How to Pay Debts With Money Orders
Paying debts with money orders is a smart move when dealing with debt collection agencies. Some debt collectors eventually file lawsuits to collect debts, and they may use information from your personal checks to garnish your bank account if the lawsuit is successful. Using money orders allows you to safeguard your banking information. Money orders are convenient because they are widely accepted and available at many locations, including grocery stores.
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Instructions
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Read billing statements for your debts to obtain the account numbers and mailing addresses.
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Call the debt collectors to confirm that they accept money orders if that information is not on billing statements. Tell the bill collector that you cannot pay by personal check if that is offered as an option. Minneapolis Legal Aid reports you should never agree to send a postdated personal check to pay a debt collector -- even if the debt collector offers that as an alternative.
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Purchase a money order from a local store. Purchase multiple money orders for a specific debt if the amount exceeds the dollar limit on a single money order.
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Fill out the money order by following instructions on the front of the money order. Be sure to include the account number for the debt.
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Make a copy of the money order for your records. Tear off the customer stub according to the directions on the money order, and keep it along with a copy of the complete money order.
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Mail the money orders to debt collectors.
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Tips & Warnings
Purchase from reputable stores or sources to avoid counterfeit money orders. United States post offices are a safe choice.
