1. Be aware of the statute of limitations in the state you live and in the state the debt was incurred if they are different. If it has expired, the collection agency will have limited legal options.

2. You may want to ignore the call. If the statute of limitations has expired they have very little recourse and you have a lot to lose by negotiating repayment. Repayment could cause it to be relisted on your credit report again.

3. Write them a letter and send it certified mail. Do not admit to the debt. Once they have received the letter the law prohibits them from contacting you again.

4. Know what your rights are. A copy of the Fair debt Collection Practices Act or a copy of “Money Troubles” by Leonard will familiarize you with what your legal right are.

5. Watch your credit report. If you see something on your credit report that is incorrect, you can dispute it with the credit bureau. If the reporting agency or creditor can not prove that the information is correct, it will be removed.

6. If the statute of limitations is still current, you may want to try to work out a settlement with the agency. Negotiate with them and see what you can get worked out.

Collections has become a very lucrative business. Knowledge is power. You will best be able to handle your debts if you know what your rights are and where you stand.

Let me explain exactly what credit card counseling is.

Maybe you have regretted taking on so much credit card debt and wish you had not applied for so many cards. If this is the case then you can get help from the credit card counseling professional.

You and the counsellor will get together to go over the best debt management program for you. These meetings will give you the information and skills you need to manage your debt. This will help you to face your future, be more optimistic and not so deeply in debt. You will also learn money management skills that will help you to identify areas where you need to be careful and help you develop more responsible spending habits.

Now that you know what this program is all about, how do you get started?

First you must realize that you need to get out of debt and learn to control your spending. The only way to do this is to clear all your debt and this should become your top priority. Knowledge is power and you need to learn to control your finances.

Dont be afraid to ask if there are things about the program that you dont understand. The only dumb questions are the ones you dont ask!

Now lets go over the types of credit card counseling available.

One of the most popular types of credit card counseling is debt consolidation which can include your credit card debt. Choose this option with care as you do not want to take on additional debt without closing those credit card accounts.

One other thing to consider with credit card debt consolidation is that you will probably not be able to use your credit cards any more if you choose this option.

The most important decision is to do something to get rid of your credit card debt. Find a reputable consumer credit counseling company and sign up today!