caught up with some of the team from the Brennan & Clark collection agency, to find out the details of exactly how these companies work.

Buying The Debt

There are two types of businesses which operate in this field, some are debt collection agencies which are tied to lenders, and most will act independently. Looking at the latter example, these businesses will purchase bad debt from the original lender, such as a bank. What the debt collection agencies will do is to offer a much lower amount than the debt is, in order to secure something of a bargain. Now the lender, or bank in this instance, will be happy to sell that debt at a discount because that way it is off their hands, and they may well have already had the full loan amount paid back when taking interest into consideration.

Chasing Up The Debtor

Unlike the bank or lender, the debt collection agency is set up very well to chase up the people who owe money. What so many fail to realize is that when the debt collection agency is trying to help you when they call you up. There is a myth that they are going to come and pound on your door and threaten you or some other such nonsense, the reality is that they want to help you get to the bottom of the debt, they want it paid off as much as you do.

Passing on the Saving

The low cost which the debt collection agency bagged your debt for is something which they will then try and use to help you. This means that they can offer you the chance to get the debt paid off for a far lower sum than the original amount, passing some of the saving on to you. They will also be able to talk through your financial situation and offer you a smart repayment program which you can afford. Ultimately there is an absolute wealth of options for you here which and the point is that you must make contact when they try to communicate with you.

Simply put this type of company offers a win-win for everyone around, they allow the banks or the original lender to recoup some of their money, they allow the debtor to have an easier time paying off the debt and of course, they make money too, everyone’s a winner.