The Center For Debt Management
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How to Deal With Your Creditors
When You Are Out of Work?

It's become an all-too-familiar headline and lead story — job cuts, corporate restructuring, dot.com failures and lay-offs.

If you've recently lost your job, your first thoughts may be, "how will I make ends meet." Money matters are a source of stress and frustration for many people. Here are some of your rights when it comes to fair debt collection and credit reporting practices.

Fair Debt Collection

If you find that you can't pay your bills on time, you should contact your creditors immediately. Try to work out a modified payment plan that reduces your payments to a more manageable level. Don't wait until your accounts have been turned over to a debt collector. At that point, your creditors have given up on you. The federal Fair Debt Collection Practices Act requires debt collectors to treat you fairly by prohibiting certain methods of debt collection.

Fair Credit Reporting

Non-payment and late payments may affect your credit rating and your ability to get credit in the future. Although creditors usually consider a number of factors in deciding whether to grant credit, most creditors rely heavily on your credit history. That's one reason it's important to make sure your credit report is accurate. For example, if your file showed that you were once late in making payments, but didn't show that you are no longer delinquent, it would be inaccurate. The credit reporting agency must show that your payments now are current.

The Fair Credit Reporting Act protects you by requiring credit bureaus to furnish correct and complete information to businesses to use in evaluating your applications for credit, insurance or a job.

Debt Management Programs

If you find that you are not able to make your regular payments and there is no likelihood that your situation will improve in the near future, you truly need to consider your options. Enrollment in a Consumer Credit Counseling Services's Debt Management Program may be a great option to get your finances back under control. The program typically lowers payments and reduces interest, and in most cases, will re-age past due accounts bringing them current. This not only helps to reduce derogatory information from being placed on your credit report, but also will eliminate past due fees — which can easily mount to thousands of dollars over time.

Debt Settlement Plans

If you are seriously deep in debt to the point where you believe that bankruptcy is your only way out, you should first consider placing your debts in a debt settlement plan. These programs are different than a debt management program. In these plans, as you accumulate the necessary funds, your debts are actually negotiated for a lesser pay-off amount, typically 45% of the amount owed. If you owe the creditor $1,000.00, you may be able to settle it for only $450.00, for example. This can dramatically resolve your financial troubles and save you from having to file for bankruptcy.


The Center For Debt Management suggest that you take preemptive steps and act as soon as possible. Do not wait until bankruptcy is your only alternative. Call 1800 DEBT.COM (that's 1800-332-8266) for a free debt consultation. There is no obligation and the conversation is confidential. Do yourself and your family a favor and call now!

Need to Get Out of Debt! — Call Right Now — 1800 DEBT.COM


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