Page 23 - Book1E

Use debt collectors to keep calling you. If you ignore your debts, your account will usually be turned over to collectors or lawyers, or be sold to professional debt buyers. Interest builds up and fees are charged. You can expect that collectors will start calling you on the phone, not just once in a while, but very often. Although the Fair Debt Collection Practices Act of 1996 protects you from abusive collectors, it does not prevent legal collection efforts.
Once creditors start reporting late payments to the credit bureaus, you may find that your bad credit will:
Keep you from getting the apartment you want. Landlords fre- quently check credit before renting. Bad credit can lock you out of the places you’d most want to live.
Raise your insurance rates. Many insurance companies use the data in your credit report to generate an “insurance score.” If you are considered a bad-credit risk, you may pay more for insurance, or you may fall outside of underwriting guidelines altogether and not be able to renew your insurance.
In short, having bad credit not only affects your finances, but your life in various ways. Having a negative credit history can affect the costs for your cell phone, electricity, and natural gas, and may affect your search for a job or even an apartment or it can lead to your being denied these services altogether.
Secured and Unsecured Debt
15