There is no doubt that being in debt is a stressful situation for any person and family. The feeling of owing money and having to come up with payments can cause problems in many areas of your life. You may feel like you are falling behind without any way out of your predicament, and the feeling can be even worse when a debt collector is vigorously coming after you and breaking the law in the process.
You can always do something to improve your situation, and taking small steps to make progress in paying off your debt can give you some peace of mind. Small steps now can lead to more significant steps in the future when you begin to clear some of your debts with the highest interest rates.
Of course, you can file a lawsuit if anyone dealing with your debt has broken the law, such as debt collectors and other companies that try to sell your services. You may be eligible for financial compensation when a debt collector or anyone else has broken the law. Contact a debt collection attorney to learn more about your legal rights and whether you can hold someone else accountable for what they have done. They can make a significant difference in handling debt collection issues because they understand debt collection laws, which can be complex and confusing for the average person.
The Most Common Psychological Effects of Debt
Anxiety and depression are the two most common feelings that you may have when you are in debt. You are afraid of what the future may hold for you, and there may seem no way out when handling a mountain of debt. You may not feel like you have a financial future when you owe a lot of money to many companies. The feeling can be ever-present, and it can overtake your life. You may feel like you cannot live as you want because your circumstances will never change.
The gravity of the situation may cause hopelessness. Money woes are one of the most common causes of depression, and if you already have mental health issues, it is a near certainty that your debt will exacerbate them. 46 percent of people who are in debt will have a mental health diagnosis. Chances are that many of these people did not have mental health issues before they got into debt.
Depression will make it even harder for you to get out of debt because you may not have the confidence or initiative to do anything to improve your situation. When you are dealing with mental health issues, you may get stuck and unable to be proactive. It is often possible to better your circumstances, but you need the drive to start the process.
How Debt-Related Mental Health Issues Can Harm Other Areas of Your Life
The mental health impacts of debt can also affect other areas of your life. For example, disagreements about money are the root cause of many divorces. Couples can argue about their financial priorities, and these disagreements can be far more difficult when they are in debt while having collectors pursue them. Money is a contributing factor in 20-40 percent of divorces.
Not only does money cause fights, but the mental health impacts can also affect the marriage.
In addition, the mental health challenges from being in debt can also cause physical problems. Stress can result in several physical health issues, where you may be unable to sleep or properly eat, which can cause you to become sick One study found that, for every $100 increase in medical debt, a person suffered eight additional days of poor health.
Stress Can Cause You to Make Worse Decisions
One of the main problems is that the stress of debt can make your financial situation even worse. Because debt collectors constantly contact you, and your situation may feel hopeless, you can become more desperate. The panic may set in, and it can cause you to make additional mistakes that can cause your amount of debt to increase. You can end up in debt to even more aggressive parties, who can use questionable methods to try to collect. When you feel trapped and have no options, you can resort to extreme measures to get out of debt.
Debt Collectors Can Worsen Your Mental Health Situation
The feeling of being in debt can become far worse when there are debt collectors who are pursuing you. Many debt collectors use questionable and aggressive methods to shame or intimidate you into paying them. A debt collector wants to get you to pay so they can make money without taking you to court. The feeling of knowing that there is someone else pursuing and trying to pressure you can take away from your mental health.
Debt collectors know full well the effect their actions have on you. They want you to feel stressed out and nervous because they think fear is what will get you to pay them. Debt collectors want a “quick score” when they have purchased large amounts of debt, and they have won if you pay immediately and in total because you are afraid. There is not necessarily anything inherently wrong with what debt collectors do, but many of them will try to push you over the edge so you will pay the debt. Legitimate debt collection efforts will add to your stress.
Still, they are not illegal under the law because of a societal interest in creditors getting paid back the money people owe them.
Debt collectors will intentionally use tactics to try to play up and prey on your fear. When they see you are scared, they may try to pressure you. For example, debt collectors may threaten you with consequences if you do not pay the debt. They can tell you they will call your employer to inform them that you do not pay your bill. Alternatively, the debt collector may claim that you can face criminal penalties if you do not pay them, and they may even pretend to be a lawyer themselves or affiliated with one. Even though these tactics are illegal, the debt collector is banking on the fact that they can get away with it. When you hire a debt collection attorney, you will know your rights and be in a position where you can do something about wrongful conduct.
You May Not Have Asked for the Situation, But You Need to
Cope with It
In many cases, you did not ask to be in the situation you find yourself in. Several people who owe money had terrible luck, such as those in debt for medical bills. Others have caught a bad break, and they cannot pay the bills they already owe. Even if you just overspent beyond your means, it still can be highly stressful to be in debt, and the feeling of the walls closing in on you may be an ever-present one in your life.
Frequently, the stigma associated with being unable to pay your bills is the root cause of your stress. It certainly is challenging to fall behind on debt, and it may seem like you are less than others who can pay what they owe. While it is hard to tell you exactly how to feel in these circumstances, you should also know that being in debt does not make you a bad person. In fact, it makes you normal because nearly everyone owes money to someone and many people fall behind on their bills. The key is to collect yourself, take a deep breath, and know your rights under the law. It is also crucial not to make any bad financial mistakes that can compound your situation, such as withdrawing money from your retirement accounts to pay debt.
Federal and State Laws Place Limits on Debt Collectors
Debt collectors are not allowed to use any means necessary to collect the money you owe them. Federal and state laws limit the practices they can use in conjunction with debt collection. Sometimes, your sense of stress and desperation comes from aggressive debt collectors breaking the law.
If you have been a victim of illegal debt collection practices, you can and should fight back. Before taking legal action, you must know your rights under the law. Just because you owe money does not mean you have to put up with anything from the debt collector. Specific instances of conduct are plain wrong, and you can file a lawsuit against debt collectors. You can hold them responsible for causing stress when they break the law.
You Can File a Lawsuit Against the Debt Collector Under Federal and State Law
The Fair Debt Collection Practices Act (FDCPA) allows you to act independently to enforce the law through the courts. The law gives you a private right of action that will enable you to sue the debt collector directly. You do not have to wait for the government to take action against the debt collector to get justice because they may never do anything. You can file an individual lawsuit against the debt collector or initiate a class action case.
You can also file a lawsuit against the debt collector under state law. Each state has consumer protection statutes that often go even further than federal laws. Your debt collection attorney will advise whether it is in your best interest to file your lawsuit under state or federal law.
If you win your FDCPA lawsuit, you may receive the following in damages:
- Your actual financial losses from the debt collector’s illegal conduct
- The emotional distress that you suffered when the debt collector harassed you or otherwise broke the law
- Statutory damages of up to $1,000
- Attorney’s fees
Federal law does not allow you to recover punitive damages for an FDCPA violation. Some state laws allow you to receive these damages if the debt collector has acted egregiously. Debt collectors may even be willing to settle your case before it goes to trial because they know the court may treat them harshly.
An experienced lawyer can help you understand your rights under the FDCPA and guide you through the process of filing a lawsuit. They will thoroughly analyze your case, gather evidence, and build a solid legal strategy. With their in-depth knowledge of the law, they can identify any violations the debt collector commits so you can seek the compensation you deserve.
Intentional Infliction of Emotional Distress Lawsuits
When a debt collector crosses the line and engages in tactics such as constant phone calls, threats, lies, or public humiliation, it can take a severe toll on your emotional well-being. You may experience anxiety, depression, or even physical symptoms as a result of these actions.
Suppose the debt collector uses egregious and shocking tactics to cause distress. In that case, you can even file a lawsuit against them under the common law theory of intentional infliction of emotional distress. Here, the debt collector must have done something that was highly unacceptable.
Do Not Worry About Paying a Debt Collection Attorney
Money is not a worry when filing consumer protection lawsuits because a debt collection lawyer will never ask you to pay them for their time and services upfront. Even if you win your case, you often do not have to pay a debt collection lawyer because the defendant frequently must cover their costs as part of a settlement or jury award. If you do not win, you do not have to pay your consumer protection lawyer anything for their efforts. Additionally, they have experience negotiating with debt collectors and their attorneys, increasing the likelihood of a favorable outcome for you.
Debt collection harassment can cause significant stress and anxiety, impacting your overall well-being. By hiring a lawyer, you can ease some of this burden and place your case in the hands of a professional who will fight for your rights. They will handle all communications with the debt collector, allowing you to focus on your personal life without the constant harassment.