I have a credit card gone to collections, what's the worst that could happen?

Question

It's has 700 dollars U.S. currency on it and a third party contacted me and left a message saying I needed to call them yesterday or they would have no choice but to take the next step (which wasn't specified) where it would be out of their hands. I was not able to contact them since my phone is crap and I didn't check my messages until the next morning at my second job(becuase I was at my first job), which was of course too late. Now I am worried and scared..Do you all know what the worst thing is that could happen besides whats already happend. By the way I am willing to pay it off in full I just didn't have the money before hence the second job.

Answer 1

Been there, done that, seems scary at the time as the collection dept/agency will make all kinds of threatening overtones.
Firs thing to do is sit down and calm down, nobody is going to come kicking the door in with a warrant, not at this stage anyway.
At this stage they are just firing warning shots across your bows.
As for being out of their hands? Rubbish, they will always have control of the debt unless they sell it on to a collection agency (which they can do in the UK, not sure about the U.S.
Contact them as soon as possible, be firm with them and explain your circumstances and (most importantly) what you are going to do about it. If you start receiving threats from the person you are talking to, ask to speak to a senior manager or supervisor, they may tell you they are all in meetings - that is all BS, get the name of the person you are talking to, advise them that you are not prepared to be threatened, you are not a criminal and cannot face criminal charges (unless you are guilty of fraud, which you are not) - sometimes they will threaten court action and posession of your goods - they need a warrant from the court before they can do that and before that happens they will need to go through lawyers, court hearings (which you will receive a summons for long before the hearing) etc etc.
If you are getting nowhere with the person you are talking to, call back and ask for a manager/supervisor, if they are not available then find out when they are and call back then.
If you clear the debt straight away OR reach an agreement with them to clear the debt then your credit rating may suffer a little but nothing more.
Remember though, that any agreement is legally binding on both sides, you have to maintain your payments and they cannot take further action whilst that agreement is in place, if they do then the Judge will simply throw their case out of court.
Always get any agreement confirmed in writing, ask for it, don't assume they will send written confirmation.

The important thing with any problem like this is to keep things in perspective, it is very frightening when they start making threats but there is a limit to what they can do.

So, always:
Be polite.
Be professional (even if they aren't).
Don't threaten or allow yourself to be threatened.
Don't lose your temper (if they do then don't rise to the bait).
Keep control of the conversation, if you feel you are losing control then advise them that you will call back, hang up and calm yourself - if you lose your cool, you will lose your case.
Always have a plan of action before you call, remember you are looking for a resolution - this can only be a benefit to both parties, emphasise this point - make sure they know that this is a temporary glitch in your finances.
Always be reasonable, and be seen to be reasonable, this will get you further than anything else (hard to do but it does pay dividends in the long run).
Always, always, always get a name and write down the date and time of the conversation, the name of the person you are talking to, the proposals you are making and the result of the conversation.
Always, keep calm, you are the customer, you do have control of the situation - even if they are telling you that you don't.

Good luck, I hope my advice and experience has been of some use to you.

Answer 2

I'm no expert but probably at this stage just another letter or visit with interest on top.

Try to communicate with them as soon as possible - usually arrangements can be made that are acceptable to both parties as long as you tell them what is going on.

I know you are not deliberately avoiding them but the longer you leave it the worse it will get. If you find yourself unable to pay a bill in future, contact them before you miss the payment deadline.
Good luck

Answer 3

Pay the original creditor not the collection agency. When and if the agency calls you again give them the receipt #, check # or whatever and instruct them NOT to call you again. If you don't settle the debt they could go for a judgement to garnish wages or your income tax refund. If you've got the money, just pay it.

Answer 4

Collections have reputations for making threats. don't listen to that crap they're legally not allowed to threaten you. If it's gone to collections it's already on your credit report that you defaulted. Call them and make arrangements to pay. That's it. You'll get past it. Just be more careful and take care of your future bills.

Answer 5

mastercard companies and the sequence companies that purchase up charged off debt are all greater probable to bypass to courtroom over even somewhat small balances. some credit taking part in cards have their very own in-abode sequence depts and are very aggressive approximately gathering defaulted money owed. Capital One is one that takes no prisoners. they have been commonplace to sue for as low as $2 hundred. it seems that Citibank is following healthful. undergo in recommendations that judgments are good for a protracted time and may well be renewed. in case you have no longer something now, they are in a position to attend till you do.

Answer 6

Call them first thing Monday morning and arrange to pay.

Answer 7

if you have the funds to pay off in full...PAY IT NOW.. contact the company... lame excuses that your phone is crap and didnt check messages is no good... you ran the bill uyou know when it had to be paid... ignorance is no excuse!........if you ignore it and its in england they will get a court order and send in the bailiffs to recover the debt and you will have to pay for the court costs and bailiffs costs too

Answer 8

pay your bills and you wouldnt need to worry.