Dealing with Collection Agencies: How Can I Stop Collection Agents from Calling?
Collection agents are calling you in most cases because you owe money. Here are your options for dealing with collection agencies:
First, you could change your phone number to a new, unlisted phone number. This stops the phone calls from collection agencies, but of course does not address the underlying problem (you owe money).
Second, you can attempt to work out payment arrangements with them yourself. For example, if you owe the creditor $500, you could offer to pay them $250 from your next paycheque, and $250 from the paycheque after that, in full satisfaction of your debt. Payment arrangements are usually sufficient when dealing with collection agencies.
But what if you owe many thousands of dollars to more than one creditor, and it’s impossible for you to make payment arrangements with all of them?
The next option would be to try to get a debt consolidation loan. If your credit is still reasonably good, you may be able to borrow from a bank at a low interest rate and pay off all of your high interest rate debts, like credit cards.
If that doesn’t work, you could try a debt management plan through a non-profit credit counsellor.
If none of these options work, you are left with the final two solutions: proposals and bankruptcy.
In a consumer proposal, you work with a trustee to make a formal, legally binding settlement with your creditors. In a personal bankruptcy, your debts are discharged. Either way, you have legal protection, so collection agencies are no longer calling you.
Remember, collection agents won’t just stop calling you on their own; Dealing with collection agencies is something you need a plan for, so contact a bankruptcy expert today to explore your options.
Read our article on Canadian Debt Collection Laws.