Respond to debt collectors with records and confidence: test your skills
You have rights: written validation, the right to dispute and the right to limit contact. Verify before you pay. Answer each question to see the explanation; your score appears at the end.
This test checks that you can
- Request validation of a debt
- Use your rights to dispute and limit contact
- Settle only with written terms
- Practice
1. First step when a collector contacts you?
- Practice
2. How should you dispute a debt?
- Practice
3. You are sued over a debt. You should…
- Key idea
4. Which statement best explains "Verify before you pay"?
- Key idea
5. Which statement best explains "Writing protects you"?
- Key idea
6. Which statement best explains "Never ignore a court notice"?
- Action plan
7. In the action plan, which step comes first?
- Mistake to avoid
8. Which of these is a mistake this lesson warns against?
- Mistake to avoid
9. Which of these is a mistake this lesson warns against?
A collector offers to settle a $3,200 debt for 45%. How much would you pay, and how much is forgiven?
Show the answer
Pay $1,440; $1,760 forgiven
$3,200 × 0.45 = $1,440. $3,200 − $1,440 = $1,760. (Forgiven debt can have tax consequences; check.)
If you have a collection notice, find the dispute deadline and write it in your calendar.
More tests in this bootcamp
- Judge debt by its purpose, rate and total cost
- Choose a debt payoff plan: avalanche or snowball
- Compare debt consolidation without missing the fees
- Use credit cards without carrying interest
- Understand what moves your credit score
- Check your credit report and question errors
- Protect your identity and know the recovery steps
- Respond to debt collectors with records and confidence
- Understand your student loan repayment options
- Compare car loans beyond the monthly payment
- Decode your mortgage payment: principal, interest, taxes and insurance
- Final exam: Debt and credit