Debts and loans are a part of our daily lives. You cannot avoid these financial assistances if you want to survive in this modern world. When you take a loan, you have to pay it back sooner or later. It is best if you make it sooner than later as it will add to your credit score and help you later when you are applying for a online quick loans. So, you have to make the repayment plans as soon as you apply for a quickcash
If you fail to make so much as one timely payment, your loan will gain a defaulted status. The financial institution will send you a few warning and if you do not respond to them or make arrangements with them to make the payments, they will hand over the case to a debt collection agency. These collection agencies are apt to employ any and every method to make you pay the money. Ethics are not always the top priority of these agencies.
The debt collection agencies work for a commission so they do not leave any stones unturned. The first and foremost thing that they can do is call you at your home and at your work place. They might also call your friends and relatives and find out about your financial status. Another thing that they do is publish your name in the defaulters' list and this is probably the most embarrassing thing that can happen to you that will harm your credit score in the moist adverse way. They can get the permission to garnish your wages and also restrict your social service benefits. These will make you financially unstable if you have an accident and have to apply for disability benefits and also after your retirement. But, now you have a shield in the form of FDCPA (Fair Debt Collection Practices Act) that will protect you from the harassments of these collection agencies. Now, they can no longer harass you in any which way they want. If they do, you can sue them under this act.
To save yourself from all these troubles, you have to seek help when there is still time. The best debt collection help is available from the financial institutions themselves. As soon as you get the default notice contact your lenders. If you have taken a federal loan, then there are a lot of options that you can choose from. Delinquency is a benefit that is available only for the federal loans. It allows you a period of 9months or 270 days after you miss one regular payment. During this time you will get regular reminders regarding your outstanding amount. You can consolidate your loans if you cannot afford to pay so many monthly installments. You can also go for extension. This will allow you to pay your loan back in easy installments for a longer period of time which can extend up to 30 years.
In today's world, it is possible to get help legally in almost all the cases. But you have to know about the various ways to get help.