IN DEBT? HERE'S WHAT TO DO WITH DEBT IN THE MILITARY (AVOID THIS MISTAKE)

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Debt is a tough topic, especially in the military. Many of us avoid talking about it, but ignoring it can lead to bigger problems. If you’re dealing with debt collectors or have debt in collections, this article will help you understand your rights, avoid scams, and make smart decisions about paying off your debt.

WHAT HAPPENS WHEN DEBT GOES TO COLLECTION?

When you can’t pay off a debt, it often gets sent to collections. There are two ways this can happen:

  1. The original creditor uses their own debt collection agency to get the money from you.

  2. A different company buys your debt from the original creditor and tries to collect it.

This is where things can get tricky, so it’s important to know how to handle debt collectors.

WHAT TO DO WHEN DEBT COLLECTORS CALL

If a debt collector contacts you, don’t panic—and don’t pay right away. Here’s what you should do:

  1. Ask for information: Find out who the original creditor is, how much you owe, and when the debt was created.

  2. Don’t admit to the debt: If you admit the debt is yours, it could restart the clock on an expired debt.

  3. Get their details: Ask for the collector’s business name, address, email, and phone number. This helps you verify if they’re legitimate.

  4. Check for mistakes: Sometimes the amount they say you owe is wrong. Double-check with the original creditor.

  5. Request proof: Ask the collector to send you proof of the debt, like a copy of your credit card bill.

YOUR LEGAL RIGHTS

Debt collectors can’t harass or threaten you. Here’s what they can’t do:

  • Make you pay more than you owe.

  • Threaten to arrest you or garnish your wages.

  • Call you repeatedly to intimidate you.

If a debt collector uses these tactics, they’re likely scamming you. Hang up and report them.

HOW TO STOP DEBT COLELCTORS FROM CONTACTING YOU

If debt collectors won’t leave you alone, you can stop them. Here’s how:

  1. Send a handwritten letter: Tell the agency to stop contacting you.

  2. Wait for their response: They might stop pursuing you or threaten legal action. Either way, you’ve taken control of the situation.

SHOULD YOU PAY OFF DEBT IN COLLECTIONS?

If your debt is already in collections, your credit score has likely taken a hit. Paying it off won’t fix your score, but there are a few reasons you might still want to pay:

  1. Negotiate to remove the bad mark: Some agencies might agree to remove the debt from your credit report if you pay it off.

  2. Get everything in writing: If you agree to pay, make sure the terms are in writing or email. Don’t rely on verbal promises.

HOW TO AVOID DEBT IN THE FIRST PLACE

The best way to handle debt is to avoid it altogether. Here are some tips:

  1. Don’t buy on credit unless you can afford it: If you can’t pay for something 2–3 times over, don’t put it on a credit card.

  2. Think before you buy: If you want to make a big purchase, wait a week. If you still want it after a week, and you can afford it, go for it.

  3. Talk to your command: Reach out to someone in your unit who’s good with money. They can give you advice and help you stay on track.

FINAL THOUGHTS

Debt doesn’t have to control your life. By understanding your rights, avoiding scams, and making smart financial decisions, you can take control of your debt and build a better future.

If you’re struggling with debt, don’t be afraid to ask for help. Talk to your command, reach out to a trusted mentor, or share this article with someone who might need it. Together, we can break the stigma around debt and help each other succeed.

Disclaimer: I’m not a financial advisor. This article is for educational purposes only. Always do your own research before making any investment decisions.

© 2024 Joey Nguyen

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