Here are 5 immediate steps you can take to calm the storm and regain control:

1. Step Away from the Phone. The first instinct is to answer every call from a number you don’t know. Don’t. Unofficial calls from debt collectors can be harassing and often contain misinformation. Your first step is to stop engaging with them on their terms. This buys you precious time and headspace.

2. Open the Envelope, Not Your Wallet. Resist the urge to make a rushed payment, even a small one. First, carefully read the legal notice. Don’t let the scary legal jargon confuse you. Look for three key things:

• The sender (is it a bank, a law firm, or a third-party agent?)
• The amount being demanded (the principal amount and the interest/penalties)
• The deadline (how much time do you have to respond?)
  
  

3. Find Your “Golden Documents.” These are your original loan agreement and any previous correspondence. These documents are your proof. They will tell you exactly what you agreed to and what the terms of the loan were. You need to know what you’re dealing with before you can fight it.

4. Get a Professional Opinion. Just as you’d go to a doctor for a medical emergency, you need a legal and financial expert for this. A professional can tell you if the notice is even valid, what your rights are, and what the best course of action is. Don’t rely on advice from a friend who “knows someone.” Get help from a real expert.