What to do when you have a debt in a different state?

Problem: Debbie suddenly received a call from Midland Credit Management for a debt they claimed she owed to FCNB. Debbie was taken by surprise as she had never heard of Midland Credit Management and was not aware of an account she had with FCNB. She lives in Ohio but the debt was in San Diego. Debbie also has other debts that she is having trouble paying off. Should she go to a debt consolidation company? Should she dispute this debt?

Solution: Debbie, a thumb rule about debt is that, when a collection agency calls for a debt you owe them, you first need to ask them for debt validation. You are entitled by the Federal laws to ask for debt validation. Even if you acknowledge a debt you could still send a DV letter. This way you may get details of the debt that you owe. You may not know how you have accrued the amount that you owe them. A debt validation should give you details of the debt and how it has reached the amount that you owe at present.

Many collection agencies are such that will attempt to collect a false debt thinking that you may become intimidated and may want to hurry into paying it off or entering in to a settlement. They may also become successful in doing so if you do not ask for validation. Under the debt consolidation San Diego laws Debbie, you have the right to seek validation.

If the company validates the debt then you can make further arrangements of paying it off. In the mean time you may do a bit of research on your own about the company you have doubts about.

Scrutinize the documents that they have provided as validation. If you think the collection agency is harassing you ask them to stop calling you by sending them a cease and desist letter. This is also your lawful right to ask them to stop contacting you unless it is to send you any new or updated information. Find out if Midland Credit Management is licensed to collect in San Diego. If not then debt consolidation San Diego laws will protect you.

About going to a debt consolidation company, after they (the creditor) validate the debt and you acknowledge it, you may try to get into an agreement with your lender(s) to repay a debt. You do not have to go to a consolidation agency. You may consolidate your debt on your own. A good communication skill will be an added advantage. You may try and speak with your creditors and request them to reduce your rate of interest or at least the total amount that you need to pay in balance. Many credit companies are considerate and agree to get in to a settlement. They may even waive off late fees if requested.

It is always better that you try and consolidate your debts yourself. This way you may be able to save the fees you would have to give the consolidation company and will also know that your money is going to the right place. There are several companies that may want to trick you, but again there are also companies who are valid. However, I think first you should give it a try and if you cannot work things out, then go to a debt consolidation company.