Why Credit Card and Medical Debt Peaks in the Rio Grande Valley at Year End—and How to Defend Against It

The end of the year is a stressful time for many families. They’re struggling with the financial strain of the holidays, the promise of increasing healthcare expenses in the coming year, and creditors’ efforts to collect as much debt as possible before the year ends. This makes a time that should be one of the happiest times of the year one of the hardest. If you’ve been targeted by debt collectors who seem willing to do anything to collect from you, it’s time to talk to a Texas debt defense attorney.

When debt is overwhelming you and you don’t know what your rights are, your choice of attorney makes a big difference. Attorney Dora Alicia Garza of Garza Law Office, PLLC has seen how hard debt collectors will push to collect on a debt and boost their year-end bonuses—and she knows you deserve better. Find out how our debt defense law firm can help you now by calling us at 956-329-1304.

Seasonal Spending and Financial Stress in the Rio Grande Valley

Household budgets are under intense strain at the end of the year. People may be rushing to use up their medical benefits before their deductible resets at the start of the year, but even when their deductible is paid, that often means high copays and percentage-based copays after the deductible is reached. On top of that, families may turn to credit cards to pay for holiday gifts. That, on top of past-due credit card bills and other emergency expenses that have piled up on credit cards throughout the year, mean that credit card collectors are going to come calling as New Year’s approaches.

Collectors’ Goals at the End of the Year

Unfortunately, this time of financial stress for families also lines up for the time of year that collectors ramp up their efforts to secure payments. Creditors want to resolve their delinquent accounts before closing their books for the year and selling debts in the new year. Debt collectors often earn bonuses based on how much they are able to collect from borrowers, which means that November and December are when they really put the pressure on to demand payment from consumers who are already at their financial limits.

They also understand the power of holiday stress and confusion. People facing credit issues are less likely to call a debt defense lawyer for help; they’ll try to get through the holiday season first and tackle their debt in the new year when things slow down. This gives creditors time to turn up the heat. They may even file lawsuits, knowing that people are less likely to keep track of court dates and other obligations in the holiday hustle. If a borrower misses a court date, that means a default win for the creditor.

Defending Yourself Against Collection Pressure

You do have tools that you can use, but many people don’t know their rights until they speak to a debt defense attorney. You are protected under Texas state law and federal collection law. Creditors have to go through several steps before they can legally collect on a debt, and even when they do collect, they have to follow certain limitations. These requirements include:

• Validating the debt when requested, which means proving that they are legally permitted to collect it
• Stopping collection efforts on time-barred debts
• Only garnishing up to state limits, which puts many borrowers’ assets and earnings out of reach
• Leaving exempt property

Debt collectors can only contact borrowers during a certain time frame and in legally permitted ways. They are also forbidden from engaging in harassing behavior, making legal threats unless they are genuinely prepared to file a lawsuit, and contact you in ways you tell them not to. With the help of a debt defense lawyer, you can hold them accountable for aggressive collection efforts and give yourself some breathing room to develop payment plans.

Explore Your Legal Options With Our Debt Defense Law Firm

If you’re ready to get your debt under control and put a stop to illegal collection efforts, let’s talk. Our debt defense law firm is here to help. Give us a call at 956-329-1304 or reach out online to get started.

Dora Alicia Garza

Dora Alicia Garza is a seasoned attorney based in Texas and the Founder of Garza Law Office, PLLC. She has built a respected practice across multiple areas of law, including criminal defense, family law, personal injury, guardianships & wills, estate planning & probate, immigration, debt defense and juvenile law. Learn more here.