Debt collection calls up 150%, how to handle them: report

HOUSTON - Debt collection calls have shot up 150% over the last year nationwide, according to a NumberBarn analysis of data from the Federal Trade Commission.

Houstonians receive the fourth-highest amount of debt collection calls among major cities, with the average debt owed in Texas just under $58,000.

What to do when debt collector calls

What you can do:

When a debt collector calls, it's important to handle the call properly. We asked Thomas Nitzsche of non-profit credit counseling agency Money Management International for tips on how to navigate a debt collection call.

"In general, it's important to make sure the debt is legitimate, that you're not getting scammed. Ask for proof that you owe the debt. Check how long the debt has been outstanding. It's possible that you could pass the statute of limitations on the debt, in which case, you are no longer legally responsible for it," explained Nitzsche.  

The statute of limitations in Texas is 4 years, he told us.

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"So if it's older than that, you need to be extra careful. There are things you can do to reset the debt, like a promise to pay, for example, that can actually restart the clock," he said.

We asked what someone should say, or not say, so that they don't restart the clock.

"You want to begin the conversation with 'What is this about?'  Don’t give any information. Begin by asking for information. Ask for proof of the debt. Ask that they send you information in the mail about what type of debt this is, and proof that you actually owe it," Nitzsche explained.

When it comes to dealing with debt, he says you have several options.

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"If it’s unsecured debt, they’re usually willing to settle on it.  It’s often a good idea to save up money over time and offer a settlement, say half of how much you owe," he said.  

"For other types of debt, say medical debt for example, you may want to see if you’re eligible for charity care. If it has gone to a collection agency, sometimes they can retroactively apply that and pull it out of collections," he suggested.

A credit counselor can also help you deal with debt and set up a budget.  You can find reputable credit counselors through the National Foundation for Credit Counseling.