Gone are our parent’s days of saving to purchase big ticket items. With the ready availability of large amounts of credit at historically low-interest rates, everyone can buy what they want, now. We use credit for houses, cars or everyday expenses that let us enjoy a better quality of life. However, access to cheap credit has its costs. While we obtain this debt with the intention of paying it back, our financial profile can quickly change with illness, injury, unemployment and other unexpected events. When unforeseen circumstances happen that adversely affect our ability to repay creditors, we must make stressful decisions.
When excessive debt load outweighs household income, we often have to face actualities such as bankruptcy or foreclosure protection. Creditors are any party to whom money is due, and often these lenders will hire third party companies that take a percentage of any debt collected. Aggressive tactics used by bill collectors that work on behalf of your creditors can exacerbate an already difficult situation. While it is understandable that lender's want to receive payment, unlawful behavior to collect on your outstanding balance is unacceptable.