First of two parts

        Engulfed by debt? Hounded by creditors? You have rights and there are resources to help you.

        Often, people who have fallen behind in paying off credit-card purchases, mortgages or loans begin receiving calls or letters from third-party collection agencies.

        It's important to understand that the practices of these debt collectors are governed by the federal Fair Debt Collection Practices Act. The act covers personal, family and household debts including auto loans, medical bills and charge accounts.

        Here's what the act says debt collectors may not do:

        • Call you before 8 a.m. or after 9 p.m.

        • Talk to anyone but you (or your lawyer, if you have one).

        • Threaten to garnish wages or seize property, unless actually planning to do so.

        • Threaten to sue unless actually taking legal action.

        • Threaten you with arrest or jail.

        • Use obscene language.

        • Annoy or harass you with repeated calls.

        • Call you at work if you have asked them not to.

        • Lie about their identities.

        • Try to collect a debt that is more than seven years and six months old.

        The law does not release you from the obligation to pay those debts, but it can help you gain control of the situation as a first step toward reducing them.

        What debt collectors can do, should you fail to address the debt, is to take you to court and get a judgment that allows them to garnish 25 percent of every paycheck until the debt is paid. They can also place a lien against your property if it was used as collateral.

        That's why it's important to take debt-collection attempts seriously, while ensuring that the agents respect your rights. A collection call should be nothing more than a business call, but some collection agents are masters at making consumers feel angry or worthless, which can compound the situation.

        “The problem is that when people are getting these calls they feel out of control,” said Steve Rhode, president of Myvesta.org, formerly Debt Counselors of America. “The knee-jerk reaction is "I just want to make these calls stop!' rather than people taking a look at what caused the problem.”

        Myvesta.org, headquartered in the Washington, D.C., area, offers consumers advice and programs on financial health. Locally, Consumer Credit Counseling Service of Greater Cincinnati helps debt-plagued folks take a look at their spending and develop a plan for debt repayment.

        First of all, these experts say, it's important to understand that you're not alone.

        “The average American family has nine credit cards and $8,000 in credit-card debt,” said Mary Hurlburt, director of education for Consumer Credit Counseling Service, which is affiliated with the National Foundation of Credit Counselors. “We also believe that college students are dropping out in record numbers because of credit-card debt.”

        “Debt problems affect anyone and everyone,” said Myvesta staffer Jim Tehan . “One-and-a-half-million people filed for bankruptcy in the last 12 months.”

        To learn more, check out these resources for yourself:

        • Consumer Credit Counseling Service of Greater Cincinnati: (800) 355-2227. This nonprofit organization is supported by the credit community and by donations.

        • Myvesta.org, a nonprofit organization, bills itself as a financial crisis and treatment center. It offers publications and counseling programs for a small fee. Much information is available online at www.myvesta.org or call (800) 680-3328.

        Next Sunday: Tips for dealing with debt collectors; getting help in paying off debts; and establishing new spending habits.

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