Debt collectors are notorious for being the bad guy. Often hired to represent your actual creditor, these companies have no interest in your situation other than getting paid. After all, their paycheck comes from a portion of what they recover from you. This makes for some muddy waters that often results in you taking the wrong course of action. Here is what you need to know about debt collections:
You have the right to fair collections – this means that you don’t have to subject yourself to bullying, threats or harassment. The Fair Debt Collection Practices Act outlines a specific set of rules that debt collectors must follow. Get to know these guidelines so that you can protect your rights and report violations of this law.
You don’t have to deal with collectors – many people assume that once their delinquent account has been turned over to collections, they cannot negotiate with their creditor directly. This is false. You always have the right to direct negotiations, even if your creditor attempts to persuade you otherwise. Anytime you are dealing with your creditor directly, submit your requests and responses in writing to ensure a paper trail of any agreements.
You can protect your assets and resolve your debts affordably—negotiating a repayment plan with a creditor isn’t always easy. If you are delinquent on a secured loan, such as a mortgage or car, you may be best served to contact a Dayton bankruptcy attorney. Secured debts are at a far greater risk for liquidation than unsecured debts, such as credit cards or medical debt. However, bankruptcy can also help you to resolve unsecured debts that can free up your income to get back on the path to financial freedom.