This country's credit card users are entering an era where they are facing increasingly serious debt collection issues. A debt reduction program should be considered sooner and not later. You should be asking yourself if you are using in excess of 30-50% of your available credit. You should also be aware of being in danger of missing a payment. This is a sign that you should be headed to the nearest licensed debt counseling agency. Here are some alarming situations that may affect you if you wait too long to become enrolled in a debt management program.

In the past, once credit accounts had been charged off it was still possible for debt counseling agencies to have them recalled through the original creditors' debt management department. Now the accounts are being sold to collection agencies and are not able to be recalled because the original creditor no longer owns them. This leaves you with the option of debt settlement or bankruptcy. Both of which are devastating to your credit rating.

Let's consider the Fair Debt Collection Practices Act. This basically states your rights as a debt holder once your account is in the hands of a third party collection agency. It states guidelines for how often and when the collection agency can contact you, among other things. The original creditor, also known as a first party collector, does not have to abide by the Fair Debt Collection Practices Act. If your account is sold to a collection agency they now own the account and have the right to call you whenever and as often as they want.

In the past, when charged off accounts were sold to collection agencies, they harassed you until you learned your rights and then ruined your credit for seven years. It has been reported that clients that have been dropped from debt management repayment programs due to the inability to pay, have experienced having the wages garnished as payment on these outstanding consumer debts. This is a new trend in debt collection and once a trend is introduced into the credit industry, it eventually becomes mainstream.

Credit accounts are being charged off earlier than ever before and creditors are becoming much tougher when it comes to debt counseling programs. Some creditors will allow you only one chance at the program. More and more finance organizations are dropping consumers from debt counseling programs if their payment is not received within 45 days.

With all that being said, if you see yourself headed for financial difficulties you better find the nearest reputable consumer credit counseling agency, quickly.