If you are being called by a collection agency, this means that your creditor has already turned over your account to a third party for collection. Collection agencies will often demand prompt payment in full of an outstanding balance. If you are unable to pay this amount, you should attempt to work with the creditor directly. You can explain your situation and often work out a payment plan to relieve the debt. Many nonprofit organizations, such as the Consumer Credit Counseling Service, can help you negotiate such payment plans with creditors. They can also help you learn to budget your finances so that you can avoid future debt. In working with your creditors, keep them up to date on your progress. Positive and frequent communication with creditors will often lead to improved relations, lessening the chances of your account being turned over to collection agencies. For more information, contact a personal finance professional in your area.
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