Debt collection is a business like any other. Our goal is to make it too difficult and expensive for a debt collector to collect on your debt. Here are some tips to help get you started...
- Never take out a home equity loan to pay off credit cards. You'll turn unsecured debt, which is difficult to collect,
into secured debt, which is very easy.
- To get a debt collector to stop calling you, just send a simple letter - certified mail with return receipt - telling them to stop calling.
Third-party collectors are required by law to comply with your written request.
- You should always respond to a debt collector’s Dunning Letter with a verification and validation request. If the collector doesn’t respond in a timely or appropriate manner they are prohibited from collecting on the account, or reporting negatives to the credit bureaus.
Making the minimum payment on a $10K balance (the average balance of U.S. cardholders), at the annual interest rate of 17%, it would take you 39 years, 7 months to pay off.
You would pay $38,000 in interest alone, and a total of $41,835 for the privilege of charging $10,000!
