Well let's see, right now it's possibly one of the worst debt consolidation assistance company in 100 years. The only worst events are the depressions like the Great Depression and other previous ones. What this means is that a lot of people do get hit hard in the pocketbook. According to the news as every now over 5 million people have lost their jobs. That's a lot of people. The GDP or gross domestic product for the US has now declined significantly more than 5%. So what this means is a lot of people out there have lost their jobs and a lot more will still lose their jobs. So what happens when these millions of people can't pay on their credit cards anymore?

Well creditors will automatically start dinging your credit report with late notices right out of the gate. They will also start calling you and they will, of course, take the opportunity at the first chance to raise your rates drastically. Now debt consolidation assistance company sign the new bill into effect that places some limitations on the credit card industry that they have to give you a certain period of time before they can up your rates and notify you first, etc... Regardless of what you might think this bill is a catch 22 in that it will make it so that those that before could barely get credit now they won't. And those that pay well on their credit cards will end up paying more to cover those that don't.

So back to what we are talking about here, they will up your rates and they will be hounding you on the phone. If after that you still don't pay most credit card companies will write off your debt and sell it to a third-party collector. They will sell your debt literally for pennies on the dollar. Depending upon the age of your debt and how long it's been since you've made your last payment will be the price they pay. Usually it's in the range of between five cents and 25 cents. As the debt gets older and less likely to be paid off the value of these debts goes far lower to between one penny and $.10 at most.

Do you have cloudy, worn and ugly headlight lenses on your car, truck or SUV? Then restore them to new again with a New Lite headlight restoration kit!

So for instance, if you owed $20,000 and hadn't paid on it in several years a third-party collector might have bought it for $2000, but don't expect them to share that deal with you. Instead they will usually send you a bill for the $20,000 plus extra costs, fees and interest. Now these third party collectors or collection agencies are regulated by laws like the FDCPA or the fair debt collection practices act. This regulates when, where and how they may contact you and much more.

They cannot threaten you with jail because in America we do not have debtors prisons. In America and most countries debt is considered a civil matter not a criminal matter. If a collector calls you and threatens you with jail be sure and get on tape and then go and find an attorney that specializes in consumer debt. The minimum fine is $1000 per occurrence plus any penalties, sanctions, etc. awarded by the courts. So again, you cannot go to jail for routine credit card debt (you can go to jail, however, if your purchases involved fraud or if you try to pay it off with a forged check or similar).

Collection agencies can call you between regular hours of 8 AM and 9 PM. They can call you on the weekends but they cannot call you at your place of employment if you told them not to. The easiest way to deal with a collection agency is to write a letter typed up on your computer that says you do not want any more contact with them and send it to them by registered mail. Do not ever agree to the amounts owed in writing especially if you are near, at or beyond the statute of limitations on the debt. It is important to note here that the statute of limitations varies by state. So be sure and look up what it is for your state.

If you are near the statute of limitations or beyond it there is no reason for you to pay on it. A creditor can place an unpaid account on your credit report for a maximum of seven years. 10 years if they get a judgment against you (this is the same as if you had a bankruptcy reported they stay on your credit report for 10 years). If you read lately there's what they call zombie debt collectors this is where collection agencies trying clock on debt that is way out of the statute of limitations. They cannot report this on your credit report and you do not have to pay on these accounts. That doesn't mean they're not call your bug you about it – just hang up on them or never pick up the phone from them in the 1^st place. This is where caller ID and a phone with blocking functions on it will come in very handy.

Now another question some people have is will I be sued or can they take my home from me? The odds are with the first one – no. And the second one definitely no. In the current economic crisis unless you have substantial assets or the creditor somehow sees you as not paying when you easily could (they've found you to be making a lot more and see you as just trying to avoid paying them) they rarely will ever come after you and sue you. This also depends heavily upon the amount owed, whether you are employed, your current income and other similar factors.

As to losing your home that won't happen. Unless you stop making payments on your mortgage at the same time, a creditor or collection agency cannot touch her home due to the Homestead act. The only way someone can touch her home is they have to be the original mortgage creditor and you have to be seriously behind in your mortgage payments or if you are seriously behind in child-support payments (some states have ranked up or are considering raising their collection powers for seriously delinquent child support payments).

Do you suffer from acne, pimples or wrinkles? Treat them with a real TCA peel and have clean, clear and younger looking skin!

Now, you can at any time decide to work out a deal with your creditors this would be good for you to do if it is early in your loan or specially if you've never been late. If on the other hand you've missed a bunch payments and you haven't paid in several years then it is probably better to try and wait for the statute of limitations to run out. That does not mean that you don't own the debt even if the statute of limitations run out you still on the debt they just can't collect on it. Many times you can ask your work I deal with the creditor to pay less than what you will if you can pay it off in full specially if you've been late or haven't paid for a year or more. That is something you will have to judge and work out for yourself.

You can also use a non-for profit debt consolidation assistance company to get your payments and principle reduced. Be careful when using debt consolidation assistance companies as there are numerous ones out there that are actual scams. Make sure there are no upfront fees whatsoever and only pay them if they've achieved what you wanted them to achieve with your credit and/or your debt. Many states have passed regulations and laws that make it illegal for a debt consolidation assistance company to ask you for an upfront fee or payment. Be careful here and make sure you learn your state laws that regulate this.

Good luck and I hope you found this informational. The above article does not constitute legal advice and is only opinion. For proper legal advice on this topic see a local consumer credit and debt attorney.