I have been working with a debt service for about 4 months now. I am currently over $13,000.00 in debt. I received a letter from a collection agency and i’m worried.
Should I have contacted the credit card company before working with the debt service organization? Would it help if i contact the card company now and told them i was working with the debt service company?
There are two types of companies that could be labeled as offering debt services. I assume that you are talking about a company that offers either debt management (credit counseling) or debt settlement services.
It is important to know that no credit counseling or debt settlement company has any authority at all to alter your legally binding agreement with your creditors for the credit extended to you. So you can’t simply rest easy thinking that a debt service company is going to wave a magic wand and make things all better.
If you are now being contacted by a collection company regarding a debt that you included in a program offered by a debt service company, there are a few reasons why this can happen.
The reason why you were contacted is not as critical as it is for you to contact your debt services company and let them know that you are being contacted by this collection company. The debt service company should be able to help you understand exactly why.
While it does not hurt to contact your creditors to tell them you are working with a debt management or credit counseling company, it isn’t all that helpful either. The chances of it getting noted in the system so the right folks see it, is slim. You are better off telling the creditor when they call.