Tag Archives: DebtReduction

How Can Debt Affect Your Mental Health?

Being stuck in debt can do more than just create financial chaos in your personal life: it can also have severe effects on your mental health. High levels of debt can cause a range of mental health problems, such as depression, anxiety, stress and resentment. Depression: According to researchers at the University of Nottingham, people who are struggling with debt are more than twice as likely to experience depression. Another study at the University of Wisconsin-Madison’s Institute for Research on Poverty found depressive symptoms increase simultaneously with levels of debt. Stress: Obsessing over finances can cause enormous amounts of stress. A study from San Francisco State University discovered stress could take away the “enjoyment” normally associated with spending money. Instead of being happy about buying a new suit or pair of shoes, people in debt just become more stressed over the state of their finances. Anxiety: Having large amounts of…
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How Can I Avoid Debt Collection Schemes?

For many with past due debt, constant phone calls from collection agencies have become a familiar fixture in life. However, some of the people calling every hour may not be real debt collectors. In some cases, scammers will contact people and claim they are working on behalf of a collection agency to collect a debt, but in reality, they are thieves looking for an easy score. Several fake collection agencies have been targeted by the Consumer Financial Protection Bureau (CFPB) for contacting and lying to people about supposed debts. The fake collection agencies would have operators threaten people with jail time and recite bank account numbers to coerce payments for the non-existent debts. Fake collection agencies would also threaten victims with wage garnishments, suspended drivers’ licenses and lawsuits. Many victims of the fraud paid debts out of fear, without knowing what rights they have as consumers. What Rights Do Debtors…
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Are Complaints Against Collection Agencies On the Rise?

Collection agencies can make being trapped in debt even more exhausting and stressful. Harassing phone calls and aggressive attempts to contact debtors have caused many consumers to file complaints and lawsuits against collection agencies. Complaints against collection agencies are filed with the Consumer Financial Protection Bureau (CFPB). Under the Fair Debt Collection Practices Act, collection agencies are not allowed to misrepresent themselves, threaten debtors or use abusive language. In March, more than 3,800 consumers filed complaints against debt collection agencies. Among the complaints filed with the CFPB, 33 percent were for communication tactics, threats and making false statements. In one case, a collection agency used false information and threats to coerce people into making payments they did not owe. In another case several years ago, a collection agency was caught threatening to kill pets if payments were not made. Even collection agencies that work for the federal government have been…
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