Denver, CO -- (ReleaseWire) -- 03/13/2009 -- There are times in our lives when circumstances may prevent us from paying our bills. Divorce, loss of job, medical bills or even the loss of a loved one can start a chain reaction that is difficult to stop. Bills mount, debts go unpaid and you get further and further behind. You owe money, but you just can’t pay. And then the phone calls start. Debt collectors are hired to recover money that creditors have lost and they use endless phone calls and/or threatening letters to contact you.

There are ways to deal with collection agencies, and if you want the incessant phone calls to stop, you need to know them. It can be quite taxing to deal with the problems associated with debt collectors, but if you remain calm and follow these guidelines, the stress can be reduced:

1) When speaking to collection agencies, make sure you know your legal rights.

•One of your rights is that your privacy must be respected and you should be dealt with fairly. Request that they not contact you at inconvenient times, such as when you are at work.

•The debt collectors should treat you respectfully; they must not abuse or threaten you, publish your name, or speak to you in an obscene manner.

•They should not do the following when collecting your payments: imply falsely that you have committed a crime, that they are attorneys or representatives of the government or that they work for a credit bureau.

•When collecting payments for your debts, the agency should not engage in unfair practices.

2) Keep very detailed records. When speaking with a representative of a collection agency, make sure you write down their information.

•You should ask for the following: the caller's name, his/her agency's name, the agency's address and fax number as well and the lender's name and the amount of money they say you owe.

•Keep a record of who you spoke with, their title, and a brief summary of your conversation. Unless you inform your caller, you are not allowed to tape the conversations you have. When conducting physical communications, make sure that you retain all copies sent or received.

•Write everything down. You'll need to draw up a letter to send to the collection agency if you wish to dispute a debt or of you simply want to request that they stop calling you. Make sure any additional requests you make are also documented in writing.

3) If you owe any debts, pay them off. There is no other way that would be more effective for handling collection agencies. Once you have cleaned up your account, you should not hear from the collection agent again. If you are currently unable to meet your financial obligations, contact the agency to which you are in debt and explain the reason for your hardship.

4) Ask the agency if they will refrain from adding any more negative marks on your credit report if you make new payment arrangements. You can do so by making sure that the agency has reported all of your payments to the credit bureaus, and if not, keep reminding them until they do so. You have the right to request that the creditor give you any terms for payment in writing.

While facing debt can be extremely scary, it must be done, especially for those with large amounts of debt. Having the knowledge about your rights can be your best weapon. It's not difficult to deal with collection agencies as long as you are aware of all of your rights. You and your family can stay sheltered from unnecessary harassment's if you stay informed.

Karen Schimpf, Mortgage Quest, Powered by Universal Lending Corporation, specializes in helping release her clients from the “credit prison” that too many people find themselves in. When you or one of your friends finds yourself needing real answers and real solutions to credit issues, you can confidentially contact her at (303)400-8630, email her at karen@ColoradoMortgageTips.com or visit

http://www.creditrepairtruth.info/creditpr