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How Persistent Debt Collection Helps Consumers

If you’re one of the millions of Americans dealing with persistent debt, you might not believe it when we say that debt collection benefits you. But it’s true!

Debt collectors – and the companies they represent – are not financial boogeymen. They’re doing a job that can benefit you in many ways over the long run. 

In this blog post, we’ll discuss seven ways that persistent debt collection helps improve debtors’ financial lives.

1. It forces you to take a close look at your spending habits.

When you’re being pursued by a debt collector, it’s important to take a close look at your spending habits. Why? Because understanding your spending patterns is the first step to getting out of debt.

If you can figure out where your money is going, you can make adjustments to your budget and free up some cash to put toward your outstanding debts.

2. It motivates you to get organized.

When you’re in debt, it’s easy to feel like everything is spiraling out of control. But when you’re being pursued by a debt collector, it’s important to get organized and take control of your finances. This means creating a budget, tracking your expenses, and staying on top of your payments. Getting organized will help you get out of debt more quickly and avoid making late payments or missing payments altogether.

3. It makes you more aware of the consequences of not paying your debts.

If you’re not careful, debt can quickly spiral out of control. And when that happens, the consequences can be serious—including damage to your credit score, legal trouble, and wage garnishment. But when you’re being pursued by a debt collector, the consequences of not paying your debts become much more real. As a result, you’re more likely to make timely payments and avoid falling behind on your debts. 

4. It gives you a chance to negotiate a lower payoff amount.

If you’re struggling to repay your debts in full, persistent debt collection allows you to negotiate a lower payoff amount with your creditors. In many cases, creditors are willing to accept less than what’s owed if it means they’ll get paid something rather than nothing at all. So if you’re unable to repay your debts in full, don’t be afraid to reach out to your creditors and try to negotiate a lower payoff amount. You might be surprised at how willing they are to work with you.

5. It teaches you how to manage money better.

Dealing with persistent debt can be a frustrating experience—but it can also be a learning experience. If you find yourself financially over your head, persistent debt collection can teach you how to better manage your money so that you don’t find yourself in the same situation down the road. You’ll learn how to create a budget, track your expenses, and make smart financial decisions that will benefit you in the long run. 

6. It helps improve your credit score. 

While having persistent debt can damage your credit score, making timely payments on that debt can help improve your credit score over time—which will save you money in the long run by qualifying for lower interest rates on loans and lines of credit down the road. So even though it might be difficult to make those monthly payments now, know that doing so could pay off big time later on down the road when it comes time to borrow money again. 

7 . It gives peace of mind. 

Last but not least, one benefit of persistent debt collection is peace of mind. When all is said and done, knowing that all past-due accounts have been paid off can provide a sense of financial relief from stress. This newfound sense of security may just be worth any short-term challenges posed by debt collection proceedings. 

You Are Not a Debtor Boogeyman

While dealing with persistent debt collection can be difficult, there are several benefits associated with the process. From helping improve a debtor’s credit score to giving them peace of mind, persistent debt collection efforts may just help turn one’s financial life around for good.

If you’re a company struggling to get accounts current, consider working with a debt recovery service that understands how to approach debtors in a firm but respectful manner. One that protects you legally, keeps the conversation going, and the revenue coming in.

Southwest Recovery Services has many years of expertise in getting companies paid quickly. Contact us today to learn more!

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