Deal With Debt Collectors
If you have been defaulting on your payments for more than a couple of months, then you know all about debt collectors and their pressure tactics. But that does not mean you have to submit to any of these pressure tactics. Here are a few basic rules that the debt collectors have to face, failing which you can initiate action against them.
Firstly, realize that the debt collector is not your actual creditor. It is a third party or go-between for the creditor. The Fair Debt Collection Practices Act governs the actions of debt collectors. As per the Act, the debt collector is not allowed to call you before 8 in the morning and after 9 at night. If you have informed your debt collector that you are not allowed to receive calls from them while at work, they have to desist from calling you during that time period.
Try to negotiate a payment with your debt collector. Don’t be too ambitious. The amount, while being realistic, should be something that you can afford to pay regularly. If you have multiple creditors, prioritize your payments. Make a list of your creditors with the most urgent ones at the top of the list. Pay the urgent ones off first before you move to the next in the queue.
If none of the above methods help you find a way out of the problem, then you need to contact a credit counseling agency. They are in a better position to negotiate with your creditors and give you reasonable repayment rates and extended time periods. Before you approach any agency, be sure to check their credentials.
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December 6th, 2006 at 1:10 pm
Another option is to utilize debt termination (http://www.fdrs.org/debt_termination.html ). I was able to eliminate my debt as well as protect my credit score. I recommend it for anyone who is deep in debt and feeling lost.