Rampant consumer debt in America has led to unmanageable debt problems for many of us. Once we fall behind on our payments, the phone starts ringing and the threatening letters start showing up at our front door. Credit card companies have the right to pursue payment for outstanding debt, and although they are a last resort for these companies, lawsuits seeking repayment of debts is a very real possibility.

See below for the top 4 ways to avoid lawsuits from your creditors:

1.  Use Your Credit Responsibly: This may seem like obvious advice, but it still needs to be said. Live within your means, maintain an emergency fund in your bank account, only buy what you can afford, and use cash for everything to avoid getting in hot water with your credit card debts.
2. Make Your Monthly Payments: Even if you can only make the minimum monthly payment, send a check every month to keep the wolves at bay. Sometimes a creditor will begin harassing you after only a single missed payment, so make sure you don’t give them the chance. If you find yourself unable to make the minimum payment, call the creditor, explain your situation, and send what you can. This way, the creditor is at least getting some repayment on the debt, making it unlikely that they will move forward with a lawsuit.
3. Recognize a Growing Problem: If your debts are stacking up and you are having trouble making the minimum payments, sound the alarm bells before it becomes a bigger problem. Stop using your credit cards, set a monthly budget that will assist you in repaying the debts, and stick to the plan.
4. Get Help: If you are far behind on your payments and see no way to get yourself out of debt, consult a debt settlement professional. These credit experts will help you setup a program for repaying the debts on your own schedule and budget. Debt settlement professionals also negotiate with creditors on your behalf, settling your outstanding accounts for a fraction of the original amount.

Lawsuits from creditors can be a frightening possibility.  Protect yourself by following these simple guidelines.

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