- January 24, 2023
- Posted by: Taurus Collections
- Category: Blog
It’s tax season, and consumers across the country are filing their taxes in order to get the return they’ve been hoping for. But while it can be exciting to think about that refund cheque hitting your bank account soon, there’s another equally pressing reason why you should pay attention this tax season – debt collection!
Overview of Debt Collection Companies and Their Tactics
Debt collection companies are organisations specialising in the pursuit of money owed to creditors. These companies typically employ several tactics in order to recover debt, including phone calls, emails, letters, and even legal action. For many debtors, their primary contact with collectors will be through phone conversations.
During these conversations, collectors may attempt to pressure debtors into making payment arrangements or discuss options for settling the debt for less than what is owed. Collectors may also try to negotiate payment plans over the phone; however, it is important for debtors to be aware that they are not legally obligated to make any such agreements without first reviewing all of the terms and conditions associated with them.
In addition to traditional communication methods, many debt collection agencies also use other tactics, such as sending frequent emails and letters in an effort to motivate delinquent accounts into making payments or entering into payment arrangements. Additionally, some agencies may even resort to filing legal proceedings against debtors if all other attempts at collecting the money have failed.
In this situation, it is best for borrowers to consult a lawyer before deciding how to proceed, as they may be able to help negotiate a more favourable outcome or find alternatives that don’t involve taking legal action against them.
Overall, it is important for borrowers to understand their rights when dealing with debt collection companies to know what tactics can and cannot be used by collectors when attempting to collect a debt from them.
How Knowing Strategies Used By Debt Collection Companies Can Help You Handle Your Debts
Debt collection companies are a necessary part of the economy since they help creditors get paid back what is rightfully theirs. However, dealing with debt collectors can be intimidating if you don’t know how to handle them properly. But by understanding the strategies used by debt collection companies, you can equip yourself with the knowledge needed to protect your rights and manage your debts more effectively.
One of the most common strategies employed by debt collection companies is sending frequent letters or calls reminding you of unpaid debts. Once creditor hands over a debt to a collector, they assume that their efforts will increase the chances of recovering what is owed to them – so they will do whatever they can to contact you regularly until payment is received in full.
If you are hit with too many calls or letters from debt collectors, remember that you have certain rights under the law: for example, debt collectors must not contact you before 8 am or after 9 pm and cannot use threatening language or false information when attempting to collect payment.
Other tactics used by debt collection companies include offering repayment plans and settlement options. Some collectors might be willing to accept reduced payments on your overdue balance as long as it’s paid off within a reasonable amount of time; this could be beneficial for those looking for ways to pay off their debts without having to fork out huge amounts of money at once.
It’s important that you read through any repayment plan or settlement offer carefully before signing anything; make sure that all the details are clear and that there aren’t any hidden costs or fees associated with it.
Finally, if none of these strategies prove successful in getting you to pay up, some debt collection companies may take legal action against you. This involves filing a lawsuit against you, which could lead to wage garnishment – where part of your wages are automatically withheld each month until your debts are paid off – or even jail time in extreme cases where fraud is involved.
To avoid ever having to go through this process, make sure that you keep track of all your payments and talk openly with creditors about how best to repay them before things reach this point.
By understanding the strategies used by debt collection companies, you can get ahead financially and protect yourself from becoming overwhelmed by unmanageable piles of unpaid bills in the future.
Making the Most Out of Tax Season to Tackle Your Debts
Whether it’s student loans, mortgages, or credit cards, debt is a reality. But if you use the right strategies during tax season, you can make a big dent in your debt load. Here are three ways to make the most out of your taxes and tackle your debts:
1. Take advantage of deductions
Make sure to review all of the deductions available to you and take advantage of any applicable ones. This includes itemising deductions such as charitable contributions or state and local taxes if they exceed the standard deduction. You should also look into other credits like education credits or energy credits that may reduce your tax bill even further.
2. Set up automatic payments
Depending on your debt type, setting up automatic payments with your bank could save you money in interest charges and help you pay off your debt quicker over time. Not only will this help you stay organised throughout the year, but it will also ensure that your monthly payments won’t be forgotten or late as they come out automatically from your account every month.
Taurus Collections (UK) Ltd. can be your one-stop destination if you want to successfully boost your odds of collecting debts. Use our Late Payment Calculator to calculate your outstanding credit amount. We help our clients with certain debt collection services that include:
- Business financing
- Outsourced credit control
- UK & international credit checking
- No win-No fee debt recovery