Steve wrote to me through the GetOutOfDebt.org site and asked the following question. If you have a credit or debt question you’d like to ask just use the online form. I’m happy to help you totally for free.
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“Dear Steve,
I got fired from my job because of downsizing in about April. It was a commission-only job and they were paying me a stipend of only $400.00 a month. That was sufficient to pay all my bills and remain on time. I graduated college about 8 months prior to taking this position.
I was fired. No more checks or possibility to bring home a check any longer. I am now about two months late with my credit card payments and the bill collectors continue to call me. Yesterday I received 6 calls in the span of 2 minutes from one collection agency.
I’ve actively looked for employment and still am looking. I want to just get a deferment on payments until I get back on track. I can’t even afford to leave my house for work any more because times are that bad here in NYC. I don’t owe much. Just 2100 to one bank and about 1500 to the other. I feel if I can just get them to stop calling me from 8AM to 9PM relentlessly I can get some room to breath. Any way I can legally ask them to stop calling me? I know I can write them a letter and tell them to correspond with me via mail ONLY but then they would probably sue me and garnish wages and put liens on my future “earnings.” I want to deal with this mess very efficiently and I need some advice on what to do.
Steve”
The Answer:
Dear Steve,
If the people calling don’t work for the original creditor and they instead work for an outside collection company, you could send them a cease and desist letter telling not to contact you again.
I think that’s a foolish thing to do right now. Here’s why.
When you tell the collector to not communicate with you it can move your case up to the head of the queue to get sued. Rather than flow in an orderly manner through collections you’ve just told them that is not for you. You don’t want to be contacted. Next step, court.
Instead, I’d rather see you play the collectors at their own game and let them call. If you are 30 days behind and do nothing, you will have another 120 days before they will probably take you to court for non-payment. At 180 days delinquent you account will charge off and be bought by some bad debt buyer. They will begin to collect all over again.
What I would suggest doing is drawing a line in the sand, say 90 days from now, until then either speak in a friendly tone to the collectors or don’t answer the phone. Let their calls buy you more time.
If you just can’t stand the calls emotionally, read How to Hide From Debt Collection, the Debt Collector, and Creditors.
Please keep me posted on what you decide to do, by coming back here and adding a comment. If you can’t find a job or income in 90 days, let me know and I’ll give you a Plan B to act on.
