Are you getting pressure from your credit card suppliers?  Are you struggling to meet the monthly repayments? Are high interest rates making it  impossible for you to reduce your balance?  These can all induce stress, but don’t panic.  Here are a few tips to take it one step a time.

• Your first port of call is to contact your creditors immediately if you are having trouble making the ends meet or paying off the debt even the minimum amount.  It is in their interest to get their money back, so they should be open to negotiation.
• There are companies who will help you to consolidate your loans and negotiate affordable repayments to your creditors on your behalf.  However, watch out for credit repair scam.  Here are a few tips on avoiding unscrupulous companies: http://www.ftc.gov/bcp/edu/pubs/consumer/alerts/alt097.shtm
• Try to work out a modified payment plan that reduces your payments to a more manageable level.
• Remember, be proactive!  Don’t wait until your accounts have been turned over to a debt collector.   Often it is much easier to deal with the credit card company than to deal with the debt collectors.

However, if you DO have to deal with debt collector, you are protected by the Fair Debt Collection Practices Act. You do have civil rights when it comes to debt collection.  It is a federal law that dictates how and when a debt collector may contact you.  Debt collector may not call you before 8 a.m., after 9 p.m., or while you’re at work if the collector knows that your employer doesn’t approve of the calls. Collectors may not harass you, lie, or use unfair practices when they try to collect a debt. And they must honor a written request from you to stop further contact. Make sure you know your rights!