Hearing from a debt collector can feel terrifying. Maybe it was a call, a letter, or a notification that popped up out of nowhere. Whether you expected it or not, it's easy to feel panic, shame, or even freeze up completely. But here is the truth: you still have options. You still have rights. And, you can move forward. Take control of the situation without fear.

 

A short guide to take control

Step 1: Don't ignore it 

It's tempting to avoid collection notices, especially if you don't know how you'll pay. But, ignoring the situation can make things worse, resulting in added fees, legal action, or damage to your credit.

Take a breath. You don't need to fix everything today. Do open the letter or take note of the call, so you know what you are up against.

 

Step 2: Get the facts

Debt collectors must provide proof that the debt is real and that they have a legal right to collect it. This is called "debt validation." You have a right to request it.

Ask for a written notice that includes:

• The amount of debt
• Who the original creditor is
• Your rights under the Fair Debt Collection Practices Act (FDCPA)

If you are unsure, send a debt validation letter within 30 days of first contact. 

 

Step 3: Know your rights

Debt collectors must follow federal (and state) laws. You are protected from harassment and dishonesty under the Fair Debt Collection Practices Act (FDCPA).

They cannot:

• Call you before 8 a.m. or after 9 p.m.
• Call you at work if you have asked them not to
• Threaten arrest or legal action  they can't take
• Use abusive language or repeated harassing calls

If any of that happens, keep records and report them.

 

Step 4: Check if the debt is past the Statute of Limitations

Every state has a statute of limitations (usually 3-10 years) for collecting debts. After this period, the collector can still try to collect, but they cannot sue you.

WARNING: If you make a payment or agree the debt is yours, it could restart the clock. Always verify the age of the debt before you agree to anything.

 

Step 5: Decide how to respond

• Option 1: Negotiate a settlement or payment plan

You may be able to settle the debt for less than the full amount. If so: 

1. Get everything in writing before sending payment
2. Don't give access to your bank account. Use a money order or prepaid card
3. Only agree to a monthly amount that you can afford

• Option 2: Dispute the debt

If the debt is not yours or the amount is wrong, you can dispute it in writing. Provide documents that support your claim.

• Option 3: Do nothing (strategically)

If the debt is too old to be legally enforced or is incorrect, you may decide not to pay it. This doesn't erase it from your credit report, but it may be the smartest move depending on your situation.

 

Step 6: Don't let one debt define you

One collection account doesn't mean you've failed or are irresponsible. Life happens and you are taking action now. That is all that matters! 

 

Collections doesn't have to feel scary

Collections are not permanent and they don't define your worth. You are still in control of your next step

Want to feel more confident with you money? You can:

• Start building a small emergency fund
• Make a simple budget
• Talk to a financial counselor (like me?) for support and strategy.

At Walters Financial Wellness, I'm here to help you navigate debt with dignity and confidence. You don't have to face it alone. Whether you are overwhelmed, unsure what to say to collectors, or just need a plan, I'm here to walk beside you.