Many debt collectors don’t have mercy when they ask debtors to pay their debts. If you have faced a financial problem that prevent you to pay your debts, then debt collectors may call you many times or send police to your workplace which leads to lose you your job.

Sometimes they may turn your life into hill as they make 5-6 harassing phone calls a day, using threats and vulgar language to force you to pay your overdue bills and loans.

Debt collectors have a blind heart when they collect debts. The reason is unknown till now, but all we can say is that those people have closed eyes because of the greed of collecting more than what debtors are owed.

That doesn’t mean that all debt collectors resort to using illegal tactics. Some of them negotiate with you till finding the best deal that works for you both.

In spite of that, we should figure out how to fight back against unethical collectors as many debtors don’t know their rights which allow collectors to take advantages of that fact.

Complaints about debt collection agencies are on the rise and we should stop them. Here are some basic rights:

1. A debt collector MUST communicate with your attorney first. If not, he should take a permission to call you at home.
2. No phone calls at home before 8 a.m. or after 9 p.m.
3. No phone calls at your workplace.
4. You have the right to stop them calling you by telling them and sending a letter as well to confirm your request. Remember, the law gives you that right so don’t waste it.
5. Never let them use a threatening or vulgar language. If they do, contact the police immediately. That’s why recording a phone call is very important and you should notice them that you do that.
6. It’s illegal to enter your home to resize it or put a lien on your property.
7. Keep in mind that there is a limit to how long debt collectors can legally collect your debt. This limit is called “the statute of limitations” that may range from three to 15 years.

The bottom line here is that if you owe money, you should put in more effort to pay off the debt. Don’t be coerced into paying a debt you don’t owe.

First, who is a debt collector? A person working in a collection agency to track down debtors and get them to pay what they owe. Debt collectors often use scare tactics, humiliation and repeated phone calls to extract payments or promises to pay.

After knowing who we may deal with, we will be able to know HOW to deal with them in a good manner without falling into more troubles because of not paying our overdue debts and loans.

Be realistic! If you owe someone money, you may resort to a collection agency to collect your money from debtors who don’t pay on time. Is that right?! Similarly, your creditors may do the same if you delay your monthly payment.

Thus, if these people contact or visit you, you need to know how to deal with them, and what your rights and obligations are. To get closer to the picture, debt collectors aren’t court officials and don’t have the power to enter your home or seize your possessions.

Here are your rights while dealing with one of those debt collectors:

1. If a collector harasses you, you should contact your local council’s trading standards department. If they threaten you physically, contact the police.
2. If they come to your home to resize it, don’t let them in. They don’t have the power to force you to let them enter. If they push the door or prevent you closing it, such action would make the whole process illegal.
3. If they accept any payment from you, you’ll need to make sure you get a receipt. In this case, ask for their fees and expenses of each extra visit that may be added to the debt you owe.

Here are their rights:

-        They can take only non-essential items such as your television or take possessions outside your home such as your car or garden equipment. They cannot take essentials such as clothing, bedding, cookers, or tools of your trade and business.

-        If you’re behind with your rent or mortgage payments and your mortgage lender has got a County Court possession order to evict you, debt collectors are allowed to break into your home.

Dealing with debt collectors is very complicated, so that you should seek help and advice from reputed competent authorities.

It’s wise to understand everything about interest rate and how it works before getting involved with a high debt. Give yourself the time you need in order to understand it very well.

Understanding what interest rate is and how it works is good to know especially for the young who may be a victim because of the lack of knowledge.

What’s interest rate? It is the cost of borrowing money expressed as a percentage rate, often annually for the use of the Lenders funds. Interest rate can also expressed as a periodically percentage added to the total outstanding balance as a type of fee for the privilege of using the money.

It is CHARGED when the money is being borrowed, and PAID when it is being loaned.

Before thinking about taking a personal loan, credit cards, mortgages, utility bills, medical bills, or a business loan, it is important to understand how interest and interest rates work.

For all students, there are three options are available to be charged with interest rates which are:

1) Full Deferral: Interest rate payment will begin 6 months after graduation. Interest will continue to accrue during the deferment period and will be added to the loan balance.

2) Interest Only: Pay only accrued interest while enrolled in school (up to four consecutive years). Payment of interest will begin 45 days after graduation.

3) Immediate Repayment: Payment of interest will begin 45 days after loan is disbursed.

So how interest rate works? The answer for that question depends on which debt we have. The interest rate may be calculated differently as debts vary too. Interest rates are also determined by the relationship between the supply of money and the demands of borrowers.

It is wise to question the rates that you are being charged on anything you charge or borrow. Interest rate doesn’t affect the person’s life only, but slows the economy down also.

What’s a credit card? A credit card is a financial instrument, which can be used more than once to buy products on credit instead of cash. It’s also called charge card or plastic card.

A plastic card issued by a bank or business authorizing at a specific interest rate. Users are limited in how much they can charge, but they are not required to repay the full amount each month.

That is, a credit card is different from a debit card in that it does not remove money from the user’s account after every transaction.

Are credit cards very useful nowadays? Absolutely right as they can be used ONLY for:

- Emergencies.

- Unexpected incidents.

- Or for purchases when cash is not available.

Can you pay the card down to a zero balance? A credit card makes it possible for consumers to revolve their balance by making minimum payments but with interest charges compounded daily.

The question that most people are asking recently: Are more people in credit card debt nowadays?

Not just more people, but the entire USA government. There is a study showed that over 40% of people owe over $40,000 in credit card debt. The real reason for that is the high interest rate that creates a never ending cycle of debt and bank profit.

What are the common mistakes leading to high credit debt?

- Dealing with bad credits that affect your credit score report.

- Not knowing the interest rate.

- Spend more than you make by buying things that you don’t need.

- Creating new credit cards without managing your finances.

- Choosing the wrong card.

- Paying only the minimum.

- Not reading the fine print.

- Paying late.

- Get credit cards that you can’t afford.

- Depending on credit cards more than cash.

How can we avoid credit card debt?

- Choose the right credit card that meets your needs and your current financial situation.

- Avoid bad credits.

- Know your interest rate.

- Put a limit to your spending habits and avoid extra expenses.

- Determine your monthly income and needed expenses so that you will be able to manage your finances.

- Pay on time.

To help keep you on track, set goals and put motivators in place!