• Credit cards are a major source of personal debt.three credit cards image by Aleksandr Ugorenkov from Fotolia.com
  
  High amounts of debt are an issue for many people, whether caused by medical bills, student loans, loss of income or overuse of credit cards. However, to protect consumers who are in debt, the federal government enforces the Fair Debt Collection Practices Act (FDCPA). This law governs the actions of debt collectors and makes it easier for people to manage debt.
  
  

Payments and Fees

• People who are in debt are legally obligated to comply with the original terms of their loan or credit account. This includes incurring interest, making minimum monthly payments and paying late fees when payments are not made, or are submitted after the due date. While many creditors offer refinancing options for account holders with high levels of debt, this is an optional practice.
  
  

Collections Calls

• While a debt is in repayment, the debt collector must abide by laws under the Fair Debt Collection Practices Act. This includes not making calls before 8 a.m. or after 9 p.m. In addition, debt collectors may not call a workplace to request repayment if the indebted person makes an oral request not to be contacted there.
  
  

Debt Attorneys

• Anyone who is in debt may hire a private debt attorney to help with the repayment process. Creditors are required to communicate through the attorney, rather than making phone calls or sending letters directly to the debt holder.
  
  

Validation Notices

• According to the Federal Trade Commission, the Fair Debt Collection Practices Act requires debt collectors to send a written validation notice to people from whom they are trying to collect money within five days of first making contact. This notice must include some basic information, including the total amount of debt, the name of the agency to which the debt is owed, and instructions for arguing the debt if any of the information is erroneous.
  
  

Debt Selection

• For people who owe more than one agency, debt collectors are legally required to apply any payments to whichever portion of the debt the person specifies. This allows payments to apply to debt with the higher interest rate, or to prevent late payment fees.
  
  

Wage Garnishing

• Being sued for debt is often the last step in a long collections process. Once someone has been sued for debt, he may have his wages garnished to pay what is owed. However, certain types of income are exempt from wage garnishing. These include veteran's benefits, Social Security payments, student assistance and military pay.