By Eileen Aj Connelly
AP Personal Finance Writer
NEW YORK—Most days when Janine Cain returns home from work, there are at least three messages on her answering machine. And she can expect more calls in the evening.
That isn't because she's popular -- the calls are from debt collectors. "We don't pick up the phone unless we know who it is," she said.
At last count, there were eight different collection agencies trying to track her down, the result of not paying her credit card bills since late 2007.
That was when the Cain family got hit from two sides. Her husband Paul started to see his construction work hours dwindle and was eventually laid off. What's more, the monthly mortgage payment on their Le Roy, N.Y. home rose by about $400. The hike could not be foreseen: it was the result of a miscalculation in their escrow payments that stretched back five years, not a risky unconventional mortgage.
But like millions of other people around the country, the Cains faced a Catch-22. "Do you keep your house, and keep the electricity on and keep the water running, or do you pay your credit cards?" asked Janine Cain who said that with fees and penalties, her credit card bills now add up to about $22.000. "Many people who have lost their jobs in the past few months are going to be faced with the same choice."
And like the Cains, many will be hearing from collection agencies as they try to grapple with their debts.
Read the full article here http://www.boston.com/business/articles/2009/01/30/know_your_rights_when_the_debt_collector_calls/