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Debt Collection Agencies Adapt to Credit Crunch

A debt management company in San Francisco has reported an increasing trend in debt collection agencies being prepared to accept longer term payment arrangements.

Solve Debts, a debt management company based in San Francisco, California, director Andy Creager said ” Banks and credit card companies are trying to protect themselves from a wave of defaults that are taking place. As a result, consumers are now is a good position to negotiate with their debt collectors or lenders.”

While not all debt collection firms are willing to negotiate, a large percentage understand that “something is better than nothing” and in hard financial times for everyone, working with a debtor to reduce what they owe is a more beneficial task.

Federal Management recommends contacting the collection agency chasing you and asking to be put on a regular payment plan if you are unable to clear a debt in full. You will find most firms are quite willing to sit down and plan a mutually beneficial arrangement out.