QandAs: Loans

I have Collection Agencies Calling Me, How Can I Pay these Debts Off?

Answer:
The first step is to acknowledge any debts you owe.

Write everything down on paper – it’s time to make a budget.

Determine your living expenses and your debt. List your debts from the smallest to largest balance or from the highest interest rate to the lowest one. Consider that it may be faster to see progress paying off your $200 department store credit card at 12% than paying off your $2000 Visa card at 21%. You’ll need to cut spending wherever you can and consider a part-time job to help you pay off your debts.

The Fair Debt Collection Practices Act requires debt collectors provide fair treatment and prohibits certain types of debt collection. When working with a collector, don’t make agreements you can’t keep. If the agency offers to settle a debt, request this information be sent to you in writing before you agree.

By sticking to your budget, you’ll soon be off the phone with collectors and on your way to a debt-free life.