January, February, and March are when the highest amounts of debt are payed. This is because most people get a decent size tax return and are responsible with it and attempt to pay off some debt.
The issue with this is when dealing with collection agencies. Many collection agencies during these months will send out billions of settlement offers for debt that may or may not be yours.
With the extra cash in your hand, you take the collection agency up on their offer. Here are three things to pay attention to when paying collections agencies:
Make sure that the collection agency is legally able to collect on the debt. Google and research the company before paying one cent.
Make sure that the debt isn’t reporting on your credit report. You can get your entire credit report here. If the debt is not on your credit report, certainly take the company up on their offer. If the account is reporting on your credit report, ask the collection agency to delete it from your credit report if you pay it. If they agree, get something in writing from them before paying.
Get documentation that the payment has been made. It is not uncommon for a collection agency to claim they did not receive payment and still charge you.
Before you pay any debt, make sure that you follow these steps to protect yourself and you credit score!