Preventing collections

Because collection agencies buy such a wide variety of debts, debt collections are common occurrences. Medical collections are especially common because of policies that leave the consumer ultimately responsible for medical bills even if the insurance company was supposed to cover the expense. You should always pay a debt that is in danger of being sold to collections (even using a credit card or if the debt is incorrect) to prevent damage to your credit reports. You can continue your dispute after the debt has been paid. People also commonly end up with collection debts when their bills are sent to an incorrect or old address. Be sure to track your bills closely and file a change of address form with the post office when you move.

Being contacted by a collections agency can be scary and overwhelming. If you take a step back, read your rights, and think about your options, you can take control of the situation. Credit.com is here to help you get your finances back in order.