Ignoring Your Bad Debt or Your Debt Collector is Not the Way to go
June 21, 2008
Lets face it. No one likes to talk about bad debt and no one likes to talk to a debt collector. Talking about bad debt means talking about your failures and a debt collector is more than willing to rub it in.
Heck - I know of some people that don’t open their mail if it even hints at being a letter from a collection agency. Worse, there are some that dont open a letter if its a current bill.
Bad mistake.
Yeah, talking about bad debt is not fun at all. However, if you have bad debt, it is a topic that you must face, especially if you want to get in and stay in the game.
Your bad debt tells gamers (creditors) that they do not want you on their team. You will be left out of the game. Staying in the game is the best way to take advantage of the opportunities that will take you where you want to be.
It is true that credit can get you into trouble if you abuse it. This is true with just about anything.
A big mack is delicious and appears quite harmless. Try having a big mack everyday for a month and see how that will make you feel!
You must use credit and eat big macks responsibly. I know you dont want to hear this kind of language because you have heard it all before. I dont tell you this to lecture, I tell you this because it is true. Maybe if someone would have drilled this into you long ago maybe you would not be buried in debt and maybe you would not have a weight problem.
Then maybe you would have tons of cash and be in better health.
If your credit report is not screaming out that you are absolutely a good credit candidate, you better start now to make it so.
Though it may sound nice to live solely on cash, ignoring your bad debt will restrict you, if not prohibit you, from taking advantage of the many profitable opportunities that are available only to those people with good credit.
Such as starting a small business, buying property, making a home purchase, buying a vehicle, paying for college and even getting an employment position that pays well over $75,000 dollars annually.
How about simply renting a good quality apartment or qualifying for a cell phone without having to put down a super large deposit.
Bad debt is not the end of the world; it just gives you limits as to what you are able to do in this world.
No matter how bad your credit is today, facing your problem head on is the only way to start making a change for the better.
So the next time a debt collector calls, be polite, admit to nothing and gather all the pertinent information.
Such as collectors name, agency name, supervisors name, mailing address, alleged creditor that is owed and alleged amount that is owed.
Once you gather this information, politely crank the phone on the debt collector. Then send a cease and desist letter, Certified Mail, to the collection agency.
This will give you the breathing room you need to start the process of improving your credit. The last thing you need is a debt collector kicking you while youre down.
Order your credit report and review it carefully and begin disputing errors and request verification of debts that you do not agree with. With so much identity theft out there, you may have stuff on your credit report that does not belong to you.
Be diligent about your credit. Take the action necessary to improve your credit score so that you can stay in the game.
Do not be misled that a good credit report is not all that important. Unless you have millions of dollars in the bank, you should consider your credit report as good as gold and take the proper measures to guard it as such.
God Bless.
Carlos D Cruz
Debt Credit Learning Center
