How to Pay Off Debts in Collection

The most important element of the debt-collection process is knowing your rights. Andrey_Popov/Shutterstock

Dealing with collection phone calls and letters can seem overwhelming. In the first quarter of 2024, there was 3.2 percent of aggregate debt in some form of delinquency. According to the Federal Reserve Bank of New York, the aggregate debt for the third quarter of 2024 was $17.94 trillion.

That means there are probably many other Americans facing collections. But how do you stop the phone calls and pay your debt once they go to collections? Is there anything you can do?

Confirm You Owe the Debt

Mistakes are made, so ensure you owe the debt in question. For example, the lender may have reported the wrong amount to the collection companies or credit bureaus.