May 2006

Finding a way to get out of debt is extremely important and it is crucial to take action as soon as possible if your debt is significant. This daunting task may seem overwhelming, but it is quite possible if you take the appropriate steps. I am nearly out of debt and if you would have seen my financial obligations just a decade ago, you would be shocked to discover that everything is nearly paid off in full.

I got my very first credit card when I was in college. This is the worst time to acquire credit because you have your entire future in front of you and the prospects seem endless. I thought that I could rack up charges with no worry because I could always get out of debt in the future. After all I was sure to land a great job after graduation.

The credit cards kept coming. They came in very handy while I was a poor college student. In fact, I took out a hefty cash advance to pay tuition one semester. It seemed like a good idea at the time. I also could finally afford the trendiest fashions and accessories with the credit. No worries, I would get out of debt once I hit the work force.

The great job was more elusive than I imagined and by the time I was in the work force full time I had racked up quite a stack of bills. When I hit my mid-twenties, I knew that I desperately needed to get out of debt quickly. Unfortunately, there is no quick way to get out of debt. You have to consider that you didn't spend the money overnight, and you can't expect to pay it off overnight.

The good news is that there are steps you can take to get out of debt and it won't take nearly as long as you think. The first thing you need to do is take action. Don't wait another year or even another month. Once you decide that you need to make a plan, do it before your old habits overwhelm you.

Make sure that you pay off the credit cards that have the highest interest rate first. Never squeak by month after month paying the minimum. It will take decades to pay off high interest credit cards this way. Make a list of your debtors. Then start making a plan. This plan includes making phone calls. You would be surprised at how many creditors will take a payoff that is significantly less than your balance. Oh yes. And stop using your credit cards. This is one of the most important steps to get out of debt relatively quickly.

Posted by Mark at 12:52 AM | Permalink | Comments (0) | TrackBacks (0)

If you have ever been seriously late in paying a bill you may have had to deal with a collection agents. They can sometimes be pesky as they will send frequent letters and call repeatedly to your home or place where you work. The best thing to do to avoid being visited by collection agents is to pay your bills on time.

There is a set of rules which monitors the actions of collection agents which is called the Collection Agents Act. Any business that employs collection agents has to follow the guidelines of the Act. If that business does not follow the rules that are laid out by the Collection Agents Act they may have to give up their bond, have their collection license suspended or even cancelled, and can have their bond forfeited in order to pay compensation to those who had financial losses.

According to the Act people employed in this profession are prohibited from doing a variety of actions. The collection agents can not collect more money than what is owed or add any fees to the debt of the debtor. They can not make the debtor pay without giving the information to the debtor such as name of the creditor, the balance that the debtor owes, and the identity and authority of the party who makes the request for the payment. The collection agents can not use the telephone to call debtors before 8 in the morning or after 9 in the evening and can not call on Sundays and holidays. They are required to give information which is correct as not to mislead the person who they are trying to request payment from. A debtor's employer can only be contacted to verify that the debtor is employed or if payments that have been specified by court order in garnishing wages have been made. Agents also have no legal course of action as they can not send the debtor any documents that look like legal court documents.

Within the scope of their restrictions the agents can still get in touch with you by ways of phone, in person, or by mail. Sometimes in any of these instances the agent will do so many times until the debt is paid. It is their job to make sure that the debtor pays the bills from the company in which they are employed. Collection agents can be seen in a negative light considering they can be annoying at times contacting you many times but know that they are just employees of the company in which you owe the debt to. By paying your bills in a timely manner than you will not have to deal with collection agents.

Posted by Mark at 12:22 AM | Permalink | Comments (0) | TrackBacks (0)