Collection Agencies 101: The down-low

"Collectors are your enemies!"

"Collectors will sue you at the drop of the hat!"

"Collectors will call you in the middle of the night and threaten to burn your house down if you don't pay them!"

These are things people say about collection agencies, in addition to a slew of other commentaries. Some of the things you here are true. Some of the things you hear are based on bias and bad experiences, but are not altogether accurate.

There are multiple audiences that this blog is intended to speak to.

If you've managed to stay out of debt so far, this article is more of a cautionary tale for you. Learn from it. Avoid the pitfalls of others gone before you.

If you've taken a ride on the debt roller coaster, then most of the sentiments mentioned here will ring all too true to you.

I've opted to share my personal experience in this article. It isn't easy for me to do, but I need to do it. I hope you're able to glean some wisdom from it and learn from my mistakes.

If you've read our backstory page, you already know the dirty details. 

I got myself in a world of hurt. It's important that I state (and that you clearly hear me stating) that I did it to myself. No one did it to me. I had choices. I made bad ones. It's no one's fault but mine.

I used credit cards and used them unwisely. I amassed debts and didn't have plans for how to repay them. 

I hid my head like an ostrich in the sand. I didn't deal with it.

The calls and the letters started.

"Where is our money?" -- "Please call us to arrange a payment plan." -- "Have you considered, perhaps, taking on a second job to help you make up for your debt?"

I ignored it all. I was like a child who covered his own eyes and thought the rest of the world could not see him. 

That was my worst mistake. It didn't help anything.

Eventually, I'm going to add more content for specific issues with collectors. I'm going to speak to certain scenarios and advise you as to how to proceed. 

For now, I want to say this: Not all of what you hear about collectors is true. Some of them are scum. That's true. But some people who owe money are scum too. That's not fun to say or to hear, but it's true. 

The truth is that we often focus on the collectors instead of the problem that is the debt we owe. Yeah, it isn't cool that they break the law, and I don't mean to say that you shouldn't stand up against that sort of activity.

Collectors are human beings. Some of them aren't very cool. Either way, they're just people trying to support themselves and their families. I've had some very good experiences with collectors who were not abusive, did not break the law and who were very amiable in reaching an agreement. That may be the exception and not the rule, but my point is that not all of them are bad and out for blood.

Stop focusing on the collectors. Stop looking for loopholes. Be working on a plan for how you are going to repay your debts.

This is just a scratching of the surface of what I will have to say about collectors. We'll talk more. Keep checking in.