Living with extreme debt is an all-encompassing experience.
It can feel like there is never rest from your ballooning financial obligation. Every hour is filled with dread as your owed accumulated amount grows. It’s not uncommon to have difficult feelings during this time. Things are not made more comfortable with the introduction of collection agency calls. Receiving multiple, persistent calls throughout the day from debt collectors (either the creditor themselves or a third-party agency) takes its toll.
If you find yourself in this dilemma, there are steps you can take to improve the situation.
Renegotiate Your Payment Plan
The most straightforward technique to end collections calls is by making payments. Obviously, this is easier said than done. If you’re receiving calls from collection agencies, you presumably missed payments.
Ignoring high payments doesn’t solve the situation. The only way to stop collections calls and actively work towards lowering your debt is by calling your creditor/lender. Creditors want you to repay and are often open to negotiating and reducing your monthly payments. Some even often hardship programs that can freeze monthly bills for a specific period of time. But be careful— just because payments are frozen doesn’t mean your debt is not growing due to accumulating interest.
Write Letter to Credit Collectors
Sometimes paying your monthly minimum debt payment is not an option. If this is the case, it doesn’t mean you have to accept calls from credit collection agents throughout the day. Under the Fair Debt Collection Practices Act, you are protected by federal law. This act forbids credit collectors from calling you before 8:00 am and after 9:00 pm. They are also not allowed to contact you during work hours. If any collector violates these guidelines, the Federal Trade Commission recommends the following action:
“…ask for the collector’s mailing address and tell them – in writing – to stop contacting you. Keep a copy of your letter for your files. Send the original by certified mail, and pay for a “return receipt” so you’ll be able to document what the collector received. Once the collector gets your letter, they are not allowed to contact you again.”
-Federal Trade Commission
What If the Calls Continue?
Even with a letter, collection agencies may still call. You have two options if this occurs. Your first is to file a complaint online or by phone with the Consumer Financial Protection Bureau. According to the CFPB website, 97% of most consumers receive timely responses after a claim. In some severe cases, legal action may be taken against the collection agency. This option is very rarely done because of the difficulty in proving malicious harassment over just mere annoyance.
CreditGUARD doesn’t recommend this approach due to the potential legal and financial ramifications. You made need a lawyer before beginning this process.
That will result in legal fees in addition to the debt you already owe. If all of this seems complicated, it is.
Enlisting the help of a credit counseling service like CreditGUARD can put an end to receiving relentless phone calls from credit collectors. With our team of certified credit counselors equipped with financial tips, tools and debt management programs, CreditGUARD can help you take the first steps toward a new healthier financial frontier. With discipline, budgeting and a plan (and a little hard work), you too can become debt free.
Call CreditGUARD today at 800-500-6489