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Debt Collection or Debt Recovery – Where are We headed?

We take loans for almost everything – a house, a car, a computer or laptop, an LCD TV, a foreign vacation, and a lot more.

We have every intention of repaying that loan, but there are times when we just can’t – due to things like loss of income or unexpected expenses, there are times when we stop paying the EMIs.

 

What Happens When You Stop Your EMIs?

When you don’t pay your EMIs, the bank or financial institution usually sends you friendly reminders during the first couple of months.

Even if you don’t start repaying the loan after that, then your account gets transferred to a debt collection agency or a debt recovery agent – these are the people that specialize in debt collection.

You must have heard a lot of stories in the media about the strong arm tactics of such agents – trust me, it is not pretty!

 

The Scenario in USA

The culture of taking a loan to buy something is relatively new in India. However, this has been prevalent in America for a long time now.

And therefore, debt recover too is long prevalent there. Following is an interesting info-graphic that sums up the US situation very well.

 

american debt collection infographic

Sourcehttp://FrugalDad.com

 

Your Experience

Do you have any experience of debt recovery? Have you heard any stories from your friends or family?

If so, do let everyone know through your comments below!

 

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