Debt Collection

• Payment delinquency prompts fast action by companies via collectors in an attempt to recoup lost money. Collectors may try various tactics to get the consumer to pay, including calls to a workplace. Collectors are allowed to contact consumers in person, by mail, using a telegram, fax or telephone. However there are limits to the times when the consumer can be contacted. Most consumer credit counselors can provide details regarding collection restrictions.
  As well as consumer debt, many people are experiencing medical debt, which can also create difficult financial burdens. Some hospitals and insurance companies are willing to work with the consumer to help alleviate the financial burden by creating lower payments over a longer amount of time. However medical debt collectors can also be aggressive in an attempt to recover funds.
  In either situation when a collector is pursuing debt, it is important for the consumer to try to communicate with the collectors in order to reach resolution.
  
  

Debt Strategies

• The worst debt is one that is reoccurring. In order to change debt habits, learn about terms such as interest, credit, savings, retirement accounts, stocks and bonds. Understanding what created the debt can also help with future actions. One of the best first steps to getting out of debt is to create a strategy both for debt payments and future spending. Tracking all spending for a month can provide insight into potentially bad spending and saving habits. There are several resources, both public and private, that can help consumers create a realistic debt payment strategy.
  
  

Moving Forward

• Opening a savings account and contributing monthly can create a positive cash option. Purchasing bonds and stocks can allow first-hand experience with how money can grow or change. Budgeting is another way to help plan for current and future spending. If using a credit card makes spending easy, consider using only cash for purchases. Medical debt can provide needed attention for potential lifestyle changes or different insurance coverage.
  Most important is to be educated about debt. Learn how to use a credit card wisely. Research and compare credit or insurance options to learn what may work best. Most important for consumers impacted by debt issues is to learn to pay off credit charges each month or at least pay double the minimum payment due. Lifestyle changes may also need to occur in order to live within realistic financial boundaries.