Most of us use debt. Unfortunately, it can cause serious stress in our lives, especially when there’s been a loss of employment or health issues.
In those circumstances, credit cards, payday loans, and even some auto loans can become difficult to manage. When debt collectors start calling it only gets worse.
Debt collectors are in the business of using fear and other emotion to motivate you to make payments. Regardless of what it means to you or the well-being of your family.
Before we dive in, if you’re struggling with debt and debt collectors and want help reviewing your options you can with a financial coach. Click here to schedule a 15-minute call with a financial coach. The 15min call is free.
The best way to tackle both problems is by facing them head-on. By creating a plan and taking control of the situation you will not be resistant to a debt collector’s emotional tactics.
This may be difficult to do when you look at your situation. You may even have debt collectors calling and threatening lawsuits, arrest, repossessions, etc. You can do this.
Start by separating yourself from any emotion and fear. The best way I know to do this is to view the situation as if it were not yours. Pretend you are just helping a friend and follow these priorities.
QUESTION: Will making less than the minimum payment hurt your credit? Yes, you bet. But it would be silly to have your credit cards current and no money to put food on the table, right? I agree.
Debt collectors will try to set the priorities for you by using scare tactics. If you’re going through this, do not get emotional. Just work your plan, not theirs. You’ll have more confidence in your conversations with them if you know your rights. Find out more by reading about the Fair Debt Collection Practices Act.
If you believe you could benefit from reviewing your situation with a financial coach you can get started below.
Click here to schedule a 15-minute call with a financial coach. The 15min call is free.