The economy is not looking good and many of you are choosing food and shelter over paying credit cards.  I hope that you are not defaulting on your outstanding debts, but if you are, there are a few things you need to know before the bill collectors start hounding you.

Even though you aren’t paying your debts, you have rights!

I have had to deal with a couple of collectors in the past, and it has helped me to learn my rights as a consumer when it comes to dealing with these not-so-pleasant people.  I never believed the horror stories that I heard about dealing with bill collectors until I started dealing with them directly.  All I wanted to do was talk to them about the situation, but it seemed like nobody was ever listening.  It was absolutely ridiculous and incredibly frustrating.   After my horrible experience I wanted to know how to avoid these situations in the future and how to get out of existing situations as quickly as possible.

Here are some things to remember when dealing with a collection or past due account on your credit report.

1.    First, make sure you are looking at your credit report at least once a year to make sure everything is accurate.

2.    Collectors are only supposed to call you between the hours of 8am and 9pm.

3.    Collectors are not supposed to call you at work if you request them not to do so.

4.    If a collector ever starts harassing you with threats to sue you, put you in jail, garnish your wages, get you fired from your job, or anything else like that, immediately terminate the call and send them a letter stating that they must cease all communication with you at once.  These people will do anything to guilt you or scare you into paying your collections.

5.    You can always negotiate.  They are never going to accept negotiations at first, but depending on the situation, you have the power to work out different situations other than paying the amount in full. 

6.    You are only obligated to verify your address and where you work.  You do not have to answer any of the crazy personal questions that they will ask you.  Collectors will try to get as much information out of you about your financial situation so that they have a better picture of whether or not you can pay the collection.  Never give them any information that they are NOT entitled to.

7.    Never give a bill collector electronic access to your checking or savings account.  They will wipe it out no matter what they tell you.

8.    If you agree to any terms with the bill collector, make sure you get it in writing.  Never agree to something without getting it in writing.  If the collector refuses to put the agreement in writing, then he or she never intended on fulfilling his or her promise.

If you would like to read more about these rights visit the website for the Fair Debt Collections Practices Act.  Remember, if you owe the money, then you owe the money!  Don't try to get yourself out of it unless the collection truly is inaccurate.  The ethical and moral thing to do is repay all of your outstanding debts when you are in a situation that allows you to repay them.  You must look out for yourself first.  You cannot pay a collection before you pay the rent, utility, or grocery bill.  These people do not care about these life situations, and they will try to get you to pay them before you pay for a roof over your head.  It will be a very tough time for you and your family, but you will get through it.  Keep telling yourself that this is only temporary, and devise a plan to boost your income and pay off debt.   Protect yourself first, and know your rights.