If you have run into problems and been unable to pay your debts then you could be faced with calls or visits from a debt collection agency. Once debt collectors become involved with a debtor then the situation worsens for both debtor and creditor. Other than mortgages and car loans the vast majority of debts relate to unsecured debts such as store cards, credit cards and some personal loans.

If a person has a credit card and continually misses payments then the credit card company or bank may sell the debt on to a collection agency. Even though the debtor now owes that money to the collection agency, collection agencies are bound by law to abide by certain regulations. Continual, badgering calls are not permitted, and if the debt collection agency carries on in this way then they could be in trouble. If a debtor feels that they are being harassed with telephone calls from a collection agency then they have the option to write a cease and desist letter, refusing to deal with the agency other than by mail.

While the best solution to debt is to come to some arrangements with the original creditor rather than a debt collection agency, that doesn’t always happen. Creditors can take you to court for non-payment of your debt but this is usually a last resort as it involves the company in extra costs that they may not want to commit to. If you are in debt and being pursued by a debt collection agency then you should seek advice from a debt counselling organization. Do not pay for debt advice; contact either the Citizen’s Advice Bureau or the Consumer Credit Counselling Service, both of which offer debt advice for free. In some cases the organization may deal with your creditors on your behalf in an attempt to get them to stop or at least reduce any interest payments.

If you do seek help with your debts then the best advice while this is going on is to write to the collection company laying out your financial commitments and offering them what you can afford each month. Even if the debt collection agency refuses what you are offering and threatens you with legal action you should still continue to make the payments as it will look better for you if the matter does go to court.

When a debtor is taken to court by creditors, the judge or magistrate will look at your financial situation and order you to pay a certain amount each month, despite the creditor’s objections. The court may even dismiss the debt if they think the creditors have been unfair. If you haven’t made any attempt to make payment on your debt the court may decide that you should pay off the debt by having your belongings sold. It is always best to offer payment, however minimal the amount.