Dealing with the collection agency (CA) is one of the most dreaded things for the debtors, since collection agencies are generally known to harass debtors for collecting debts. They call at any time, and threat the debtors over the phone. However, there are laws and various ways to deal with the collection agencies.

1. Knowing the rights – the very first thing that you should do so as to deal with the collection agencies is to know your rights. They threaten you with dire consequences if you don’t pay them, they call at odd hours. If you fear to deal with them, and fall into their trap, you should know that there is a rule under Fair Debt Collections Practices Act (FDCPA) that prohibits the collectors from threatening or calling the debtor at odd hours. (Calling hours: 8 a.m. to 9 p.m.)

2. Debt validation – the collection agency can list a debt on your credit report, and may harass you for paying off the debt. However, you should know that you have the right to know whether the debt has been incurred by you. As an answer to your debt validation the collection agency is required to provide you with proof that they have the authority to collect the debt, your original contract with the creditor, and the outstanding debt amount. Most of the time CA sends an answer to your validation without the required proofs. Debtors not knowing what the CA is supposed to provide start making the payments. The CA must provide at least any two of the proofs.

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Pay day loans also known as cash advance loans or deferred deposit check loans are considered to be a good option to pay off debts in case of emergencies. It is popular because one can get immediate cash out of payday loans. However, the fees on payday loans are very high. Moreover as it’s quite easy to get a payday loan, it is very common for people to fall into payday loan traps. However there are ways to get out of a payday loan trap. The best way is to avoid getting payday loans.

Ways to get out of payday loan trap

1. Repayment plan – You can try negotiating a repayment plan with the lenders.

2. Getting money from family – If the lender doesn’t agree to repayment plan, you can try getting money from your family members and friends, and try paying off these loans.

3. Get conventional loan – If you have a good credit score, you can try getting a conventional loan to pay off the payday loans.

4. Create a table – Make a table on how much you need to pay. Strike off the one which you are paying off. When the amount you owe lessens, you will motivated to pay off the rest.

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