The cost of meat, chicken, fish and eggs is 14% higher now than they were a year ago. The price of fruits and vegetables are 12% higher. The price of electricity is 12% higher. And gas was as expensive as it has ever been. Anyone who has been inside a store or tried to buy something online has noticed they are spending more money than they used to. And that means, for a lot of people, that choices have to be made. Priorities have to be re-assessed and only the necessities are what gets purchased on a daily basis. Consumers are choosing to skip doctor’s appointments, car repairs, and other expenses in order to have money to pay for gas and food. In a lot of cases, consumers are also choosing to stop making payments on unpaid debts. Which may be shortsighted and cause more damage in the long run.
Paying an old medical debt or apartment debt might not seem like a priority right now, but consumers should think of them as repairs that need to be made to a house or car, or even an injury that someone chooses not to get treated. Generally, the longer that you wait, the worse things get. A leaky roof doesn’t just stop leaking. Squeaky brakes stop working. The same can be said for unpaid debts. While in many cases, a collector may not do anything more than call or send letters asking you to take care of a debt, there are situations where debts are reported to credit bureaus, and the longer a debt goes unpaid, it could negatively impact a consumer’s credit score. That could keep someone from being approved for a lease or mortgage, or being able to get insurance for a vehicle, or a credit card to help in emergency situations. And, in some cases, consumers are sued for unpaid debts, which can lead to wage garnishments and seizing funds in a consumer’s bank account.
These don’t happen all the time. But whether it does or does not, consumers should maintain open lines of communication with companies attempting to pay unpaid debts. The people who are calling are consumers who are feeling the pinch, too. They understand the situation and want to find a solution that works for everyone. Even if it means making small payments until things turn around. Something, anything, is better than nothing.
It’s important for consumers to prioritize their finances right now. Heck, it’s always important for consumers to prioritize their financial situations. But there is a difference between setting priorities and trying to sweep some expenses under the rug, hoping that they just go away.
Want to learn more about how we can help you collect on unpaid receivables? Reach out to us today!