Debt Grows With the Weakening Economy

As the economy sinks deeper into a slump, Americans find it’s hard to get extra money to pay off their debt. And as the debt grows, many debtors are getting calls from debt collectors looking for payment.

In fact, the financial crisis doesn’t begin and end on the day after Thanksgiving only, but after the Christmas day also. The boldest Black Friday sales affected negatively on making payments on time which makes debts piling up rapidly.

The day after Thanksgiving is dubbed “Black Friday” because it traditionally marked the day of the year when retailers finally move out of the red, indicating losses, and into the black, representing profits.

Debt experts expect the number of debt will grow over time. That’s why it’s time to look around and see in which way we are spending. Christmas day will come soon and we should use the money in a proper manner.

Well, why debt has become harder to simply wipe away?!

Simply, debt has become harder to get rid of because of two reasons. First, the methods that collectors use have improved significantly and made the process more efficient. Second, because of the change in the bankruptcy law in 2005.

“It’s going to take time to see a real spike in collections,” said David Polino, Better Business Bureau president. And because of the national economic crisis, debtors that are behind on their payments will be forced into collections. As debtors have no extra money to pay their debts, the crisis will become harder.

But there is always a hope in sight; there are some collection agencies are increasingly turning to technology to help close the circle on delinquent debtors.

Now, it’s time to be more careful while you are going to deal with collectors agencies because not all of them follow the rules. Some of them are using embarrassing and harassing practices forcing you to make your payments. With a boom in collections, experts expect the number of complaints to increase as well.

The best way to protect yourself from those bad collectors is to know your rights such as:

- First, collection agencies are required by law to contact you and “verify the debt”.

- If a customer requests verification, a debt collector cannot continue to try to collect until verification is provided.

- No phone calls before 8:00 am and after 9:00 pm.

- No phone calls at debtors’ workplaces; collectors are only allowed to contact a consumer at home.

- A collector is unable to contact you if the debtors ask them to stop these harassing calls. In this case, debtors should send a written letter and keep a copy of it.

- If a debt collector wants debtors to dispute the debt, then that collector should notify the debtors of their right.

- Debtors have the right to hire an attorney to talk on behave of him/her. In this case, debt collectors should stop harassing calls and deal directly with that attorney.

All you have to do now to stop the farce is to know where your money is going before and after the Christmas day.

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