When controlled properly, debt is a valuable tool. Loans allow us to buy houses, cars, and educations. Lines of credit make spending more convenient. And payment plans save us from having to dealing with major expenses, such as out-of-pocket medical costs.
Debt relief is any strategy you take to get out of debt or to manage your debt so that you can function normally and keep up with your bills and living expenses.
It usually refers to situations in which your debt has become too overwhelming to manage on your own.
Debt relief includes debt management plans, debt elimination programs, debt consolidation, and debt settlement. It also refers to bankruptcy, although that is perhaps the most extreme method you can use.
In many cases, all companies offering debt relief options are referred to as the debt relief industry. Learn more about each option so that you can make an educated decision about the best debt relief method for your lifestyle and situation. Each one comes with different pros and cons. By weighing each choice individually, you can find the perfect fit to help alleviate your personal debt.
The Verizon bill that you’ve been ignoring has now gone into collections and the calls are flooding in. What now?
It depends on how long the account has been in collections and if they’ve reported it to the credit bureaus. If the account was recently sent to collections, the good news is you can resolve the issue without a ton of effort.
In this case, your credit score won’t take a dive. But if it was already reported, you’ll have to do a bit more legwork to the entry removed from your credit report.
The Fair Debt Collection Practices Act (FDCPA) is a law originally passed in 1978 in order to protect consumers and regulate the tactics that can be used to by debt collectors. If you have had collection agencies hounding you over a debt, it is imperative that you know what you rights are as outlined in the FDCPA.
The FDCPA is what you will be using to protect you against collection agencies and their shady, illegal debt collection tactics and allow you to fight back against them. It is your best weapon to get collection agencies out of your life and collection accounts off of your credit report. It is also what allows you to sue them in small claims court for violating your consumer rights.