Let’s talk about history. No, we’re not talking about one of your classes in school ― we’re talking about credit history. When you take a look back into your credit history, it doesn’t just include your credit card transactions. It includes your rent payments, utility payments, loan payments, and more. Just like working out in a gym, you want to build strength in your credit history. Just as going to the gym just a few times won’t have you toned instantly, establishing a healthy credit history takes time, energy, and effort.

Most people don’t plan to have problems paying their bills. Rather, falling behind on bills is often a result of undisciplined spending, credit overextension, and unexpected financial problems.  Look at the statistics on this chart that illustrates why people don’t pay their bills.

So, how do you know if you are headed toward credit trouble? People with credit repayment problems usually exhibit the following behaviors:

• They can only pay the minimum payments, if anything, on all of their bills.
• They constantly stress out about money.
• They do not know how much debt they have at any given time.
• They regularly pay their bills late, and “float” checks to cover bills.
• They use credit or loans to pay their bills.
• They have to work overtime or moonlight to make ends meet.
• They continue to spend money rather than living within their means.
• They fear job loss because it would create immediate, serious financial problems.

Let’s say you slow down on your payments and can’t make them on time or can’t pay them at all. Just as you have rights as a consumer, creditors have rights to attempt to collect the money you owe. Laws exist to protect you as a consumer from unfair or harassing treatment by creditors, also know as the Fair Debt Collections Practices Act (click here for a brief summary).