Debt Collection

Written by Amy Hall
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Debt collection conjures up pictures of aggressive creditors who call your house and threaten you until you pay up. In real life, this does happen and it is scary. The problem is that many people who are in debt don't realize that they have rights and that there are laws about the way a creditor can try to collect a debt.

It is never okay to call up a consumer and threaten them into paying money. It is never okay to yell, scream, and get nasty when on the phone trying to collect a debt. Collectors who contact you by mail or phone need to outline the nature of their calls, tell you the consequences if you do not pay your debts, and then speak with you about your options. Meanwhile, all of this is to be done with a level of respect. Unfortunately, this does not always happen.

What Can You Do?

If you are facing intimidating debt collection procedures, we can give you a few options that may help take the heat off your back. First and foremost, report any unprofessional debt collectors immediately, as harassing a consumer is against the law. Second, if you know you can't pay back your bills, contact a credit counseling agency who can work with you by negotiating with your creditors on your behalf.

Your credit counselor will work out a plan with you that will include budgeting and saving, as well as a payment schedule for you to follow each month. You will most likely have to pay the agency a certain amount each month, and then they will distribute that to your creditors. By consolidating your debt this way, you will watch your total debt balance go down much quicker, and you will be able to breathe a sigh of relief too.

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