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Tips for handling credit card debt collection efforts

For Michigan consumers who are burdened with high levels of debt, dealing with aggressive collections efforts can add an extra layer of stress on an already difficult situation. However, there are steps that can be taken to ease the process of credit card debt collection. By implementing the following strategies, consumers can gain control of the debt collection game and work toward a viable solution.

First things first: one should initially establish that the debt collector has the right to pursue collection of the debt in question. This involves completing research to determine the statute of limitations on credit card debt. In cases in which that timeframe has elapsed, a debt collector has no legal right to sue for debt recovery. Collectors will continue to pursue payment on such accounts, because if a borrower makes a payment or agrees to a repayment plan, he or she effectively resets the clock on the statute of limitations.

Organization is also key to success in handling debt collection efforts. Being able to challenge the validity of an account requires that you have access to the paperwork associated with that debt. In many cases, simply asking for a debt verification letter will result in the end of collections efforts, since many purchasers of old debt do not have the proper paperwork needed to pursue the debt in court.

By tackling the issue of credit card debt collection head-on, it is possible to gain control over the process and gain positive momentum. However, for some Michigan consumers, debt levels are such that repayment is simply not an option. In these cases, the best method of debt relief involves researching all available options, including filing for personal bankruptcy.

Source: Huffington Post, "9 Ways to Successfully Handle Debt Collectors," Tiffany Aliche, April 4, 2013

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