Debt Consolidation – Avoiding Collections and Courtrooms

Debt is a stressful burden for anyone, but the way you manage it will determine how quickly you can resolve your credit problems. Know your options and your rights to avoid collection agencies and court appearances. While you’re in the process of resolving your debt, keep careful tabs on your finances and don’t spend any money unnecessarily. Also, don’t neglect payments when they are due, as this can land you in court.

When you don’t make your debt payments, you face the possibility of lawsuits, liens, legal fees, or other penalties, so it’s best not to let your financial situation get to that point. A few options to consider include debt consolidation, combined loans, and, in extreme cases, selling your home.

Only your individual situation will determine which of the aforementioned measures will work best for you. A combined loan can result in a lower interest rate and monthly payment. Debt consolidation can sometimes be worked into a mortgage agreement, but as unsettling as the thought of selling your home might be, it might be something to consider if you’re still making payments, on it and the other two solutions aren’t plausible.

Know your rights when it comes to collection agencies. Many of these companies will do everything within their rights to get their money. Sometimes they even resort to illegal measures in an effort to collect the money owed to them. They might send their own personnel impersonating law enforcement officers to your home to intimidate you into paying up. Another point to know about your rights with creditors is that they can only call you between certain hours. They also cannot threaten to take you to court.

Keep the upper hand legally, and address your credit problems before someone else resorts to illegal tactics in an effort to get you to pay your debt. When you explore your options, you can get a step closer to repairing your credit, and at the same time, avoid collection agencies and subpoenas.

Although you might not have the means to pay the amount your creditors are demanding, you should not neglect your debt to the point that your accounts are sent to collections. In severe cases, you can even be subpoenaed to show up in court. Even if you are ordered to appear in court, look into debt consolidation options so that the court realizes you’ve been actively trying to resolve your debt problems. Neglecting these responsibilities will reflect poorly on you when you appear in court, so the best thing to do is try everything in your power to ensure that your debt problems never get to that point.