Do you currently have more credit card debt than you can effectively manage? If so, you may be dealing with phone calls and other collection efforts from creditors and third-parties hired to collect. After a few missed payments, your credit card company may send your debt to collections, and you may wonder what you should do next to regain control over your financial circumstances.

When credit card debt goes to collection, it means the card company was unable to get payment from you. Usually this happens after a few missed payments or inability to get in touch with you about your balance. The company sends the debt to a collections agency, and the people who work there have the responsibility of trying to contact you about payments. This can lead to phone calls and other types of contact. It can be annoying and even overwhelming to deal with collections agents.

What you should know

If your account goes to collections, there are certain things you should know about how to protect your interests. First, no matter how much debt you owe, you still have rights. There are limits to what debt collectors can do. For example, they cannot threaten you, use foul language or tell you that you can go to jail over your unpaid debt. Treating you unreasonably or using unlawful collection practices is a violation of federal law.

It may be possible for you to work out a payment plan with the collections agency. This will allow you to repay your debt and possibly put an end to the constant contact. However, if you could not manage your credit card payments, it’s possible you will not be able to manage a payment plan.

A better solution may be available

There are other ways you can deal with credit card debt. You don’t have to wait until it goes to collections or attempt a payment plan you know will not really work for you. It may be in your interests to go ahead and learn more about the benefits of filing for consumer bankruptcy.

This process allows you to discharge certain types of unsecured debt, including credit card balances. If you are overwhelmed and unsure of how you can ever get back on your feet financially, this could be the right choice for you. An assessment of your case with a Louisiana bankruptcy attorney can help you make the right choices for your future.