YOUR MONEY Paying Off Old Debts Can Help You Save Money a good news. That’s because work- Soo *“* af debt collector can actually bring Ze ing with a debt collector to resolve a financial problem may help your credit and save you money. For many, the thought of being contacted by a debt collector about a past-due bill or unpaid debt can cause anger or panic. However, ee (NAPSA)—While some might find it surprising, a call from a hanging up or asking not to be contacted again doesn’t solve the problem. “It’s not your father’s debt col- lector,” said Gary Rippentrop, CEO of ACA International, the Associa- tion of Credit and Collection Pro- fessionals, which sets a strict code of ethics for its member agencies. “Nowadays, the majority of debt collectors are well-trained, sophisticated professionals willing to work with you to pay off your Creating a monthly budget and paying down your existing balances can help you get your finances undercontrol. immediately in writing.If the first communication is by phone, the collector must send a written noti- fication within five working days. Once an initial contact has been debts, allowing you to avoid finan- made, you have 30 days to dispute the debt; otherwise, it will be terhouseCoopers study, last year, Ask about options and programs: If you are having financial cial challenges in the future.” According to a recent Pricewa- collectors recovered $49 billion in delinquent debt. As a result, busi- nesses were not forced to raise prices to cover their losses, saving the average American household $351. Added Rippentrop, “When called about an unpaid bill, the most important thing to do is communicate, not panic.” Whendebts such ascredit card and cell phone bills pile up, there are a few important steps you must take to deal with debt re- sponsibly. If you are contacted by a collector: Don’t avoid the call: If you have questions or want to dispute the debt, contact the collector deemedvalid. difficulties and are not able to immediately pay the full amount, ask about an extended payment plan or other paymentoptions. Act early: Get your finances under control as soon as possible. Create a monthly budget and avoid taking on more debt until paying down yourexisting balances. Pay on time: If you are following a payment plan, don’t miss payments or pay late as a creditor maybeless willing to extend flexible paymentoptions in the future. To learn more about smart financial management and your rights under the federal Fair Debt Collection Practices Act, visit www.acainternational.org.
