When you have a lot of debt, the constant phone calls and letters from debt collectors can be one of the most stressful things. You do have some rights and protections when you deal with them, which is good news.
Debt collectors have to follow certain rules when they try to get people to pay back debts. The Fair Debt Collection Practices Act spells them out. They can't call before 8:00 am or after 9:00 pm, for example. They must also stop making harassing phone calls if you ask them to.
The Fair Debt Collection Practices Act's full text can be found at the following website:
http://www.ftc.gov/os/statutes/fdcpa/fdcpact.htm#801
Under these rules, there are a few ways to deal with debt collectors. The easiest thing to do is just not pick up the phone. If your phone has caller ID and you don't know who's calling, don't pick up. If it's someone you'd like to talk to, that person can leave a message.
If you do pick up the phone and it's a debt collector, you can tell them to stop calling. This should be followed up with a letter telling them to stop, which should be sent via certified or registered mail so that you can be sure they got it. If a debt collector gets one of these, the law says they have to stop calling.
Paying the debt is the most obvious and effective way to deal with debt collectors. After all, you agreed to pay the debt when you got it, so you should give the money back to the person who gave it to you. Even if you told debt collectors to stop calling you, you should still pay it.
If you can't pay off the debt all at once for some reason, you may be able to negotiate a lower interest rate or a partial payment if you explain your situation. Keep in mind, though, that if you tell a creditor you got into debt because you did too much shopping you didn't need, they won't feel sorry for you. On the other hand, if you just lost your job and are having a hard time paying your bills while you look for a new one, this may give you some room to negotiate.
If you do negotiate a better deal with your creditors, be sure to keep your word and pay what you said you would. Bill collectors may seem mean and cruel, but their only goal is to get the money you owe them. That's what they do. Once you've made plans with your creditors to pay back what you owe them and shown that you can be trusted to keep your word, bill collectors will move on to other people and leave you alone.
