Credit Card Counseling - Rules You Must Live By

If you are having trouble with banks and credit card companies over late payments or defaults, there are some very important rules you must live by. Failure to live by these rules can result in bankruptcy, foreclosure and legal judgements. These rules are simple and straight-forward.

First, if you are unable to pay your credit card bills do not contact your credit card companies directly. You are in no position to negotiate with these businesses. They have legal departments that can file suit against you, they can ruin your credit rating, they can sell your account to another company leading to years of harassing phone calls, and ultimately you have no way to hold them accountable. A credit card counseling service can hold credit card companies accountable. They know your rights, what is legal and what is not, and they represent millions.

Second, do not ever contact your credit card company by phone. Contact them only in writing and respond only in writing. If they call you, tell them they are calling on a business number and hang up.

Third, the first thing you must ask of any new creditor is that they mail you proof that you are responsible to THEM for the debt. You will provide this information to your credit card service. It is not the case that because your debt is sold to a company that you are automatically obligated to meet that company's terms and conditions or to pay their additional fees.

Fourth, if you have credit card debts that are more than a year old, do not pay them. State and federal laws say that debts must be forgiven if you have not paid them for varying lengths of time. Paying them restarts the clock.

You are not obligated to answer anyone's questions on the phone or to put up with harassment at work. Working with a credit card counseling service will help insure your rights are protected.