So you finally got some extra money, and made the decision to spend it wisely, now the next logical question is where do you put it? Naturally, you want to put it towards improving your credit score, which will make your life a lot easier for you. Paying off your debts will improve your credit score, but which debt do you pay first? Consider your debts. You have two kinds. Secured debts, debts with assets backing them up, are debts that can result in your things being repossessed or taken back. These include your home and your cars.

Unsecured debts are those with no assets backing them up. If you fail to make a payment on your credit card, the bank isn’t going to come to your house and take back the shirt you bought at the mall. A debt collector might call, but the credit card company is not going to take away your place of residence or your transportation to work.

This means that your secured debts have to be your number one priority. Consider debts that if you don’t pay your wages can be garnished. These include IRS debts, any child support payments, and student loans. If you don’t pay these, your paycheck is at risk.

Any services that you need to continue using are important as well. If you aren’t paying your doctor bills, that one doctor is not going to see you again, which can be a real issue if you have to see that doctor on a regular basis. Once you have satisfied all of the urgent debts, you can start to really work on making headway with your credit cards.

Hopefully, your family and friends are the most understanding out of all of your creditors. Let them know you are totally committed to repay the debts but make them a lower priority. Work on improving your credit report mostly for now. This is because the higher your credit score, the lower your interest rates will be when you are paying back all of your creditors, and that includes all of them- credit card companies, auto lenders, and mortgage lenders. A high credit score can make a high payment as small as possible.

Mallory Megan works for Rapid Recovery Solution and writes about medical collection agencies

When and how does bill collection cross over the line into harassment and aggressive behavior? A bill collector is never allowed to use obscene language or threats of violence. However, they are allowed to insult your integrity and make you feel bad about the person you are.

Anecdotal stories about collectors asserting that a debt cannot be negotiated, settled or paid off more slowly have been circulated. Collectors have been known to rudely ask when a debtor is going to pay, and then reject a debtors offer as not enough. This is not true or acceptable, as a consumer you always have the ability to negotiate.

Debt collectors work on commission which is why the persistent ones can be so aggressive and hostile. But the key point is that, despite that you may owe money to a creditor, you always have the right to be treated like a professional. Even though collectors are prohibited from calling third parties such as co-workers, friends and family to spread the word that you are in debt, collection agencies are allowed to contact people who may know where you are if they are trying to find you.

Debt collectors especially are banned from threatening you with jail time,it has become a common tactic used by unethical agencies to intimidate immigrant communities. Finance experts such as Michael J Koopmans agree it is because there is less of a chance that these people will know or understand the law.

A bill collector cannot call you repeatedly, which technically means that they can’t continuously call you over and over. Despite this fact, that does not stop them from calling you two, three, even four times a day. With some companies, bill collectors are given a small number of accounts to work with purposely so that they can badger a consumer in debt into paying for their commission. To put a stop on collections phone calls, you are able to send a letter by certified mail return receipt requested requesting that they no longer contact you by phone.

Mallory McGuinness is employed by a debt collection company. Also she composes stories on business, finance, consumer spending and collection agencies.

It is true that Americans with overdue debts will typically be subject to a number of retributions. Collection letters, phone calls, unfavorable credit scores and a chance to wind up in court are examples of punishments for non-compliance.

An alarming new trend that is growing is debtors suing debt collectors first. Any violation of the Fair Debt Collection Practices Act is reason to take a collector to court. It may be true that in a declining economy suing a debt collection agency instead of paying off what you owe may be your only choice. There were 8,347 consumer lawsuits filed against collection companies in 2009. That’s a 55 percent increase over 2009 and double that number filed in 2007.

A few debtors are plaintiffs suing for their first time; the people who suddenly find themselves unable to pay debts and feel that they have been wronged by aggressive collectors. Others compulsively sue, typically these people have debts worth tens or hundreds or thousands of dollars. It is their hope that favorable judgments may put them on a “collections blacklist.” If he has sued 4 out of 5 debt collectors, debt collection agencies are probably going to want nothing to do with this strange character who puts time and effort into lawsuits when he could be looking for a sense of structure, and a job.

One example of a lawsuit in action was from a woman who complains that the collection agency never offered her proof it was entitled to collect. Seriously? Most debt collection companies do their best to make sure that their collectors adhere closely to FDCPA laws, but even that law is not clear on certain practices such as whether it’s legal or not to leave a voice mail. Basically, the FDCPA hit the scene in the 1970s and needs desperately to be updated to today’s technology.

I guess you didn’t ask for my opinion, but here it is. I was recently contacted by a debt collector who left a message on a third party phone, asking for me and letting me know she intended to collect a debt. This is a big no-no. I could have called her back and given her hell, but I know why I have the debt and even though I may be broke, I intend to pay it back. To me, it seems like the economy is not getting better any time soon as the number of people who refuse to hold themselves accountable for financial decisions they made in the past grows. I hate to say it, but a debt is a debt, whether we are in a recession or not.

Mallory Megan works for a debt collection company. She also writes articles on business and finance, consumer spending and debt collection