Effective Debt Relief Buffers You From Aggressive Creditors
“Hello. I’m calling to collect a debt.”
Those seven words can be downright frightening to a person mired in debt. Creditors and bill collectors can relentlessly badger you if you are behind on credit card payments, student loans, auto loans or other consumer debt. They are only doing their jobs. But you just want them to go away. In truth, they will not go away until all your debts are paid. But you can get help while becoming debt free and put some distance between you and your creditors.
The best debt-reliefcompanies communicate with creditors on your behalf while trying to lower your debt amount. A popular version of this type of debt relief is called debt settlement. Debt settlement is an alternative to debt consolidation as it works to reduce your credit card debt amounts so you have less to pay.
The debt settlement expert knows creditors and has expertise in reducing consumer debt. The premise is your creditor is willing to accept a reduced payment to wipe off your credit card debt so they get at least some of their money quicker. Enrolling in a debt settlement program saves you time, money and stress.
Third-Party Collectors
Many mainstream lenders pass off overdue debts to third-party collectors. Third-party debt collection is a burgeoning business as many Americans find themselves getting further behind on bills. For example, a job loss, high medical bills or unrestrained credit card use quickly saps a person’s income.
But the third-party collector has no sympathy for you misfortune. He just wants the debts paid by any means necessary, even if means bullying or threatening you. In turn, people in debt can be evasive and belligerent toward collectors trying to get money for their clients. It is just an all-around ugly situation that is best handled through debt settlement.
A reputable debt settlement firm has built relationships over time with creditors to help you get a better deal on your credit card debt resolution. Many people in deep debt do not understand the rules governing debt collection and aggressive creditors will take advantage of that. Some bill collectors call people and tell them they will go to jail if they don’t pay their debts. You cannot get jail time for overdue consumer debt unless it involves fraud.
The Fair Debt Collection Practices Act sets guidelines for third-party creditors. Here are some important highlights of the act:
- Third-party creditors cannot call you before 8 a.m. or after 9 p.m., without your consent
- Third-party creditors cannot call you at your job if your employer prohibits such communication
- Third-party creditors cannot threaten you with physical violence or use profane or abusive language to get you to pay your debts
- Third-party creditors cannot disclose you owe debts to relatives, friends or any other person during their attempts to locate you
- If you have an attorney, the debt collector must contact the attorney instead of you in an attempt to collect debts
If you have a problem with a debt collector, you can contact your state’s attorney general’s office or the Federal Trade Commission.
Debt Settlement Deals With Collectors
Under a debt settlement program, you creditors are directed to contact your debt settlement expert instead of you. Collectors may resist at first and still hound you for their money even though they know you have the services of a debt settlement firm.
Some creditors may view a debt settlement company as a roadblock to getting their money, even though the process helps them recover money faster. Talking with creditors after you get into a debt settlement program may jeopardize efforts to reduce in your credit card debt amount. Just let your debt expert handle communications with your creditor.
Author bio: Brian Williams, a graduate of the University of Texas at Arlington, has 11 years’ experience writing and editing at daily newspapers in Texas. Learn more about Credit Solutions. Credit Solutions is your alternative to debt consolidation.
