The amount of credit card debt owed by U.S. households continues to climb, with the average household debt reaching $16,061, up from $15,762 just last year. Millions of people struggle to keep debt at bay in America, and collection calls are rampant. Most people will do anything within their power to ward off these calls, which are too often made illegally. If you are in a tough situation, the following ways of temporarily relieving debt may sound appealing to you; however, in the long run, many of these methods may do more harm than good. If you are at your wit’s end with collection calls and letters, an attorney who specializes in fair debt collection practices may be able to help you put an end to the calls.
Paying the Bare Minimum
To pay off credit card bills each month, you are given the option of paying a fairly small amount of your total balance. This keeps more money in your pocket, but you end up paying much more over time in interest. As your balance inflates from the high interest rate, it could take you years to pay off a simple debt. If it is not possible to pay off the full balance each month, pay cash whenever possible. A personal loan is also an option to help consolidate your credit card debt into a fixed monthly payment. Rates for these are usually lower than those for the average credit card.
“Rainy Day” Savings
Money that you keep in a savings account for sudden emergencies should be ignored until an emergency takes place. Paying debt is not an emergency, however, losing your job or a sudden medical bill is. You never know when you will need to use rainy day savings. If you do not have that money, you will find yourself in an even worse situation, and incoming debt collection calls will not be among your top concerns.
If you think that you are tired of collection calls now, don’t expect that a quick payday loan will put them to an end. The company that provides the loan is sure to continue the nuisance calls, and such companies are known for taking aggressive measures to get you to pay. Payday loans are small loans that are due in their entirety upon your next payday. Although a single payday loan typically does not exceed $1,000, many consumers find it difficult to pay that all in a lump sum upon their next paycheck. The average APR is 400% for these loans. Federal law regulates how debt collectors can call and write letters to consumers about their debt through two Acts: the Fair Debt Collection Practices Act and the Telephone Consumer Protection Act. These laws bar many common behaviors debt collectors use to try to trick you into paying your debt. The best way to stop these harassing phone calls is to speak with a Fort Lauderdale debt harassment attorney as soon as possible. Jibrael S. Hindi and his team of attorneys has experience taking TCPA and FDCPA cases. You may be entitled to significant compensation if it is determined that these laws have been violated by your debt collector. They don’t take a dime until they win for you!