How to Deal With Creditors

a young woman stressed while working on her financial issues

From an unexpected job loss to a medical emergency, it can be easy to fall behind on paying your bills.

It can be incredibly frustrating and overwhelming when you receive continuous collection calls from impatient creditors. If a debt collector is calling you about the money you owe them, the last thing you probably want to do is talk to them. Whether you answer the call or refuse any contact, the reality is that you’re still in debt.

What many people don’t realize is that they still have certain rights protecting them against harassment from creditors. There are specific ground rules set by the government regarding how debt collectors must behave.

It’s important to know your rights and how to deal with the collectors so that you can make an effective plan to deal with your debt.


What Are Your Rights When Dealing With Creditors?an older man who is in debt on the phone with a creditor looking stressed

While creditors are entitled to contact you, whether through email, letter, or phone call, they must act within the law when pursuing a debt.

Calls at inappropriate times, threats of violence, and providing misinformation all count as harassment, in which case legal action can be taken. Knowing what laws protect you is incredibly important and will help spot when creditors violate your rights.

Being in debt can make you feel vulnerable, which some creditors may use to their advantage. Collection agencies are not allowed to threaten you with arrest, jail time, or property liens. They’re also prohibited from contacting family, friends, and coworkers and showing up at your house without sending you a notice.

It’s not always easy keeping track of your debt and how much you’ve already paid, which is why you should be able to request an account statement from your creditors. You’re also entitled to receive validation information, which includes things like how much you owe, and to whom the original debt was owed.


Tips on Dealing With Debt Collectors

Up until the full amount of your debt is paid, you will continue to receive collection calls.

Although ignoring your creditors may be the easiest way to avoid them, it can cause further damage to your credit score and report. Instead, answer the calls and get information about the debt by asking who the original creditor was and the debt amount.

Remember, the more details you can get, the better, as it’ll help you create a stronger debt repayment plan. Debt collectors are required to send you a letter detailing how much you owe and to whom. It’s best to request a verification letter so that you have everything documented just in case.

Finally, try to avoid excessive talking on the phone. Be careful not to share personal information and how you plan to pay off your debt.


Get Your Debt Under Control With Lazard & Associates

a young couple working with a licensed insolvency trustee

If you’re worried about your debts and are being hounded by relentless collection agencies, it might be time to seek financial counselling.

Depending on the amount of debt you owe, certain debt-relieving solutions can help you get back on your feet. Our Insolvency experts are here to help you reestablish your credit, pay off your debt, and avoid bankruptcy.

Reach out to us to learn more about our debt solutions and book your consultation today.