We live in a credit-driven economy. When consumers purchase a home, an automobile or go on vacation they will likely use some form of credit as payment.

When the economy is strong and jobs are abundant, credit defaults are low. But when the economic cycle turns for the worse and unemployment reaches record levels, the pressure on consumers to pay their debts increases, and defaults are more likely.

As consumers we are required to pay our bills or debts as required under the contracts we enter. But despite our best intentions to do so, changes in personal circumstance could make that very difficult. When a consumer defaults on a debt, they will most likely be contacted by the creditor or a debt collector to collect on that debt.

The best advice I can give to borrowers is to communicate with the creditor as soon as you realize there is a problem. Most creditors will work with you to mitigate their losses. The longer you delay resolving the issue, the worse the situation and the consequences will become.

You may negotiate directly with the creditor/collector, or if you feel uncomfortable doing so, hire an attorney to act on your behalf. If you are contacted by a debt collector and you dispute the debt or any portion of it, you must notify the collector in writing within thirty days of being contacted by telephone or mail. The debt collector must then obtain verification of the debt or the court judgment and mail it to you. Additionally, the debt collector must cease all collection activity until the information is mailed to you.

In Massachusetts there are very specific debt collection regulations that pertain to both creditors and collection agencies. The Massachusetts Attorney General’s Debt Collection Regulations, 940 C.M.R. 7.00, prohibit unfair debt collection practices by creditors. Regulations of the Massachusetts Division of Banks, 209 CMR 18.00, prohibit unfair debt collection practices by debt collection agencies.

These regulations outline some very specific communication limitations from a creditor/debt collector to a borrower in default. Collectors cannot, for example:

Call you at home more than twice for each debt in any seven-day period or more than twice for each debt in any 30-day period at some place other than your home, such as your place of work.

Call you at work if you have requested that they not call. Your oral request that a collector not call you at work is valid for 10 days only. Written requests are valid until you write to the collector removing the restriction.

Call you without identifying both the name of the creditor and the name of the person calling. The caller may use a name other than his or her own, but the creditor or collection agency on whose behalf the call is being made must be able to identify that person.

Contact you directly, if you have told the creditor or collection agency you are represented by an attorney.

Use profane or obscene language.

If creditors/debt collectors violate these regulations, monetary penalties may result.

In these constantly changing economic times, consumers should give careful consideration to use of credit. While at times there may be no other option for necessities, putting the “nice-to-haves” on the back burner for a time is sometimes the best choice.

Michael Wheeler is senior vice president at Beverly Cooperative Bank.