What to do if you get a letter from a collection agency

Receiving a letter from a collection agency can be daunting, but there are steps you can take. First, verify if the debt is yours and dispute any errors. Use resources like the CFPB for guidance. If the debt is valid, negotiate a settlement based on your financial situation. Be aware of the statute of limitations, which affects your legal obligations. To prevent debt collection, communicate with creditors early to arrange manageable payment plans. Taking proactive steps can help maintain your credit score and financial health.

What new insight or understanding did you gain from this video?