If you're under water with debt and not sure how to communicate with credit and collection companies, you can refer to the South Dakota Collector's Association (SDCA).
The SDCA released a list of commonly held 'myths' about debt.
Myth 1: Avoiding a debt collector makes the debt go away.
Communication with collectors can actually help stop calls or letters.
Myth 2: Consumers don't have rights in the recovery of past due accounts.
The collection of consumer debt is one of the most heavily regulated industries in the US. You can visit your local attorney general's office to find out your exact rights, as every case is different. You can also check out www.askdoctordebt.org.
Myth 3: All debt collectors are bad.
Credit counselors say debt collectors aren't 'bad.' They're trained to treat you with respect and professionalism.
"I think one of the best options is to come to a consumer credit agency so that we can help you come up with a plan of action, so you have an idea of how you're going to pay off the debt or what you can do to resolve the debt," said Preston Shaw, a consumer credit counselor of the Black Hills.
Myth 4: It is Boom Time for debt collectors.
Although the state of the economy has had an adverse effect on defaults and delinquency, the SDCA says, "the inability of consumers to repay rightfully owed debts trickles down to those charged with their recovery."
More than 30 million consumers nationwide have defaulted accounts under collection.