How to Stop Debts from Going to Collection Agencies

No one wants their debts to go to collection agencies. There are some ways to keep you debts from being sent to collection. These are some of the ways that you can stop harassing creditors from calling you asking for payments. Bankruptcy does not have to be your only option for stopping your debts from going to collection agencies. Even if you have no job or very little cash during the month, you can still save your credit.

Thing's you'll need

Creditor names and telephone numbers

Step 1

Contact each creditor and explain that you cannot make the monthly payments. Ask them to reduce the interest rate and eliminate any late charges. Explain to them that you can only make so much a month for now. Even if they say no, start sending in that amount each month.

Step 2

Creditor calls may continue and they may threaten to send your bill to one of the many collection agencies, visit with a credit counselor. This person will contact all your creditors and make monthly arrangements that you can pay every month. This person will also have the creditor lower the interest rate and the late fees.

Step 3

Make the monthly payments to the credit counselor every month on time. As long as the creditors are getting what they agreed on from the credit counselor, they will not send your debts to collection agencies.

Step 4

Pay the monthly payment. If you have a problem, talk to the credit counselor right away. This person can talk with the creditors on your behalf. As long as you tell the counselor everything, the person can make other arrangements to avoid your debts being sent to collection agencies.

Tips and warnings

Once you talk to a credit counselor, do not talk to creditors yourself.

Your credit will be blemished, but can be repaired as you continue to pay your debts.