Control Your Creditors And Pay Off Your Debt - Yes You Can

Greg Nicholls

Visitors: 447

A few years ago I figured my family would be better off if I was killed in a car accident as my life insurance would pay off all our bills and my wife would be able to pay off the house.

Looking back on this I realize just how desperate things seemed. I was up to my eyeballs in debt and could not make all of my monthly commitments, then, the phone started to ring and the bills turned different colors - it was the "Collection Department". Well, I thought that was bad; after a few months of them calling, it got worse. My creditors had sold my debt to a Collection Company who had me on speed dial.

I was a guy in sales who had good and bad months, only at the time, I was in a bit of a dry spell and the collection calls did not make my life any easier. They would call me at home, at work and on my mobile phone.

I began to think that my only option was to claim bankruptcy, or as I said before, get killed in a car accident or something, so the insurance paid off.


A friend of my suggested something simple and also helped me understand a bit of how the collection companies work:

Collection Companies are in the business to make money, they either make money off of interest, are paid a percentage of the collection, or a combination of the two. They are hired by the company that you owe money to, because the Collection Companies methods are very harsh and typically get results. The Collection Companies will threaten your credit bureau (big deal) they will mentally try to beat you down, they will try anything that they can to get money out of you. Here is the thing, many people have just decided that they do not want to pay and are playing just as many games with the Collection Companies as they are playing with those that owe money. If this is you and you are just playing games, leave this page now.

If you go bankrupt, you lose AND they lose; the collection company makes no money and the company that you owe money to has to write off your debt as a business loss.

Here is the solution - Develop a Win-Win:

Figure out what you can afford to pay per month, for three months in a row, without having to settle with eating the Kraft Dinner box before your next pay check. . . $10, $25, $50, $100, then figure out what the number could be the following three months. Try to make the number twice as much for the second period (example: Three months worth of post-dated cheques for $25, followed by three months of post-dated cheques for $50)

Then, YOU call the Collection Company (not when they call you to beat on you for money) and TELL THEM what you are going to pay them; they won't like it, but THEY HAVE TO ACCEPT IT! If you are showing a "reasonable effort" to pay back your debt, they have to leave you alone and accept the money. Six months is more than enough time to get a better job, start a business, or whatever and will likely be enough time to get generally back on your feet.

Now, if you are not able to completely stand the monthly bills after six months, then, call them up an tell them what you are going to do next. By the way. . . this works with the banks and car companies too, but probably three months at the max.

The point is, as long as you demonstrate to them that you will be regular in your payments and that the payment amount will go up over time, they will leave you alone. If they decide to strike your credit, this is not nearly the hit you will get on your credit report if you claim bankruptcy. In fact, showing future creditors that you worked your way out of debt instead of going bankrupt will earn you bonus points.

You can do it, I know you can!

To Your Success!

©Greg Nicholls - Nicholls Consulting - All rights reserved

Find out how Greg Nicholls has achieved Financial Success by subscribing to the “Deserve Money Newsletter” for free. Visit right now for all the details.

Greg is also known for teaching people a simple system on how to build a successful business while working from home; for more information about the business that brought home a 60-70 hour per week executive, who now makes more money on 1/3 the hours; contact Greg by email at , or call his toll free number right now from anywhere in North America 24/7 at 1-800-388-4563, or from outside North America to Canada at +778-786-2287 to setup your appointment.

Greg Nicholls, a 36 year old Husband, Father & Entrepreneur will help you understand why you Deserve Money in your life and how to get it! To subscribe to his free weekly newsletter, visit and begin to benefit from his inspiring insights today.


Article Source:

Rate this Article: 
Debt Problems - Legal Action by Your Creditors
Rated 4 / 5
based on 5 votes

Related Articles:

Eliminate Debt - Why Creditors Accept Favorable Debt Settlement Deals

by: Matt Couch (December 01, 2009) 
(Finance/Debt Management)

Why Creditors Don't Like Debt Settlement Companies - Get Out of Debt

by: Matt Couch (December 20, 2009) 
(Finance/Debt Management)

Eliminate Unsecured Debt - Tips on How to Get the Upper Hand on Your Creditors ..

by: Matt Couch (December 14, 2009) 
(Finance/Debt Management)

Debt counseling - How to deal with creditors

by: Bill Smiths (August 10, 2006) 
(Finance/Debt Relief)

Debt Problems - Know What to Expect From Your Creditors

by: Philip McClarence (September 11, 2008) 
(Finance/Debt Management)

Harassment of People in Debt by Creditors

by: Michael Sherriff (July 04, 2005) 

Debt Problems? You Can Negotiate With Your Creditors

by: Douglas Hanna (July 25, 2005) 
(Finance/Debt Relief)

How to Reach a Compromise With Creditors in Debt Solution

by: Clear S. (June 07, 2010) 
(Finance/Debt Management)

Debt Settlement - When It's Time To Settle With Your Creditors

by: Susanne Myers (February 21, 2007) 

Debt Problems - Legal Action by Your Creditors

by: Philip McClarence (September 11, 2008) 
(Finance/Credit Counseling)