Debt collectors can be extremely persistent in tracking down claims and may be unscrupulous in their tactics and threats. In these situations, legal advice might be necessary, with a wide variety of free legal options available. For this reason, there is no excuse not to get the legal protection necessary.
Free Legal Advice Venues
A number of ways exist to get free legal help for debt collection. A range of public websites offer information dealing with debt. These sites include Law Guru and the debt collection forum on Free Advice.com. Another resource is the National Foundation for Credit Counseling, or NFCC. On the foundation's website, you can find a number to call a counselor, meet with others in your area facing similar problems or just do research. The advice is on all kinds of debt, including mortgage, credit card debt and education loans.
Debt Collection Avoidance
Avoiding debt collection is a no-win strategy. In the end, it will definitely affect your credit score and be almost impossible to escape. According to the NFCC, a much better strategy is to deal with your debt head on and try to arrange a settlement or payment plan. While this will still affect your credit rating, it is a much better option than bankruptcy.
Negotiating a Settlement or Consolidation
If you know it is impossible to pay off your sky-high debt, a number of companies are available to negotiate your settlement for free. Use the NFCC as a resource to find a reputable company that offers this service. Such a company may be able to help you discount 25 to 75 percent of your debt at no cost, depending on your situation. One possible approach is to consolidate your debts, often at a discounted amount; you will make one payment to the organization consolidating your debt. The consolidator may take a small fee but will forward agreed-upon payments to your creditors. While there is a hit to your credit rating for using such services, they are options that you may want to consider.
Court Judgment
Whether you have a good lawyer or no legal advice at all, in the case of a legal judgment you must comply or face bankruptcy. In those instances, the claimant has the right to garnish wages or use other methods to reclaim its funds. Therefore, it is imperative to avoid a court judgment before it gets to that point. Use the free legal advice available and improve your circumstances.
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