Court Summons For Credit Card Debt - 5 Tips For Dealing With Those Dreaded Collection Agencies!

Does the thought of a debt collector calling about an unpaid loan or other debt freak you out? You are not alone. This is definitely one of the most dreaded things for everybody. The good news is that there are ways of dealing with this situation. Follow these strategies and free yourself from this misery:

1) Prevent the collection

In this case (as most other cases) prevention is better than the cure. Work with the original creditor and iron out a payment arrangement that works for both of you. This negotiation should be done before your account is passed onto a debt collection agency.

2) Ignorance is NOT bliss

Don't neglect calls or letters from the collection agency. By law, you can send requests for verification within 30 days of being contacted. Don't waste time even if the debt is not yours. The agency can put place negative information on your credit report. This could haunt you for years to come. Deal with the problem.

3) Maintain copies of all correspondence

You never know when you'll need a document for verification purposes. Keep your tax documents, copies of payments in a safe place. You never know when you might be asked to provide proof of payment or settlement. The collectors can come after you way into the future. The best way to protect yourself is to have proof.

4) Get a lawyer

Get a consumer lawyer especially if you have been served with a lawsuit notice. If you lose a lawsuit you could have your wages garnished. Sometimes the lawsuit is filed with little proof of the debt. The easiest way to lose a court case is by not showing up. The best way to have the lawsuit dismissed is by showing up and have a lawyer representing you.

5) Fix the problem

There is a reason why you ended up here in the first place. Get to the root of the problem. Fix your spending habits and be aware of how money is flowing in and out of your wallet. Ideally, seek an accredited counseling agency to help you figure out a payment plan. The National Foundation for Credit Counseling and the Association of Independent Consumer Credit Counseling Agencies are two accredited agencies that will work with you. Avoid the for-profit credit repair companies if you can.