How to Pay Off the Debt or Consider Other Debt Relief Options
Once you’ve sent the cease and desist letter to the debt collection agency, it’s time to look at your budget to see whether you can either pay off the debt in full, or consider other debt relief options, such as a debt settlement, consumer proposal, or a debt management program.
If you decide to repay the debt in full, make sure you get a receipt for the payment and don’t ever send cash in the mail.
In many circumstances paying the debt in its entirety isn’t possible, in which case you can talk to the collection agency about making a payment arrangement. But before you agree to any payment arrangements, go through your budget to see what you can reasonably afford without falling behind on other payments and living expenses. If you need help looking at your budget, one of our credit counsellors would be happy to help you.
Also, it’s important to ask for written verification of the debt owed — signed by a representative of the debt collecting agency — before sending in any payments. This will avoid any misunderstanding about what you are supposed to pay and the time period in which you must make the payments.
Finally, don’t forget to keep a record of each of your payments and file the paid-in-full or debts settled confirmation that you get at the end in a safe place.