When dealing with debt collectors, you have plenty of rights, thanks to the Fair Debt Collection Practices Act. Here are six things to know when a third-party debt collector contacts you.
Get the information in writing. Within five days of contacting you, a collector must send you a written notice telling you the amount of money you owe, the name of the creditor and what action to take if you believe you don't owe the money, according to the debt collection act.
So before engaging in chitchat with a debt collector, ask him or her to send you the information in writing.
5 debt settlement do's and don'ts www.bankrate.com
Debt settlement, or agreeing to pay a creditor less than you owe, should be avoided, if possible. It's a huge mark against your credit score, and the fees and taxes you pay as a result of the settlement may offset what you save by paring down the debt.
A less-drastic measure such as debt management may resolve your dilemma. That's why it's important to get credit counseling as soon as you see the warning signs: Your income is too low to keep up with your debt or you're borrowing from one creditor to pay another. READ MORE
