Falling into debt and not being able to pay your bills is a horrible experience that can leave you grasping for any help you can get. Unfortunately, there are many unscrupulous companies and individuals who are willing to prey on you because of your strong desire to get help. While you have options when facing debts collections, you must use care to carefully determine what your needs are and who can help you.
Debt Collections
Dealing with aggressive debt collectors is often one of the most stressful, difficult experiences for anyone who has fallen behind on bills. A debt collector is a person who is there to try to convince you to pay a debt. Whenever you deal with a collector, you have the right to not be subjected to harassment, intimidation and other illegal tactics. A debt collector must comply with federal laws that limit what they can do or risk fines and penalties.
Debtor Rights
As a debtor, you are protected by a variety of state and federal laws. You have the right, for example, to demand in writing that a collection agency stop calling you or contacting you at all, though the creditor can still sue you after. You also have the right to demand proof that a debt collector is actually entitled to receive payment from you for the debt. If the collector cannot provide proof, they are no longer allowed to try to collect it from you.
Free Debt Consolidation
Debtors who've fallen behind on payments often look for outside help, and promises of "free" debt consolidation or "debt settlement" programs can seem too good to be true. Often, they are. When you consolidate your loans with a new lender, that lender may not offer you a service fee for the consolidation loan, but that doesn't mean the service is free. Consolidation loan companies will make money off of you from the interest and fees you pay over the course of the loan.
Help and Advice
There is help available for people in need of debt help or considering debt consolidation. The Department of Justice maintains records of companies that are registered to provide credit counseling to consumers. You can also contact your state's Attorney General's office or an attorney in your area. If you are considering other methods, always research the company you are considering using and make sure they are trustworthy.
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