Debt guides

Short, sourced guides to the questions people ask most when debt gets heavy. Each one starts with a quick answer.

• Debt collector rights: what collectors can and cannot do

  Under the federal Fair Debt Collection Practices Act and the CFPB's Regulation F, a third-party debt collector must send you a validation notice describing the debt, must not harass you or lie, generally cannot call before 8 a.m. or after 9 p.m. your time, and must stop most contact if you ask in writing. Dispute within the validation period (at least 30 days) to make them pause and verify, and complain to the CFPB if they break the rules.

• Debt relief scams: red flags and safer options

  The biggest red flag is a fee before any of your debts are settled. Under the FTC's Telemarketing Sales Rule, for-profit debt relief companies that sell by phone cannot charge until they have settled or changed at least one of your debts and you have made at least one payment under that new deal. Also walk away from guarantees, pressure to stop talking to your creditors, and anyone charging for help with federal student loans, which is free from the Department of Education.

• Debt snowball vs avalanche: which payoff method fits you

  Both methods pay the minimum on every debt and put all extra money toward one target. The avalanche targets the highest interest rate first and always costs the same or less in interest. The snowball targets the smallest balance first, which costs more when your small debts have low rates but gives you quicker wins. If you will stick with either, the avalanche saves money; if motivation is the problem, the snowball can be worth the extra cost.