When someone has credit card debt, it can be tempting to go along with any kind of payment request. However, Florida residents should be aware of a few facts and tips as to how best go about dealing with creditors calling for collection of credit card debt or any other kind of financial obligation. Blindly going along with payment terms or giving out bank information to settle a debt might sound like a quick fix, but it may be a mistake.
It is important to understand the statute of limitations for debt. When the statute of limitations has passed, the debt may still be owed. However, a creditor can’t threaten to sue for the debt. Before agreeing to pay, it is advised to ensure that the debt is still owed. This can be through a letter called a “verification of debt request.”
Giving out bank information over the phone should not automatically be done. There are other options for paying back debt, including a check or payment online. Settling and arranging for a payment plan should only be done once the debt is proven legitimate and if payment of the entire balance at once is not an option.
Credit card debt can be confusing for some and can also impact all other areas of a family’s finances. Florida residents may find they need professional help navigating unmanageable debt and in finding solutions. One solution that may benefit struggling Florida residents is filing bankruptcy as a means of discharging credit card or proposing a debt reorganization plan under the supervision and approval of the Bankruptcy Court.
Source: foxbusiness.com, “What to Do When Debt Collector Wants Your Bank Account Info”, , April 7, 2014