When James Reinhardt’s phone started ringing over and over, he thought it was just a temporary annoyance — maybe a billing question or a stray spam call. Instead, the calls kept coming, day after day, each one a reminder that something had gone sideways with his plan to get ahead of his credit card balances.

Like many Americans trying to take control of their finances, Reinhardt told CBS News Pittsburgh that he believed he had signed up for a debt consolidation program that would simplify his payments. What he later realized was that he had enrolled with a debt settlement company, a move that can involve stopping payments to creditors so accounts fall into default before negotiating reductions. The result was a barrage of collection calls that left him feeling overwhelmed and unsure of what to do next (1).

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His story lands at a time when complaints about debt collection calls have surged nationwide – up nearly 200%, according to federal data — reflecting both rising debt levels and widespread confusion about how debt relief programs work. For many households already stretched by higher interest rates and living costs, the experience can feel like financial quicksand (2).

Reinhardt said he thought he was being proactive by trying to consolidate the credit card balances as they crept up. But the collections calls just worsened his stress.

“As much as I blocked it, it felt like cockroaches,” he told CBS News Pittsburgh.

Credit counselors say this scenario is common. Debt settlement firms typically charge fees that can run 15% to 25% of the balance you owe, according to the National Foundation for Credit Counseling, and letting accounts lapse can cause significant credit damage (3). According to a financial expert who spoke to CBC, consumers may see their credit scores fall by as much as 100 points during the settlement process, while late fees and interest continue to accumulate.

The Federal Trade Commission logged more than 400,000 complaints related to debt collection calls last year. Many consumers report repeated contact, difficulty verifying debts, and confusion about their options, especially when multiple collectors become involved (1).

Related: A realistic exit strategy for credit card debt

The surge in complaints comes as overall borrowing reaches new highs. Total U.S. consumer debt climbed to roughly $18.3 trillion in 2025, according to Experian, with the average consumer carrying about $104,755 across mortgages, credit cards, auto loans, and student debt (4).

Monthly payments are rising as well, averaging around $1,224 in 2024, a figure that underscores how debt obligations can squeeze household budgets (5).

When an account enters collections, the financial consequences can escalate quickly. Since credit scores typically decline, that means borrowing costs may increase, or your access to credit could be limited all together. Unpaid debts may be sold to third parties, creating uncertainty about who owns what account and how to pay what’s owing.

In more severe cases, creditors may pursue legal action that can lead to wage garnishment or bank account levies, depending on state law. Beyond the numbers, the emotional strain of persistent calls and financial uncertainty can weigh heavily on your mind.

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Consumers have clear protections under the Fair Debt Collection Practices Act (FDCPA), which outlines what collectors can and cannot do.

Collectors are prohibited from calling at unreasonable hours — generally before 8 a.m. or after 9 p.m. — and cannot harass, threaten, or use abusive language. They are not allowed to discuss your debt with friends, neighbors, or coworkers who aren’t responsible for the account. Upon request, they must provide written verification of the debt (6).

If you receive collection calls, start by confirming that the debt is valid. Ask for documentation and review it carefully before making any payments. Keeping a log of calls and correspondence can help if disputes arise.

If you suspect violations, you can file complaints with the Consumer Financial Protection Bureau or your state attorney general’s office (7). Sending a written request asking a collector to cease contact can limit communications, though it of course doesn’t eliminate the debt itself.

From a practical standpoint, working with a nonprofit credit counseling agency can help you explore structured repayment plans or negotiate lower interest rates. Strategies like prioritizing high-interest balances or paying off smaller debts first can provide a path forward.

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CBS (1); Fox Local (2); National Foundation for Credit Counseling (3); Experian (4, 5); Federal Trade Commission (6); Consumer Financial Protection Bureau (7)

This article provides information only and should not be construed as advice. It is provided without warranty of any kind.