What Not to Do with Creditors

In order to become a debt free woman, you will have to deal with creditors along the way. Here are ten things to avoid when dealing with debt collectors.

1. Lie. Lying is never a good strategy with bill collectors, and it will only backfire on you. If debt collectors catch you in a lie, you could be sued.
2. Settle without getting a confirmation letter. If you pay a debt, be sure the creditor sends you confirmation that your account has been closed. You should also check your credit report a few months later to make sure the account is marked as "settled," "closed," or "paid as agreed."
3. Not disputing a charge as quickly as possible. When you're trying to become a debt free woman, time is of the essence. If you become aware of a questionable or erroneous charge on one of your accounts, immediately dispute it in writing.
4. Sell property. Don't ever sell the things you bought with the creditor's money when you still owe money on the account. This will give the creditor much more power over you because equity is usually easier to protect than cash.
5. Do nothing. You will never be a debt free woman if you ignore a debt collector. If you know a collection agency has a legitimate claim against you and they know you have a job, your wages could be garnished eventually. To avoid this, look into your options immediately and consider speaking to an attorney.
6. Bounce checks. If you bounce a check you wrote to your creditor, you'll be referred to the legal department and probably sued.
7. Get intimidated. Becoming a debt free woman requires a fairly thick skin with bill collectors. Don't let them bully you around, and make sure you know your rights as a consumer.
8. Allow the creditor access to your bank account. Don't ever give a bill collector your checking account number for a direct withdrawal. They can easily take advantage of this information.
9. Make hollow promises. It may seem easy to tell the creditor that the check is in the mail, but empty promises are not the way to become a debt free woman. You could get sued for lying if you don't make good on your promises.
10. Avoid their calls. Ignoring bill collectors' calls will only lead them to call more frequently. You're better off answering and dealing with the situation directly.