The Power of CashWritten by Kelly Cullison
Recognizing psychological power of cash has changed this client’s way of thinking and helped her realize true, measurable results in her efforts to eliminate debt. Here’s how.... Five months ago, Jennifer* came to me with over $32,000 in debt. She was barely able to make her monthly minimum payments, and was charging groceries and other necessities on her cards. After we reviewed and discussed her situation, she realized she was at a critical point where failure to take action would ultimately lead to bankruptcy. Jennifer asked for my help to eliminate her debt and guide her through budgeting process. Today, just 5 months later, Jennifer has made tremendous progress: [] She has not placed ANY more charges on her credit cards. [] She has created and continues to live within a budget, which we monitor weekly. [] With help of a debt reduction plan, she has reduced her debt by 9%, to just over $29,000. She will be completely debt free in 3.6 years. [] She feels a sense of relief whenever unexpected expenses occur, since we’ve managed to set aside an emergency fund. Before Jennifer could realize any success with her debt reduction plan, she had to get her current spending under control. A key part of Jennifer’s success lies in recognizing power of cash. Jennifer had become accustomed to paying for everything with plastic or by check. When we created her budget, we built in a weekly “allowance.” Jennifer’s allowance covers all recurring expenses that are not regular bills: groceries, gas, entertainment, etc. (Healthcare, car maintenance, and other irregular expenses are covered by her emergency fund.) Jennifer takes her cash allowance out of bank each
| | Stop Debt Collectors Cold and get Back on Your Financial FeetWritten by John Ventura, Gerri Detweiler
As a consumer law attorney who counsels people with debt problems, I’ve heard my share of horror stories about debt collectors. For example, a college student client was threatened that she’d be arrested if she did not pay a credit card debt, and another client was called 12 times in one day at work about a debt that was 14 years old. If they knew their rights, these people could have avoided emotional stress they experienced at hands of aggressive debt collectors. This article provides you with an overview of those rights so you don’t have to suffer like my clients did. You don’t have to put up with abuse from debt collectors! Despite what they may tell you, debt collectors cannot put you in jail, make you lose your job, or ruin your credit forever if you don’t pay a debt. The federal Fair Debt Collection Practices Act (FDCPA) sets very strict limits on what debt collectors can and cannot do. Those limits include when they can call you, what they can say and what they can do to collect a debt. The FDCPA in a Nutshell The FDCPA applies to outside debt collection agencies, but not to creditors collecting their own debts. However, your state may have a law that applies to in-house debt collectors. Call your state attorney general’s office to find out. Among other things, FDCPA says that debt collectors cannot: · Lie to you, use racial slurs or insults, or threaten you with violence. · Call you repeatedly, or call before 8 a.m. or after 9 p.m. · Call you at work if you've told them you can’t accept their calls on job. · Contact your employer about a debt unless debt collector is trying to collect past due child support payments from you. · Tell others about your debt. · Garnish your wages without taking you to court first. · Make false statements, such as telling you they will ruin your credit “forever”. They can’t. You have right, within 60 days of first being contacted by a collector, to ask for written proof of debt, and debt collector must provide it. Be sure to ask for proof if there is any question that you owe a debt or if you need time to figure out how to pay a debt you know you owe. Keep careful notes regarding each conversation you have with a debt collector, and copies of all correspondence to and from collector. These records will be helpful if you need to sue a debt collector.
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