The Myth About Debt Collectors

Do you have countless bill collectors calling each day? Are you afraid to pick up the phone because you know it will probably be another credit card company or debt collector trying to bully you into giving up some more money? Here's one important truth about debt collectors.

The truth is that debt collectors have very little power, and they know it. Why do you think they're constantly intimidating their clients? Have you ever been told that if you don't pay your full amount that they will take "further action" or consult their attorneys? What exactly does that mean, anyway?

If they had any real power, they would have already used it. In fact, any creditors who had a lien on one of your assets may have already take an action such as repossessing your car or trying to foreclose on your house. The reason that bill collectors harass you so much is that they don't have any real power to take your possessions, at least without taking legal action against you and having the court enter a judgment against you.

This is not so easy to do, and even if the creditors are successful, it's not like they can throw you in jail for not paying. The major weapons that collectors have, besides intimidation, are canceling your account and reporting your delinquencies to a credit agency.

We're not saying that these are good situations to be in or that you should ignore your legitimate debts, but these consequences are not foremost on your mind if you are truly struggling with your finances. The point of all this is not that you should ignore your creditors simply because you don't feel like paying them.

The point is that you should not feel intimidated and freak out because you are being pressured into paying off accounts even though you can't really afford to at the moment.

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