Whether you’re a Spender or a Saver by nature, needing money to pay for your wants, needs, and the in-betweens is quite normal. In fact, the need for money for different reasons is now so well understood, that there are a myriad of ways you can attain it even if rightfully it does not belong to you.   Here are 5 Ways You Can Reduce Debt to Avoid Collections.

Be careful you are not spending more than you make…

Ways You Can Acquire Additional Funding

One such way is through having a Credit Card. This card unlike your Debit Card will allow you to spend money within your card limit that you do not actually have in hand.  The catch? Whatever amount of money you spend using your card, not only will you have to pay it back, but if you aren’t careful you may also find yourself, paying interest, late fees, and overdraft fees on the money you owe.

Similarly, you can acquire additional funding by getting a loan. Unlike credit cards, loans tend to be more widely accessible for almost anyone regardless of what stage in life they are at. So, if you’re a student in need of additional funds to pay your tuition, you could easily apply for a student loan.

Whilst, if you’re an adult who could use some additional cash to make a down payment on your dream car, there are car loans. We could go on and on about the different situations in wish you may find yourself needing additional funding but the point is getting the cash upfront is easy, but paying it back, not so much.


How does Debt occur?

With all the ways in existence that allow us to spend money that we don’t have, it may sometimes be difficult to remember that the money we spend isn’t actually ours. The result? We end up with ton loads of debt, which for whatever reason we struggle to pay off. When this occurs, we become the target of collections agencies like MCA who are hired by our creditors to ensure we repay our debts.


5 Ways You Can Reduce Your Debt

It’s never fun to get a call from a Collections Agent regarding a debt you are owing. It is even less fun when you have been avoiding your Collections Agent and they proceed to make contact with your friends and family members concerning your whereabouts. If you are struggling with repaying your debt, here are 5 ways you can reduce it and avoid collections:


  1. Prioritize Your Bills

While we can’t say that paying any, one bill is more important than paying another, the truth is, you may not be able to afford all your bills. If this is the case, it will help if you are strategic about which bills to pay. When prioritizing bills here are some things to consider:


  1. Tax payments are non-negotiable
  2. Debts secured with collateral could result in loss of property
  3. Debts that feature high-interest rates could worsen your debt


  1. Pay More Than You Have To

The amount you pay monthly on your various debts is not set in stone. When you can afford to, pay more than is necessary so that you can cancel your debt out faster. When making increased payments on mortgages, however, make sure there is no prepayment penalty and when doing so on loans ensure it is paid to the principal and not the interest.


  1. Collect Unpaid Invoices

A large part of the reason many persons end up in debt is that someone else owes them money, who is owed money from another person, and the cycle of owing continues until everyone is left in debt. To avoid this, you can reach out to one of MCA’s trained Collections Agents who will be able to acquire the money you are owed so that your account is not sent to collections.


  1. Negotiate Lower Interest Rates With Your Creditors

Where possible seek to reduce your debt by having your interest rates lowered so the money you do pay goes towards your actual balance and not the interest that has grown on that balance.


  1. Create Additional Sources Of Income

Having another source of income means you will have more money to use when making payments on debts you already owe, as well as it could also reduce the likelihood you will need additional funding for your spending ventures in the future.


BONUS: It really should go without saying but one of the best ways you can reduce your debt is by refraining from creating additional debt. Is that item you are about to purchase on your Credit Card a want or a need?

Want VS Need


MCA is a third party debt collection agency that has been in constant business since 1950. We are rated A+ with the Better Business Bureau and we pride ourselves on excellent customer service along with delivering great recovery rates. There is no cost to you unless we collect it! Why not try and re-coop some of your past due accounts with no out of pocket expense?