Only Pay Your Debts Once

When you borrow money, you probably intend to pay it back. Unfortunately, sometimes things don't work out and people sometimes default on loans.

If you've ever defaulted, you may have gotten reminders about your loan over the years -- debt collectors can try to get you to pay loans that your original lender gave up on. They have to follow certain rules in the process, but sometimes things get messy. In some cases, the mess is so bad that you may have multiple collectors pursuing the same debt.

Marketplace Money shares the story of Harold Wood, who dealt with 15 collection agencies going after the same loan at once. Wood wanted to repay his loan, but he realized he'd end up paying the same debt over and over.

If you're working with debt collectors, get all the details about your accounts. Don't assume that they have perfect records because you may end up paying more than you ever owed.