by Joseph Kenny | 03/12/09

Credit card debt is an increasingly prominent source of stress for many people today, including those who have spent their lives making responsible borrowing choices.

Even the most responsible and conservative individuals are finding that their credit card situations are beginning to blow up as they fall prey to the worldwide economic crisis and are forced to make vital decisions about which bills to pay and which to let fall into default. Not surprisingly, the majority of people faced with the choice of paying their mortgage or their credit card bill are going to do what they can to keep a roof over their head.

Sadly, more people are facing this choice than ever before. In just the last three months of 2008, more than 7 billion US dollars in credit card debt went unpaid. With lending practices at the strictest ever and credit card companies calling on debt with record haste, what is a borrower to do? Thankfully, there are a number of borrower's rights that protect people who find themselves in such a situation. By adhering to a few simple principles, you too will be able to survive if you so happen to find yourself a victim of the credit crunch.

First of all, experts suggest, recognize that you do not have the right to simply ignore a collector. Many people are tempted to do exactly that, and just stop answering the phone unless they know precisely who is calling. This is a mistake, as it leaves the collectors with just a single option: find where you're getting your money from, and sue you for it. If you don't want to end up in court over unpaid debts, the best thing you can do is take advantage of the other legitimate rights that you *do* have.

First of all, you have the right to make a good faith offer to the collector to pay a reasonable amount less than what you actually owe (referred to as a "settlement"). For example, if you owed $5,000 that would take you several years to pay off at a steady rate, you might well make an offer to pay $3000 in one or two lump sums. With the number of people who are letting the credit go into default these days, such offers are increasingly likely to be accepted.

Furthermore, you have a right to have the debt removed from your credit report if you pay it. However, not all lenders can be bothered to do this on their own. Before you commit to making payments to a creditor, be sure to get it in writing that they'll clear their charges from your credit report once your account is settled in full.

Lastly, make sure that your collectors aren't harassing you by calling you at a time or place that they aren't legally allowed to. In general, debt collectors are restricted to calling you between the hours of 8AM and 9PM, and cannot call your employers, friends, or relatives to divulge information about any debts that you owe.

As a sense of animosity continues to grow between dejected borrowers and frightened lenders, the best thing you can do to protect yourself is to know your rights, and know how to defend them if they're being threatened.

If your debts are becoming too difficult to manage there are many debt consolidation companies that can offer professional assisitance.