Patricia
BTGNow.net
Dani
debt kid
VA Loan GuyHow I manage collection letters in two easy steps
I get alot of mail. Between collection letters, post-bankruptcy spam letters, and actual mail, my mailbox is never empty.
How To Manage Collection Letters & Bills
I may not be able to pay all my bills, but gosh darn it if I’m not organized with them.
Step 1 - Label Your Folders
You’ll need three (two if you only have personal and no business debts) folders. Legal size is my preference, but use what works for you.
Label the folders “Current Collections - Personal”, “Current Collections - Business”, and “Reference Collections”.
Step 2 - File your collections letters
Once you have setup your folders, the system is easy. Keep your most current collection letters (offers of settlements, etc) in the appropriate folder. When I am sorting my mail, I like to open each collection letter, and use a paperclip to keep the return envelope attached to the letter.
When you receive an update statement or offer from a collection company (or, the collection company changes!), move the older letter into the “Reference Collection” file folder.
This system allows me to easily find my most recent statements when I need them. It also manages the massive amount of paper that you receive very simply.
on February 27th, 2008 at 5:23 pm
Note: This simple folder system could work for current bills as well. My cash flow situation doesn’t quite let me have this simple of a system….yet!
on February 28th, 2008 at 9:17 am
02/28/08 Unbelievable! You are dwelling on how to file paperwork, which you shouldn’t have, instead of how you’re paying the bills and being done with it. I hope you make the letters really big on the IRS DEBT folder, because that’s the impact it will have on your life. Also, Mr. Techno-Savvy makes handwritten labels for his manila folders? What’s with that?
on February 28th, 2008 at 9:59 am
I do think the wolf has a point about using a Sharpie to label your folders. While I don’t have any collection letters, keep getting bills every month and they never stop, I don’t have to worry about those folders. I am curious about the purpose of this post and why this is important? Who’s trying to collect from you right now, what do they want, what are you doing besides organizing what they send you? While I realize you cannot pay most if any of these people right now, you can’t just ignore the problem and hope it goes away. Can you do settlements with any of these people or have you seriously considered any of their offers? Collection companies always buy and sell off debt for pennies on the dollar hoping someone will send some money to cover costs.
I know you used to have a spreadsheets and posts in the past that listed all your debts and their terms. Granted I know about half of the 300k in debt you have is owed to your mom, but where do you stand today? That IRS post you had recently regarding your payroll tax issue seemed like a serious financial issue that shouldn’t be put on the backburner. One week later now, where do you stand on that issue?
on February 28th, 2008 at 11:14 am
@ Wolf - I do have an IRS tax folder. It is my top priority debt.
@ Jim - I’ll have an updated spreadsheet very soon. I’ve got exact IRS numbers now, so it’s time to look at the sheet and see if there are any debts I can maybe pay down or settle. I can assure you I am not just ignoring the problem, I’m doing everything I can right now to get to place to be able to start knocking these down…all in good time.
on March 17th, 2008 at 11:49 am
I am curious as to how u daytraded so much money away ? were u betting with huge margins, that the US Dollar would rise… the us dollar has gone down since Bush got in office and is freefalling recently.
i dont know how wealthy your family is, but if i had that much debt, i would just sell my assets, and pay the IRS but the collection agencies can be ignored.. the worst they will do is sue you and collect a judgement.. but if u have no income/assets, they cant collect anything.