Dear Dave, I’m on Baby Step 2. I’ve paid off almost all my debt, and I’m living on a monthly budget. Recently, I got a call from a debt collection company about an old medical bill. They threatened to garnish my wages, and from the way they talked, I’m afraid they may actually do it. How should I handle this situation? Gwen Dear Gwen, First of all, they won’t garnish your wages. They can’t. For that to happen, they would have to go through all the formal, legal steps of suing you, and then they’d have to win the case. Debt collectors like to play with people’s emotions because, many times, folks will give in and do whatever they want—whether they can afford it or not. The worst thing you can do in these situations is react with panic or fear. Talk to them calmly and rationally, and explain your …