How to Stop Credit Card DEBT Collectors

The phone rings and you aren't sure if you should answer it or not - after all, it could be the credit card debt collectors calling again. Last time, one guy got really nasty and called you a deadbeat and made some pretty scary threats. You simply don't have the money right now to pay the debt in full. So, you avoid the telephone calls, ignore the late notices and let it all continue to pile up. But, there is a better way to handle credit card debt collectors.

Difficulty: Moderate

Instructions

1. Be proactive. Gather information on all your credit cards and phone the companies to arrange a repayment plan or debt settlement. One of the key words to use in this exchange is "bankruptcy". However, do not threaten unless it is something you are considering. However, if you tell them that you are trying to avoid bankruptcy, but need them to work with you on payments and eliminating late fees, many banks will work with you.

2. Know your rights. The Fair Debt Collection Practice Act offers some pretty straight forward guidelines about what collection agencies can and cannot do when trying to collect money from you. Harassing you, calling at strange hours and making threats are all violations of this law and can be reported. Read up on the law (info in the resources section) and be prepared to let them know that you are aware if they are in violation.

3. Never give them access to your bank account. This is a recipe for disaster. Many people have had to deal with collection agencies wiping out every cent they have in a bank account. If they will only accept an electronic check or payment, open a separate free account at your bank. Just be sure any agreed upon amount you have said they can withdraw is in that account when the date approaches for the payment.

Tips & Warnings

• Don't be afraid to talk to your credit card company. If you are already swimming in debt and can't pay your bills, you really have nothing to lose by negotiating with them. The worst they can say is no.
• Credit card debt collection agencies are not allowed to phone your family, friends or employers and share that they've been unable to collect a debt from you. This violates the Fair Debt Collection Practices Act.

[ursula1]

on 10/2/2009 This article is succinct and helpful. Real practical and useful help!

[br0wneyedgyrl]

on 8/4/2009 good info! 5*

[pep1player]

on 6/10/2009 nice info 5*