With the credit economy exploding over the first

Below are 5 basic common sense tips when dealing with creditors: Demand a debt validation letter be sent within 5 days of the initial contact. If you are contacted by a collection agent by telephone at work or at home don't argue with them or provide any information over the telephone. None! No personal information. Simply, request the agent provide a debt validation letter in writing within 5 days of the contact. In the meantime, get a copy of your credit report. Review your credit report for the account in question. Make sure there is not another creditor collecting for the same debt. Verify the original creditor has marked the account balance to zero. After you get the debt validation letter review it for accuracy. Educate yourself on the Fair Debt Collection Practices Act (FDCPA). It is more than 20 pages but it covers everything from what a debt collector can do to prohibited practices and what your recourse is if you have been treated unfairly including your right to sue a debt collector for violations of the FDCPA. Negotiate.

They are working on commission so don't expect them to roll over. If you have financial constraints make sure they are aware of your limits, and don't feel like you have to take their first offer. In your negotiations do not give out any personal information. If the collection attempt is legitimate they should have all the information already. Don't give out bank information or your social security number. Finally, Keep copies of everything and get any agreement in writing. If you do come to a payment arrangement don't pay with a credit card or post dated check. Get a money order or a certified check and keep your receipt as well as all related records to the collection.