Debt collection
Debt, arrears & collectionsThe process of recovering unpaid debts, often carried out by lenders or collection agencies.
Overview
Debt collection can involve letters, calls, and payment negotiations.
Debts may be sold to collection agencies for recovery.
Why it matters
- It can add stress and fees to a debt.
- It can lead to defaults and legal action.
- Engaging early can help manage outcomes.
FAQs
Can a debt collector affect my credit score?
The collection itself does not change your score, but defaults and missed payments do.
Should I ignore debt collection letters?
No. It is better to respond and seek advice.
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