Debt Elimination Success Seminar
I Hate Debt Homepage Section 1 A Look at Debt History of Debt Credit Card History Current State of Debt How You Got Into Debt Good Debt Bad Debt Business vs. Personal Debt Section 2 Dealing With Your Money The Two Step Plan Doing The Two-Step Step One Step Two The Paths Out of Debt 1- Create a Debt Payment Plan 2- Neogtiate Better Rates & Terms a.Consolidation Loans b.Consumer Credit Counseling Services 3- Negotiate Lump-Sum Settlements 4- Bankruptcy 5- The Easy Way 6- Win $1,000,000 Living Debt-Free Manage Your Money Make More Money Save Money SameMoney-MoreFun Stay Debt-Free You as a Business Section 3 Dealing With Your Creditors Alerts/Scams The Credit Industry Credit Industry The Fine Print The Secondary Debt Market The Debt Collection Process Original Creditor The Charge-Off Collection Agency Legal Problems Dirty Creditor Tricks Dealing with Debt Collectors Dealing with Debt Collectors Statute of Limitations Cease and Desist Letter Section 4 The Credit Report The Credit Report Credit Score Credit Repair Section 5 Dealing With Yourself The Critical Factor The Art of Prosperity The End of Failure Prosperity Coaching Section 6 Kids and Money Kids and Money How to Pay for College Section 7 Debt Information Bookstore Debt Facts Radio Show Resources About Us Privacy Policy Site Map If you find this information helpful I ask you to contribute to help me help more people. You can contribute through PayPal by clicking on this button Or you can mail in your contribution.	Dealing with Debt Collectors At one point or another we’re all going to have to do one of the scariest things with our debt collectors, talk to them. There are a large number of possible scenarios, ranging from simply being nice and talking to them all the way to suing them. I can’t tell you exactly which tactic will be the best for you at any given time. You will have to consider you’re overall debt strategy, including your financial and emotional situation. Here are some potential strategies. Talk to Them Sometimes simply talking honestly is the best thing you can do. This is usually most effective when you're current or just a little behind and are confident that you'll be catching up soon. It can also be effective if you are in big trouble and you're just about to make a big decision. If you're about to declare bankruptcy, there's really nothing to lose by telling the truth to your credit card company. They're going to find out anyway. If you're dealing with a collection agency they may either see this as a sign to give up or mount a last-ditch all-out assault. Scott Bilker is one of the most effective negotiators that I know. This is especially true when dealing with credit card companies in the early stages of debt. If you're going to be talking to credit card companies it's well worth getting his book Talk Your Way Out of Credit Card Debt Make Them Prove It When ever a collection agency or attorney takes over a new account they are required by law to notify you in writing that they are attempting to collect the debt. Within that letter there will be a paragraph that notifies you that you have the legal right to challenge the validity of the debt. If you do challenge the validity of the debt all collection activity must cease until the debt has been proven valid. Unfortunately you can still be sued at any point. As far as I know* there is no case law that determines exactly what a proper validation is so you may get back anything from a letter that basically says you owe the money to a stack of printouts of all of your credit card statements since the account was opened. Or you may get back nothing at all. *Here’s an update. It seems as though there has been a court decision that specifies what a proper debt validation is. I’m not sure if there have been other decisions, or if this one is the ultimate decision but as of now it’s the only one I know of. It’s the case of Chaudhry v. Gallerizzo. If you want to read the decision you can here. Or you can read my interpretation of the decision. That is that the collection agency can basically tell you that you just owe the money. While this doesn’t seem fair to me, that’s what the court said. Now the good news is that most collection agencies don’t know about this. So don’t tell them. If your bill is fairly new, within the last six months, challenging the validity of the debt that with a collection agency really won’t help much. If you get a letter that’s for a bill that is old, challenging the validity of the debt may be enough to cause the collection agency to give up. If it’s with an attorney it may slow down the legal process. Now, it may not. If the lawyer is gung-ho or has orders from the client to sue they're going to sue. But if you request proper validation the lawyer will have to provide it and will understand that you won't roll over and be an easy mark. If the case is questionable and the lawyer is just looking for a fast buck he may look elsewhere. If you do challenge the validity of the debt you’ll need to write a letter and send it certified with a return receipt requested. Avoid Them "Leave a message at the beep." An answering machine is a great way to avoid collectors. Or you could simply get a wireless phone to use as your primary phone, wireless phones aren't in the 411 database, and keep your old landline phone. You just turn off the ringer on the old phone and then let the collectors call. They won't bother you a bit. Another way to avoid them is to send them a Cease and Desist Letter.	The History of Debt Collection I Recommend Collection Agency Harassment: What the Debt Collector Doesn't Want You to Know Dealing with Collection Agencies Listen to Bud Hibbs on the I Hate Debt radio show. Segment 1 Segment 2 If you find this information helpful I ask you to contribute $1 (or more) to help me help more people. You can contribute through PayPal by clicking on this button Or you can mail in your contribution.

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