How to Find Out What Bills You Have in Collections
Dealing with outstanding bills that have gone into collections can be a daunting task. Collections can negatively impact your credit score and financial stability. It’s crucial to identify which bills have been sent to collections so you can take appropriate action. Here’s a step-by-step guide on how to find out what bills you have in collections.
1. Check Your Credit Reports
The first step in identifying bills in collections is to check your credit reports. You can obtain a free copy of your credit report from each of the three major credit bureaus – Equifax, Experian, and TransUnion – once a year. Visit AnnualCreditReport.com to access your reports.
2. Review Your Credit Reports
Once you have your credit reports, carefully review them for any accounts that have been sent to collections. Look for any unfamiliar accounts or accounts that you believe should not be in collections. Pay attention to the details, such as the original creditor, the amount owed, and the date the account was sent to collections.
3. Contact the Collection Agency
If you find an account in collections, contact the collection agency responsible for the debt. Request information about the debt, including the original creditor, the amount owed, and the payment terms. Be prepared to verify your identity and provide personal information to ensure the accuracy of the debt.
4. Negotiate the Debt
Once you have confirmed the debt, it’s time to negotiate. Collection agencies are often willing to settle the debt for less than the full amount owed. Be prepared to offer a payment plan or a lump-sum payment, depending on your financial situation. Make sure to get any agreement in writing before making a payment.
5. Pay the Debt
After negotiating the debt, pay the agreed-upon amount. Use a secure payment method, such as a credit card or a payment service, to document the transaction. Keep a copy of the payment receipt for your records.
6. Update Your Credit Reports
Once the debt has been paid, request that the collection agency or original creditor update your credit reports. This will ensure that the account is reported as “paid” and may help improve your credit score.
7. Monitor Your Credit Score
Regularly monitor your credit score to track any improvements resulting from paying off the debt. You can use free credit score monitoring services or purchase a credit score from one of the credit bureaus.
By following these steps, you can effectively identify and manage bills that have gone into collections. Remember, addressing these issues promptly can help protect your financial future and improve your creditworthiness.
