Get Rid of Your Debts and the Debt Collectors

The vast majority of today's consumers have debt; unpaid debts are often sold or transferred to unscrupulous debt collectors. Debt collection abuse is common. That's why Congress passed the Fair Debt Collection Practices Act.

Deciding how to respond to a debt collector's call is critical to your financial health and credit score strength. If it isn't handled properly, you might pay too much, get sued in court, and if it's reported to consumer reporting agencies, it can dramatically drop your credit score, which can cause all kinds of problems:

• Lower credit scores

• Loss of employment opportunities

• Denial of credit, including home loan

• Denial of utilities or rental agreement

• Higher insurance premiums

• Higher interest rates on loans