Even if you didn't know that you had outstanding debt, you may have gotten the dreaded call from a debt collector. When you get that phone call during supper time, or get that dreaded notice in your mailbox, emotions will run high. The first step is always the same: remain calm. You still have several options moving forward. You also have rights that you should know about in the months coming.
The first thing you should know is your rights. A debt collector is not legally permitted to contact you after 9pm. They also have to provide you written notice of your debts. You should always begin by asking for written proof of you debts. This is also necessary to avoid being scammed by people posing as creditors.
Next you should know bankruptcy is never the only option; there is always a bankruptcy alternative. You should carefully research all of the options before making any decisions. Some of these will be described later in the article, but many others exist. However, you should always make sure that you are dealing with a reputable provider.
Debt management is the first set of strategies that you should consider. Although it may seem like your debt is already overwhelming, this strategy may be right for you. Rebudgeting your income and paying down your debt over time will be the easiest on your credit long-term.
The next thing you should do is work with your bank and your debtors to create a debt payment plan. If you try to avoid this step, they may do it without you. Nothing is worse than having your wages garnished. It's also worse for your credit if you don't come up with a voluntary debt payment plan.
If your debt is really worse than you can manage, then you may have to seek a more drastic form of debt relief. Beware: this is going to ruin your credit for the next seven years. A debt settlement is just as bad on that front as declaring bankruptcy. But if there are no other options, make sure you choose a good plan from a reputable provider.
If you've made it this far, then you're probably going to be okay. What you really have to do now is be patient, own up to your debts, and wait it out. You'll make it through this. Even if you have to declare bankruptcy, it's not the worst thing in the world, and it will be off your record in a few years.
The first thing you should know is your rights. A debt collector is not legally permitted to contact you after 9pm. They also have to provide you written notice of your debts. You should always begin by asking for written proof of you debts. This is also necessary to avoid being scammed by people posing as creditors.
Next you should know bankruptcy is never the only option; there is always a bankruptcy alternative. You should carefully research all of the options before making any decisions. Some of these will be described later in the article, but many others exist. However, you should always make sure that you are dealing with a reputable provider.
Debt management is the first set of strategies that you should consider. Although it may seem like your debt is already overwhelming, this strategy may be right for you. Rebudgeting your income and paying down your debt over time will be the easiest on your credit long-term.
The next thing you should do is work with your bank and your debtors to create a debt payment plan. If you try to avoid this step, they may do it without you. Nothing is worse than having your wages garnished. It's also worse for your credit if you don't come up with a voluntary debt payment plan.
If your debt is really worse than you can manage, then you may have to seek a more drastic form of debt relief. Beware: this is going to ruin your credit for the next seven years. A debt settlement is just as bad on that front as declaring bankruptcy. But if there are no other options, make sure you choose a good plan from a reputable provider.
If you've made it this far, then you're probably going to be okay. What you really have to do now is be patient, own up to your debts, and wait it out. You'll make it through this. Even if you have to declare bankruptcy, it's not the worst thing in the world, and it will be off your record in a few years.
About the Author:
Warning! If you're struggling with a large amount of debt, you need the best possible information about Debt Management. Dealing with Credit Collection Agencys can be extremely stressful, so make sure you equip yourself and work with a reputable company.
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