How to Find What You Owe to Collections
Dealing with collections can be an overwhelming and stressful experience. Whether you’ve forgotten about an old debt or have been targeted by debt collectors, knowing exactly what you owe is the first step towards resolving the situation. In this article, we will guide you through the process of finding out what you owe to collections and provide you with the necessary tools to navigate this challenging situation.
1. Check Your Credit Reports
The most straightforward way to find out what you owe to collections is by checking your credit reports. The three major credit bureaus – Equifax, Experian, and TransUnion – are required by law to provide you with a free copy of your credit report once a year. You can access these reports at annualcreditreport.com. Once you have your credit reports, review them carefully to identify any accounts that have been sent to collections.
2. Contact the Collection Agency
Once you’ve identified the collection account on your credit report, contact the collection agency directly. Request a written statement of the debt, including the original amount owed, any fees or interest that have been added, and the payment terms. This written confirmation will serve as an official record of the debt and can be helpful if you need to dispute the amount or negotiate a payment plan.
3. Verify the Debt
Before you make any payments or agree to a settlement, it’s crucial to verify the debt. Ask the collection agency to provide proof of the debt, such as a copy of the original contract or a statement from the original creditor. This will help ensure that you’re not being charged for a debt that you don’t owe or that has been inaccurately reported.
4. Review the Statute of Limitations
Most debts have a statute of limitations, which is the amount of time the creditor or collection agency has to sue you for the debt. Once this time has expired, the debt is considered uncollectible. Check your state’s statute of limitations to determine if the debt is still enforceable. If it’s not, you may be able to dispute the debt and have it removed from your credit report.
5. Consider Debt Settlement
If you’re unable to pay the full amount of the debt, consider negotiating a settlement with the collection agency. This involves agreeing to pay a portion of the debt in exchange for the agency to remove the account from your credit report. Be cautious when negotiating settlements, as they can have tax implications and may affect your credit score.
6. Seek Professional Help
Dealing with collections can be complex, and it may be beneficial to seek the assistance of a professional, such as a credit counselor or an attorney. They can help you navigate the process, negotiate with collection agencies, and protect your rights.
In conclusion, finding out what you owe to collections is an essential step in resolving your debt. By following these steps, you can gain a clear understanding of your financial obligations and take the necessary actions to address them. Remember to stay proactive, verify the debt, and seek professional help if needed.
