Managing Debt For Dummies
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A call from a debt collector can be intimidating to say the least. The following tips will help you stay in control and calmly handle a debt collector so you avoid saying something that could create more problems. Keep this list close to your phone so you're ready when you get a call from a debt collector:

  • Never engage in casual conversation with a debt collector. You may give the debt collector information that could be used against you.

  • Don't answer any questions that you don't want to answer, and never share personal or financial information. Don't give a debt collector your Social Security number, the name of your bank, or your bank account number.

  • Ask the debt collector to send you a written accounting of exactly how much you owe. Ask that the accounting itemize the original amount of the debt plus all interest, fees, and collection costs.

  • If you think that the amount the debt collector says you owe is incorrect, or if you do not agree that you owe any money, dispute it. However, don't expect to win this argument on the phone. Put your dispute in writing and send it to the debt collector no later than 30 days after the collector contacts you for the first time.

  • If you don't have the money to pay the debt, just say so, and tell the debt collector not to call you again. Send a certified letter making the same request as a follow-up. Your debt won't go away, but the debt collector should stop bothering you.

  • If you agree that you owe a debt, but you can't afford to pay it in a lump sum, try working out an affordable payment plan. This process can start on the phone, but be sure to get the terms of any agreement you reach in writing before you make your first payment. Another option is to settle the debt for less than what you owe on it. Don't ever agree to pay more than you can afford!

  • If a debt collector threatens you, is verbally abusive, uses profane language, or calls you repeatedly during one day or day after day, take notes. The debt collector is violating federal law with these actions. Write down each violation, including the date and time it happens, the name of the debt collector or debt collection agency, and the specific debt you are contacted about. If things get really bad, share your information with a consumer law attorney: You may have grounds for a lawsuit.

About This Article

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About the book authors:

John Ventura: John is a best-selling author and a nationally boardcertified bankruptcy attorney. He is also an adjunct professor at the University of Houston Law School and the director of the Texas Consumer Complaint Center at the Law School.
As a young boy, John dreamed of becoming a Catholic priest so he could help everyday people, and he spent his high school years in a Catholic seminary. After graduating, however, John decided to achieve his dream by combining journalism with the law. Therefore, he earned an undergraduate degree in journalism and a law degree from the University of Houston Law School. Later, he and a partner established a law firm in Texas, building it into one of the most successful consumer bankruptcy firms in the state. He subsequently began a successful consumer law firm in South Texas.
Today, as Director of the Texas Consumer Complaint Center, he supervises law students as they help consumers with their legal problems. He is also a regular speaker at law conferences around the country and serves on the Bankruptcy Council for the Texas Bar Association.
John is the author of 13 books on consumer and small business legal matters, including Law For Dummies, 2nd edition; The Everyday Law Kit For Dummies; Divorce For Dummies, 2nd edition; and Good Advice for a Bad Economy (Berkeley Books). John has been interviewed about consumer money matters by numerous national media including CNN, NBC, NPR, Bloomberg Television & Radio, The Wall Street Journal, USA Today, Newsweek, Kiplinger’s Personal Finance, Money, Inc. Martha Stewart’s Living, Bottomline, Entrepreneur, Bankrate.com, CBSMarketWatch.com, and MSNMoney.com. In addition, his comments and advice have appeared in major newspapers around the country, and he has been a frequent guest on local radio programs.

Mary Reed: Mary Reed is a personal finance writer who has coauthored or ghostwritten numerous books on topics related to consumer money matters and legal rights. The books she has coauthored with John Ventura include The Everyday Law Kit for Dummies, Divorce For Dummies, and Good Advice for a Bad Economy (Berkeley Books). Mary has also written for the magazines Good Housekeeping, Home Office Computing, and Small Business Computing, and she has ghostwritten numerous articles that have appeared in national and local publications.
Mary is also the owner of Mary Reed Public Relations (MR•PR), an Austin, Texas-based firm that provides public relations services to a wide variety of clients, including authors, publishers, attorneys, financial planners, healthcare professionals, retailers, hotels, restaurants, and nonprofits.
Prior to starting her public relations business and writing career 20 years ago, she was vice president of marketing for a national market research firm, marketing director for a women’s healthcare organization, and public relations manager for Texas Monthly, a national award-winning magazine. She received her MBA from Boston University and her BA from Trinity University in Washington, DC.
In her free time, Mary serves on the board of a community development corporation in her neighborhood. She also enjoys long morning bike rides, road trips with her husband, gardening, working her way through the stack of books by her bed, taking care of her six cats, and spending time with her family and many friends.

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