Dealing with Collection Agencies

	Dealing with Collection Agencies - Money Problems Radio Show (Opens in a new window. Optimized for Windows Media Player 6.4 and later versions.)
Originally aired on October 22, 2005.

Show Topic:

Many Canadians deal with serious debt problems each year; on today's show we explore the options for dealing with your Money Problems.

Guests:

Douglas Hoyes and Ted Michalos are the founders of Hoyes, Michalos & Associates Inc, one of Ontario's leading personal insolvency firms. They emphasize a "fresh start" when dealing with money problems. They can be reached at www.hoyes.com or, in Ontario, at 310-PLAN (no area code required).

Show Summary:

Collection agents and bill collectors are just doing their job when they call you at all hours of the day and night.

There are rules that they are required to follow. They are not allowed to harass you. More details can be found at http://www.hoyes.com/Collection_Agencies.htm

There are many strategies our listeners can use if they are getting calls from collection agents. You can work out a payment plan with them if that's possible, or try to get a loan to pay them off so they stop calling you.

However, there are options when you are having money problems, including getting a debt consolidation loan, filing a consumer proposal or, as a last resort, filing a bankruptcy.

You have options, so we recommend you contact one of our bankruptcy experts for advice on your situation.

Question of the Week:

Q. I owed money on a credit card. I was making payments, but then I lost my job. I got behind on my payments, and now I'm getting calls from a collection agent three times a day, at home and at work. They even called my mother and my neighbours. I'm afraid I'm going to get fired if they call me at work again. What can I do?

A. Bill collectors and collection agents are calling you because you owe money. To stop them from calling, your options are:

	Work out a debt repayment plan on your own to repay them by cutting your expenses and increasing your income.
	Get a debt consolidation loan. For example, if you own a home, you may be able to get a second mortgage and use that money, at a lower interest rate, to repay your higher interest rate credit cards and other debts.
	File a Debt Management Plan. These plans are filed by non-profit credit counsellors. You pay your debts in full over a two to five year period, and the creditors agree to waive any further interest owing.
	File a consumer proposal. This is a great way to negotiate a settlement with your creditors, and in most cases you end up paying less than the full amount owing.
	If no other option works, filing bankruptcy is the final option.