There are benefits to paying off collection accounts.
Paying a collection agency is often painful. If you’re debating whether or not to pay a debt you owe; here are five benefits of getting the collections agency off your back for good.
1. Stop collection calls for good
As long as you have outstanding debt, you’ll probably continue getting calls from collections agencies. A cease and desist letter may end calls from one particular debt collector, but sometimes collection accounts often are switched between agencies, so you’ll keep being contacted about the debt until it’s taken care of.
2. Get approved for credit cards and loans
Many banks won’t approve a loan application as long as you have outstanding collections accounts on your credit report. This means no mortgage, no car loan, and no credit card. Additionally, some employers won’t hire you for certain jobs if you have unpaid debts on your credit report. Why allow that debt to stand between you and your need for a home or a car?
3. Eliminate the risk of being sued
People sometimes assume debt collectors won’t waste their time or money suing over a small collection, but that’s not true. As long as you have an outstanding collection, there’s a risk of being sued for what you owe. A lawsuit could lead to a court judgment, a public record that will tarnish your credit report for years.
4. Increase Your Financial Security
Debt is a serious threat to your financial security because it keeps you from making the most of your money. What you spend on debt payments could be stashed away for a rainy day, for your retirement days, or for your kids’ college days. Once you become debt free, you’ll be able to work toward becoming financially secure.
5. Reduce the Stress in Your Life
Debt can lead to extra stress as you worry about how you’re going to cover all the debt payments and other living expenses. A little stress every once in a while isn’t harmful, but constant stress can lead to problematic health issues. In some cases, becoming debt free can literally save your life.
There are consequences to ignoring your collection notices.
Many people think collectors won’t sue for debts over a certain amount, but truthfully, collectors can sue you for a debt of any amount. If the creditors get a judgment against you, many other complications can follow. If you’re sued, you’ll need to consult an attorney on the best way to proceed.
Unfavorable Interest Rates
Not all applications are denied because of a collection on your credit report. You might be approved, but you’ll be required to pay a higher interest rate to compensate for the increased risk of non-payment.
Credit Report Marks
Debt collections are a serious signal to other creditors and lenders that you haven’t always kept your payment promises. You’re deemed a riskier borrower, and because of that, some of your applications for new credit may be turned down. You’re especially likely to be turned down for a mortgage if you have unpaid debt collections on your credit report.
Creditor Benefits and Collection Options
WHAT YOU BENEFIT?
• Quality Service
• Efficient service delivery
• Regular updates and reports
• Payment to service provider becomes due only upon successful recovery and collections
• Strong empowerment credentials at both strategic and operational level
• Strict compliance with industry rules and regulations
WHAT YOU CAN EXPECT?
• Upstream advice on documentation, admin and financial procedures
• Innovative thinking for effective approaches to your credit problems
• Strict adherence to all applicable laws
• The highest regard for your reputation and goodwill.
• Tight controls over collection procedures and confidential information.
• A commitment to the latest and best in data processing capabilities.
• Reporting systems that give you a clear view of your collection picture
More About Us…
MBA Debt Collection Services (Pty) Ltd was founded in the year 2016. MBA Debt Collection Services (Pty) Ltd is a Professionally Registered and Recognized Collections Company that provides our clients with professional and effective recovery services. In meeting this objective, our organization places its primary emphasis on answering the specific needs of our clients. The efficiency of our staff carrying out their tasks, combined with the creative power of our professional management team, makes working with MBA Debt Collection (Pty) Ltd a seamless integrated process.
What We Do?
The highest regard for your reputation and goodwill.
MBA Debt Collection Services is proficient in the collection of both corporate and consumer debt. At MBA Debt Collection we match the skills set to the instructions on hand, and as a result, our corporate and consumer staffs operate in their areas of expertise. When working with MBA Debt Collection, you will benefit from the size, expertise and commitment that each of our staff have to their profession.
MBA Debt Collection (Pty) Ltd has established a tracing capability which draws on information obtained from various consumer databases as well as a field service to locate debtors and obtain the necessary contact information. This information is verified directly with the debtor through the MBA debt Collection call centre. We aspire to deliver superior value to our clients through our services.
VALUE ADDED SERVICES
The services we offer include all forms of communication, negotiating, default credit record listing, pre-legal and legal collections in consumer and commercial collections across a range of industries. Our firm has strong expertise in debt collection as well as a specialization in automated legal debt collection services. We are professional, dedicated and maintain high levels of confidentiality.
At MBA Debt Collection, balancing a firm approach with sensitivity is always our aim and we will look to ensure that the well being of individuals is at the forefront of what we do, as well as ensuring we safeguard the reputation of our clients. Maintaining communication and gaining understanding of your customers ensures we obtain the right information to make right decision.