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6 Ways to Handle Pushy Debt Collectors

By U.S. News & World Report

Getting calls from debt collectors is unpleasant, especially when the person on the line is aggressive. Instead of losing your cool, follow these tips to handle them and protect yourself in the process:

Keep a Level Head

Don’t let a debt collector threaten or scare you into reacting. Reacting from emotion can cause you to say things you will later regret. Remember, your conversations are recorded. Speak with conviction, but don’t be rude. If you feel a call from the collection agency is not going well, request to have the conversation put on hold until another time.

[See: What to Do If You’ve Fallen (Way) Behind on Your Credit Card Payments.]

Know That You’re Protected By the Law

Thankfully, there are laws that prohibit debt collectors from crossing the line and harassing consumers. The Fair Debt Collection Practices Act regulates how debt collectors can communicate with the public. Let’s review some highlights from the Act.

Debt collectors can’t:

— Contact you outside of 8 a.m. to 9 p.m.

— Annoy or bother you intentionally.

— Communicate with you after you send a written request to end contact (unless they need to notify you of a new development like pending litigation or termination of your account).

— Call you at work if your employer doesn’t allow it.

— Use abusive language or threaten legal action that’s not possible or that they don’t intend to act on.

If a debt collector is making you feel uncomfortable or using abusive practices, you need to record these events. Then submit a complaint to the Consumer Financial Protection Bureau.

[See: How to Live on $13,000 a Year.]

Find Out the Statute of Limitations for Your State

Pushy debt collectors want your money, so they probably won’t be inclined to share that there’s a statute of limitations on debt, which varies by state.

A debt collector can no longer take you to court for an unpaid debt once a certain amount of time passes. Watch out for debt collectors who attempt to threaten a lawsuit anyway.

Keep in mind, this doesn’t mean your debt disappears. Whether you choose to forget about the debt or pay it once you no longer face legal action is a personal choice. Still, it’s a choice you have the right to make.

You can send a cease and desist letter to stop debt collectors from calling you after the statute of limitations period passes. The debt collector has to comply with your request or risk being in violation of the Fair Debt Collection Practices Act.

Get Proof of the Debt Before Agreeing to Pay

You need to ask for a debt verification letter whenever someone contacts you from a collections agency. From this letter, you’ll get two important pieces of information, including how old the debt is and whether the debt is legitimate.

Don’t pay or acknowledge a debt over the phone without checking the age and accuracy of the bill. If you start making payments on a debt that’s incorrect, you may have trouble disputing it later. Furthermore, if you admit to and make payments on a very old debt, the statute of limitations cycle may restart.

[See: 10 Easy Ways to Pay Off Debt.]

Prepare Before Each Call

Whenever you speak with a debt collector, you want to be cool, calm and collected. If you tend to get nervous on the call, develop a script to help you remember everything you want to discuss with the agent.

If you need to dispute an unpaid debt, have all of your documents available to ask and answer questions quickly. You can also run through your legal rights beforehand for a quick refresher in case you need to address a debt collector who isn’t speaking to you with respect.

Ask for Everything in Writing

Keep a written account of each phone conversation you have with a collections agent. If you come to a payment arrangement or settlement, ask for it in writing as well.

Included in the agreement terms should be a confirmation that fulfilling your end of the deal will satisfy the debt entirely. If you ever need to appear in court regarding your debt, you want to have as much evidence as possible in your favor.

Final Word

Debt collectors are skilled at making you feel as if they have the upper hand, but you have quite a bit of leverage. Knowing your rights and remaining unflappable during a collections call is the best way to go.

More from U.S. News

12 Ways to Be a More Mindful Spender

9 Scary Things Consumers Do With Their Money

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6 Ways to Handle Pushy Debt Collectors originally appeared on usnews.com

Don’t Settle for Student Loans to Pay for Online Education

By WTOP Staff
Online college programs are becoming a more popular choice for prospective students, with one study finding that more than 6 million students enrolled in at least one online course in fall 2015. The popularity of these courses can be attributed in part to their flexibility with working adults' schedules, students' ability to progress more quickly through online programs and, oftentimes, cheaper tuition. [See 10 low-cost online bachelor's programs for out-of-state students.]Online degrees can be beneficial to many college students, but some studies have shown online learners complete their programs at lower rates than students at traditional brick-and-mortar campuses. Individuals with student loans but no degree comprise two-thirds of defaulted borrowers. Though these numbers are not encouraging, just like for traditional programs, there are ways to reduce how much you'll need to borrow for an online program to ensure you won't become one of these statistics. Don't just settle on borrowing student loans to cover the whole cost of your program and living expenses. Instead, start thinking about how to cut costs and cover your balance in different ways, such as the following. -- Grants and scholarships: Even though you are taking an online course, you can still apply and receive grants and scholarships. But your first step should be to complete the Free Application for Federal Student Aid, commonly referred to as the FAFSA, which will allow you to receive a Pell Grant if your expected family contribution is low enough. The EFC criteria and award amounts are adjusted annually, but the 2017-2018 academic year awards range from $606 to $5,920, which could significantly lower the amount you borrow annually. Your next step is to apply for scholarships. You can start by checking online scholarship search engines, such as the Salt Scholarship Search, College Board's BigFuture and Peterson's. But don't forget to take advantage of local organizations and your school's financial aid office. Both may offer scholarships that you can't find with a national scholarship search. [Review these 10 sites to kick off your scholarship search.]For instance, organizations like the Elks Club, Knights of Columbus or the Rotary Club typically offer scholarships annually to local students. Just because you're going to school online doesn't mean you're ineligible. Visit your local library for scholarship listings, and ask around town. You might be surprised how many local organizations offer scholarships. While these scholarships typically aren't large, every little bit counts. Each dollar you receive in a scholarship is a dollar you don't have to borrow and pay interest on. -- Work-study: Another option for online students may be work-study awards. Not all students enrolled in online programs are eligible, but students at some schools -- including, for example, SUNY Empire State College and Liberty University -- are. Work-study awards are not given upfront like scholarships and grants. In most cases, they are an offer to earn up to the awarded amount if you secure an eligible work-study job. While there is a misconception that all work-study jobs must be on campus, students can work for off-campus, nonprofit or public employers as long as the work is in the public's interest. You may be able to work for a for-profit employer if the job is relevant to your course of study. No matter who the outside employer is, it will need to have an established agreement with your college for you to receive work-study funds. Remember, to be eligible for federal financial aid, you must be enrolled and pursuing a degree or certificate. If you're not working toward a credential, Pell Grants and work-study won't be option, but you may still be able to take advantage of private scholarships -- just be sure to read the eligibility criteria carefully. [Explore what to know about financial aid in online programs.]-- Pay as you go: One of the great benefits to enrolling online is the flexible schedule, which can allow you to complete your college coursework around your responsibilities. But prospective students often overlook using their part- or full-time job earnings as an option for paying for college. Almost 80 percent of college students in 2015 worked at least part time while attending classes, according to the National Center for Education Statistics. By budgeting and thinking strategically about your college costs, you can likely reduce your dependence on student loans by paying a portion out of pocket. Many -- but not all -- online programs are less expensive than traditional programs and often have shorter payment periods. Six, eight or 10 weeks are common course durations. Because of the frequency of payments in an online setting, you may be well-placed to pay as you go and possibly avoid borrowing altogether. Attending college online and avoiding student loans may be challenging, but if you are willing to put in the effort, you can limit the amount you need to borrow. More from U.S. News Q&A: Understanding Student Loan Discharge Eligibility Student Loan Refinancing Isn't Right for All Borrowers
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