By YOUNG MONEY Staff
8 August 2011

Consumers who find themselves in problematic financial positions may end up dealing with debt collectors. These interactions can be difficult to maneuver through for those unprepared to properly analyze their personal finances.

According to the Sacramento Bee, it is entirely possible to navigate the treacherous waters of debt and work towards a solution with careful planning and knowledge of the issues at hand.

More and more individuals are dealing with debt collection due to the state of the U.S. economy. Robert Tavelli, owner of a private debt firm in California, states that about 6 percent of consumer debt is currently up for collection.

Collectors are attempting to negotiate deals between creditors and consumers. Unlike debt settlement firms, they are directly responsible to creditors and will not recommend delayed repayment, but they are willing to devise manageable payment plans in most circumstances.

Consumers undergoing this process are advised to speak reasonably with collectors for optimal results. Tavelli states those who are able to pay but refuse to may be sued for nonpayment.

Those who absolutely cannot pay can still consider solutions including credit counseling and bankruptcy. The Federal Trade Commission warns that those seeking to file for bankruptcy are legally required to seek credit counseling from an organization approved by the U.S. government within six months before filing.