If you’ve ever been behind in paying your bills and they’ve been turned over to a debt collector, you can relate to how stressful it can be. There are certain things the debt collectors can and cannot do that you should know about.

The Fair Debt Collection Practices Act, enforced by the Federal Trade Commission, prohibits debt collectors from using false or misleading statements, harassing or abusive conduct or any unfair methods to collect debts.  They cannot make false threats to coerce payment or use deceptive collection notices that falsely appear to be from an attorney or a court.  In addition, they cannot engage in any sort of harassment, such as threatening violence, using profanity and obscenities, or making continuous phone calls.

What this means for you

Personal, family, and household debts are covered under this Act.  You may be contacted in person, by mail, over the phone, or by telegram or fax.  Debt collectors may not contact you before 8 a.m. or after 9 p.m., unless you agree.  Also, they cannot contact you at work if they know it is unacceptable to your employer.  To stop the calls or contact altogether, you can send a letter telling them to stop.  However, they can contact your attorney if you have one.  They can also contact other third parties one time to find out where you live, your phone number, and where you work.  Remember to keep a detailed record of all conversations and other contact. 

Knowing your rights can help alleviate some of the stress.  If you believe a debt collector has gone overboard and treated you unfairly, you can report the problem to your state Attorney General’s office and the Federal Trade Commission.

For more detailed information, please visit: www.ftc.gov.

About Christian Credit Counselors:

Christian Credit Counselors is a national, non-profit organization dedicated to helping consumers achieve financial wellness through counseling and education. Established in 1994, Christian Credit Counselors has provided Christian credit counseling to over two million individuals nationwide. Christian Credit Counselors is one of the top members of the American Association of Debt Management Organizations (AADMO), Christian Credit Counselors provides personalized and confidential consultations in person, by phone or online. Visit Christian Credit Counselors or call 800-557-1985.

Typically, debt doesn’t just happen overnight.  In most cases, it’s the result of consistent bad spending practices.  The sooner you recognize these practices, the better off you’ll be.  Here are some practices that should raise the red flag:

1. Spending more money than you make.  It’s so easy to do this.  You may not even realize it until it’s too late.  You might be dipping into your savings here and there, thinking it’s just a little bit, or borrowing from friends and using credit cards.  Eventually, your savings will be gone, your friends will be tired of lending you cash, and your credit cards will be maxed out.
2. Relying on money you don’t even have.  Using credit cards and loans to pay bills and make other purchases is a recipe for disaster.  Your paycheck doesn’t even make a dent in what you need every month, but you’re o.k. with it because you have a system that you’ve worked out with your credit cards.  This will catch up with you very quickly if you can’t pay off your credit card bill each month.
3. Using credit cards for everyday purchases.  Paying for groceries, gas, entertainment, and clothing with credit is a sure way to get into trouble.  You may rationalize that it’s just more convenient, you get points on your card, and you’ll pay it off when you get the bill, but it takes a lot of organization and control to budget your money this way.  More often than not, it doesn’t work out and you can’t pay off your bill each month.
4. Using credit cards when you have cash.  A habit like this inevitability leads to debt.  Having the mindset of wanting something, but not wanting to pay for it will contribute to debt accumulation because you still won’t want to pay for it when you get your bill.  Getting into the habit of using cash will help you be more discriminating in your purchases as well as distinguish between a want and a need.
5. Using credit to pay off other debt.  Sound familiar?  Shuffling debt around from one credit card to another only increases your debt each time and puts off the idea of actually facing your financial problems.  This behavior can cause a lot of stress too.

Recognizing these spending habits and avoiding them can help you steer clear of the road to debt.

About Christian Credit Counselors:

Christian Credit Counselors is a national, non-profit organization dedicated to helping consumers achieve financial wellness through counseling and education. Established in 1994, Christian Credit Counselors has provided Christian credit counseling to over two million individuals nationwide. Christian Credit Counselors is one of the top members of the American Association of Debt Management Organizations (AADMO), Christian Credit Counselors provides personalized and confidential consultations in person, by phone or online. Visit Christian Credit Counselors or call 800-557-1985.