DEBT MANAGEMENT » Get out of Debt

Debt is no stranger to the average college student. In fact, between building it up while in school and having to try pay it off afterward, most college students know a thing or two about it. The debt that college most students should worry about? Student loans and credit cards, both of which can grow out of control rather quickly.

So you're probably wondering how you can avoid building up unwanted debt while in college. It really boils down to the choices that you make beforehand and along the way. Let's look at what some good choices might be to help you stay on the right track:

• Acquire scholarships. Getting your hands on one or more scholarships is a great way to avoid both types of debt. For instance, if you receive a full-ride scholarship from your school of choice and another scholarship from a private business or person, you may be able to use the money from the second scholarship to pay for books, clothes, and other items.
• Start college while in high school. Another great way to avoid debt at the college level is to start taking advanced-placement classes while in high school. The more AP classes you pass while in high school, the fewer classes you'll have to worry about paying for when you get to college.
• Get a job. In addition to looking for scholarship opportunities - and even grant opportunities - it doesn't hurt to look for a part-time job. This way, you can cover any additional expenses you may have without the need of a credit card to help you out.
• Exercise discipline. Keep in mind that there's nothing wrong with applying for one or two credit cards in college. If managed appropriately, you can actually build your credit in a positive way. However, if you use your credit cards for shopping sprees without paying them off on time, you could watch your credit score drop before you ever have a chance to apply for a serious loan (i.e. car or house).

Because college is so expensive, it can sometimes be tough to avoid debt. However, if you take the right steps, you can find yourself in a great financial position after you graduate.

If you've suffered from abusive debt collection practices from a collection agency or "litigation firm," you were probably the victim of scavenger debt collectors. These companies are created for the simple act of collecting on an old debt that they've bought from a creditor or collection agency. While the debt may now fall outside of your state's statute of limitations and is legally uncollectible, they prey on ignorance to extort money anyway.

What's the Deal with Scavenger Debt Collectors?

There may have been a time that you received a phone call from a "law firm" that said that they were in the process of filing in court to sue you for a debt that you owe. However, if you strike a deal with them to begin making payments on your debt, they will not sue. This is a pretty scary scenario, right?

Well, the good news is, you actually don't have to be scared. This person is most likely not an attorney, or even paralegal for that matter. This person is likely a kid, making not-so-great money at a collection agency, who was given a threatening script to conduct abusive debt collection practices. Very often, if you simply conduct a search of the "law firms" name, you'll find scam reports all over about them.

Why Are They Doing It?

So you're probably wondering why these scavenger debt collectors are doing it? The reason is simple. After the original creditor tried to collect their debt, yet was unsuccessful in doing so, they charged the debt off as a lost and sold it to a collection agency for pennies on the dollar.

Say for instance, you owed Company A $1,000 and never paid. After being unable to collect, Company A sold the debt to Collection Agency B for $70 and charged it off. Now, Collection Agency B wants to try to collect the $1,000 plus interest. Their desire is to get as much from you as possible, even if it's not all of it. And they're willing to break the law to do it.

So what can you do about these scavenger debt collectors? Luckily, you are protected by the Fair Debt Credit Practices Act as well as state laws. So educate yourself on steps you can take to stop them from contacting you to, as well as how to report their activities to the Federal Trade Commission to prevent being victimized by abusive debt collection practices.

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