Having debt is not pleasant, but it happens to many people. If you pay your debts regularly, you will eventually get out of them, but if you ignore them, stay behind, the situation changes dramatically. The debt collector may contact you. See what is the debt consolidation and the people who deal with it.
What is debt consolidation?
Debt consolidation is related to the pursuit of financial claims by the creditor from the indebted person. The word itself comes from the Latin word “vindicatio” and now means “to investigate in the manner specified in your rights to things or pay”. There are many myths around consolidations and debt consolidation, so it is often perceived as illegal, but this is not true. As part of legal provisions, debt consolidation is legal and allows applying for repayment of debt in a way that does not break the law.
Currently, two types of debt consolidation activities are distinguished. The first type is debt consolidation:
- amicable – inducing the debtor to repay the debt,
- court proceedings – it is connected with the fact that the debtor ignores the payment orders, does not show willingness to pay it voluntarily and the creditor wants to obtain a decision before the court, and then a decision with a declaration of enforceability, to have grounds for initiating bailiff enforcement. Such debt consolidation is characteristic mainly for law firms.
The second type of debt consolidation is a bit more complex, as it contains debt consolidation:
- amicable – includes attempts to induce the debtor to repay by telephone or email;
- court proceedings – it seeks to obtain a court judgment and subsequent affixing it with a declaration of enforceability, when the already issued ruling will be final (it will not be open to appeal);
- bailiffs and vans – related to the handling of bailiffs’ executions in all its aspects and the search for whether the debtor does not conceal assets from which debt could be drawn off;
- punishment – under which criminal proceedings against the debtor are carried out, the debt may even turn into a fraud on the side of the person or entity wishing to recover their money. This type of debt consolidation is primarily used by private law firms or law and detective firms.
What is the purpose of debt consolidation?
The very origin of the word explains what the main purpose of the debt consolidation is: to recover the money that the debtor owes to the creditor or creditors. All actions undertaken for this purpose must be lawful and may not go beyond certain rules that would be harassment. After checking what kind of debt the debt collector is dealing with, one can go to action, ie contact with the debtor. The contact can be by phone, text, e-mail, letter. These are the basic tools for debt consolidation, but you can also use more modern methods. This applies to issuing opinions on the debtor on websites or on social networks, eg Facebook.
This is not unfounded, because currently they are opinion-forming and have a large range, so often the debtor will be more willing to cooperate after seeing such opinions than after the next prompt.
Debt collectors are sometimes threatened, like mafia members. This is unnecessary because they have the powers and responsibilities that they must stick to. Any actions going beyond them may be considered as harassment. Despite demonizing the debt collectors, it is better to communicate with them, explain their situation, the reasons for not paying the debt and establish a reasonable way to get rid of debt.
How can the debt collector contact the debtor?
The debt collector can primarily contact the debtor in the form of a telephone, text, mail or e-mail. At the same time, he can call the debtor when he is at work, but he can not call the employer, because it is against the law to inform about the debt of third parties (boss, neighbors). In addition, the debt collector may meet with a person in debt, but not suddenly, and after an appointment and the debtor’s consent to the meeting. At this meeting, you can agree on a conciliatory solution to the problem. It is worth remembering that avoiding a meeting with an indicator is not a good idea. The debt will not disappear, it will grow (interest), and the creditor will eventually decide to refer the case to court.
While recovering, you can use many elements of the action to improve effectiveness. Among them are important debt consolidation tools that help in finding debtors or forcing them to pay their debts. Among the tools should be distinguished above all: the publication of debts on the debt market, transferring the case to a debt consolidation office, transferring the case to the court and providing information about the debtor to the Economic Information Bureau.
Debt consolidation tools
Special organizational units dealing with debt consolidation are established in banks and, at the same time, monitor payment dates and wait with them. Thanks to this, the youngest debt can be raised on an ongoing basis.
The first step in effective debt consolidation is to check the payment of the debtor, because without it the effectiveness of the action is not the best or you can not get back the money at all. Thanks to this, you can try to determine how to quickly collect your debts. If the debt is not regulated for only 3 months, then it is the so-called young debt and they are the kind of debt that can be most effectively picked up. The older the debt, the more difficult and sometimes impossible it is. Are you looking for help? Check loans without bik.