My Journey to Eliminate Debt

Are you being harassed and intimidated by debt collection agencies? At a time when most people are already feeling lower than low and very vulnerable, being harassed by a debt collection agency can be enough to tip some people over the edge.

By the time the debt has reached the point that they are calling and demanding payment, most people are in a state of mind that reduces their capacity to think clearly and objectively.

They are demanding their money. You want them to stop.

Often people agree to anything to get them off their backs. Often this creates more problems later. I have had some personal experience of this situation years ago and this is what I wish someone had told me then. It might have saved me from debilitating depression.

• It is perfectly normal to feel stressed, anxious, depressed, have difficulty sleeping or panic attacks if the debt collectors are knocking at your door. You work will probably suffer due to all this. You are having a normal response to a very stressful situation.

• You are not weak for feeling this way. Lot's of people fantasize about just walking away and leaving it all behind. Sadly, some people do. Stick around, you can and will survive and eventually thrive even if it doesn't seem possible right now.

• You are not a bad person for having money problems. It happens to a lot of people. Yes you are responsible for the decisions you made. You may have made bad decisions, but YOU are not bad. Life may have dealt you a bad hand. Stop beating up on yourself about events that were out of your control. It will only prolong the pain and hold you back

• Get some support. Choose who you talk to carefully. Stay away from those who want to judge you or criticize you. Use forums, blogs, counselors, friends. If you feel better and stronger afterwards them it is helping. If you feel worse about yourself and lose hope after talking then stay away from those people. Many people have a need to condemn others to avoid dealing with their own lives. Keep away from 'holier than thou' types.

• Your health is your first priority! If you get sick now that will add more stress. Eat 3 meals day whether you feel like them of not. Exercise for 30 minutes a day whether you feel like it or not. Get a health check up. Don't ignore symptoms of headaches, chest pain, insomnia, depression and anxiety. Your body is trying to tell you it is under stress.

• Find out your rights and refuse to be intimidated. Debt collectors use specific, proven techniques to intimidate you. Don't apologize to them. Document everything! Ask how to spell the name of each person you speak to so that they are aware you are writing down their details. If they refuse or are harassing you ask to speak to a supervisor. Use an answering service to screen all calls. Report them to the appropriate body if they continue.

• I have found some sites and resources specifically related to dealing with coping with debt collector harassment:

US Sites:

• Understand the psychology of debt collection tactics and avoid being manipulated by them.

• Tips for Dealing with a Debt Collector. Privacy Rights Clearing House. An excellent site with very good articles and contact information.

• Sleazy new debt collector-tactics.

• What to do if you are being abused by a debt collector.

• Collections Communications Log. Record your communications in a standardized, objective way.

Australian Sites:

• The Debt Book. An inside look at debt collection. Old but useful. Here's just one quote " Keep phoning them, politely but firmly. (Keep threats out of it, but keep records of the calls you make -- they may be useful later.) Just wear down their excuses and hope they'll get tired of it all." ... and that's just the start. Read it and learn the tactics.

• Debt Collection Rights. Australian Competition and Consumer Commission.
  

• Debt collection guideline for collectors and creditors: joint publication by ACCC and ASIC.

• Report into Guidelines on Undue Harrassment and Co-ercion in Debt Collection. ACCC.

UK

• Harassment of People in Debt by Creditors. UK Insolvency Helpline

• Harassment of Debtors.

• Debt Collection Guidance. UK Gov

Great blogs:

• Alison's Fight Debt Page

• Ladies in the Red.