When you’re owing a debt, you will most likely end up talking with a debt collector over the phone in the near future. A lot of people in financial trouble make the mistake of panicking and believing everything a debt collector explains to them. The very first thing someone owing a debt must do is to educate yourself on your present situation and how you can make the most beneficial decision for yourself.
Since we have been in this economic Tsunami of sorts, credit card debt settlement has really caught on. Maybe not like wildfire but it’s getting its fair share of media buzz from both proponents and opponents. The basics of credit card debt settlement are pretty cut and dry; if you owe $13,275.89 on your Capital One Mastercard and you haven’t made a payment in let’s say fourteen months, you are a candidate for credit card debt settlement. In that time Capital One would have charged off the account and turned it over to a debt collection companies uk.
Everyone has the capability of bouncing back from their failures if they put their mind to it. You have to believe in yourself, take action, and be persistent.
It is possible, however, to stop these debt collection calls and negotiate your debt through the mail. Under the federal debt collection laws, any debtor can request that the debt collector contact them through the postal service only. However, this request must be in writing.
The next step in negotiating your debt through the mail is to discuss the total debt amount. It is usually possible to negotiate a settlement amount that is smaller than the total debt. Be clear in your letter that any settlement payment must report to the credit bureaus that the debt is paid in full at that amount. At the very least, you must negotiate to stop all further interest charges.
For some people the decision seems simple – just take a deep breath, file bankruptcy and get it over with. Before you go down that road let’s sit the two debt solutions side by side and evaluate which is better for your situation.
Thirdly, to learn what you can do, (according to the law) to stop the phone calls, dunning letters, abuse and harassment. The Fair Debt Collection Practices Act is divided into 18 sections. I’ll repeat this again, DO NOT proceed any further until you read each section in its entirety. After reading it, if you believe your rights have been violated, take the facts of your complaint and contact an attorney that understands the Fair Debt Collection Practices Act explicitly and specializes in fighting for the rights of consumers.