Your Debt Documentary:
Be a Money Management Star
Imagine if you were to film a documentary of your own
road to financial freedom. We have developed a sequence of events that you or
others in the same situation may encounter. Below are examples of some topics
that could be covered in a 6-week documentary series.
Week 1: Don’t let creditors get the best of you. If cameras were filming you on a
daily basis, they may see you lose your temper with a collector. Although
persistent collectors may give you a reason to get upset, yelling and screaming
may only create more stress for you. Some creditors want to “press your
buttons” so you will become annoyed and pay your bill. If your caller
identification shows that it may be a collector, you always have the option of
not answering the phone and avoid starting a dialogue. Collectors do have to
abide by the laws of the Fair Debt Collection Practices Act (FDCPA). Contact
your debt negotiation company if you feel a collector was out of line.
Week 2: Never give up. You
may experience tough challenges as you strive to overcome your debt problems. A
documentary of your day-to-day life may show how you handle an unexpected
expense or how you manage a dwindling bank account when payday is still a week
away. Viewers may see how stressed or frustrated you are, but you can also show
them how you can conquer these dilemmas. For example, use the food in your
cabinets before buying a new order of groceries. Try calling your utility
company and ask for a more convenient due date. Settling your debts is not
always an easy goal to accomplish, but it is possible. Although you may want to
give up, try to stay focused on your ultimate goal of
becoming debt-free.
Week 3: Avoid temptation. People
that are tackling debt problems may be faced with constant temptation. Your
documentary can show viewers that you can avoid the allure of a great sale or
hold off on buying the next latest gadget. Merchants make it especially
difficult to avoid temptation in the current state of the economy. Many stores
are eager for consumers to spend money, so you may see enticing sales at many
retailers. Unless you have a planned purchase, try to ignore stores that are
having a “sale of the century.” Also, be careful of convenient online shopping
sites. It is easy to add more items to your shopping cart with a few mouse
clicks.
Week 4: Fix your financial house. Many
popular television shows focus on renovating, cleaning, and organizing homes.
Demonstrate to your viewers in your documentary how these ideas relate to your
finances. Keep your bills organized with financial software or a filing system.
Track expenses and review your budget to see if you can eliminate financial
“clutter.” For example, do you use your debit card a lot for dining out or for
small purchases? Are you able to reduce your cable or cell phone bill?
Week 5: Earn money by using your talents. If you are employed, the majority of
your documentary may be filmed at your job. One way to earn extra income to
fund your reserve account is to work overtime or a second job if it fits into
your schedule. Certain skills such as programming, writing, or data entry may
help you earn money doing freelance work or short-term assignments.
Week 6: Show your results. On your last episode, you can show
your fans how much your situation may have improved. Although debt problems are
usually not solved in six weeks, viewers can see how many good money-management
skills you have acquired. One way to continue your progress is to focus on
educating yourself about personal finance. Tell your viewers to visit
educational money sites such as www.bankrate.com,
www.dolans.com, or one of the web sites
listed below. You can also find many helpful tips in this monthly newsletter
and borrow books about personal finance at your local library.
Helpful
Web Sites:
·
www.Livingonadime.com:
The motto of this web site is “Making the Most of What
You Have.” You can find many money-saving tips on basic household expenses.
·
www.Smartmoneytips.com:
In addition to helpful articles about personal finance,
you can also take a “Financial Fitness Quiz” and access a budget calculator.
·
www.choosetosave.org:
This site is sponsored by the Employee Benefit Research
Institute and includes approximately 100 online calculators and a variety of
money-saving tips.
·
www.spendster.org:
This unique site allows visitors to blog or upload videos
about their overspending. It also has a calculator that will show how much
money was wasted over a period of time and the amount you could have saved if
it was invested. You can also read articles about how to curb impulsive
spending.
Inspiring Thoughts
As you may know, debt can have an impact on your
financial life. However, you may not realize how much this problem can affect
your health. According to WebMD (www.webmd.com),
an online health resource, worrying about debt over time can lead to
stress-related illnesses such as high blood pressure, diabetes, migraines, and
heart disease. Below are some ways that can help you reduce your stress levels
while you strive to settle your debts.
Get a good night’s sleep. The Better Sleep Council reports
that 65% of Americans are losing sleep due to stress and 16% claim that
worrying about personal finances is keeping them awake. Consider improving your
sleep habits by going to bed the same time each night and avoiding stimulants
such as caffeine and nicotine a few hours before bedtime. For
more tips on better sleep, visit www.bettersleep.org
and www.sleepfoundation.org.
Manage your anger. Collection agencies are calling
repeatedly. You just received your paycheck and barely have enough left after
paying the mortgage and utilities. Pipes in your bathroom are leaking and you
are trying to find some available funds to hire a professional plumber. One
stressful problem after another can oftentimes result in angry outbursts.
According to the American Psychological Association, excessive anger can cause
high blood pressure and depression. Anger is a natural human emotion that
should be expressed constructively. If you feel as though you
are going to lose your temper, try counting to ten or removing yourself from
the situation to collect your thoughts. Writing down your thoughts in a
journal may also help you release your anger in a non-violent way. For other
healthy ways to control anger, visit www.avoidingangerandstress.com.
Learn to say “no.” As you work towards settling your
debts, you may choose to take on a busy schedule. You may decide to work a
second job or volunteer for many overtime hours. Although these actions show
that you have a good work ethic and that you are dedicated, working constantly
may cause additional stress and may affect other aspects of your life. Consider
setting limits in order to maintain your busy schedule. Over a period of time,
excessive stress may cause burnout and make you become unproductive because you
are so mentally and physically exhausted. Commend yourself for making the effort
to become debt-free, but also remember to take some time for you.
Can you lower your property tax?
Global Insight, a company that analyzes and forecasts
economic trends, states that U.S. home prices fell at a fast pace during the
end of 2008, according to a study entitled, “Home Prices in America.” Because of the rapidly declining prices of
homes, the housing market is now undervalued. This data may not be a positive
step for the economy, but consumers that live in areas that have been affected
by the housing crisis may be able to reduce their property taxes. Below are some
steps to take if you want to question the value of your home.
Do your homework. Appealing
your home’s value may require you to spend time doing some research. It may be
worth the effort because the National Taxpayers Union estimates that as many as
60% of all homes are over-assessed and not in line with their actual value.
Despite this fact, only one in 50 homeowners tries to appeal assessments. You
can begin your research by obtaining a copy of your assessment records from
your local assessor’s office. The American Homeowner’s Association (AHA)
reminds homeowners that The Freedom of Information Act entitles homeowners to
have access to all documents regarding their property. You may be asked to show
proof of ownership to view the records. Try visiting the web site for your
local community. Some counties and municipalities offer online databases of
property records.
Verify your home’s
description. Once you obtain a copy of your
property assessment, ensure that all of the information is correct. According
to AHA, many property tax assessment errors are clerical. Appraisers are
usually on strict deadlines to assess many homes in a short amount of time and
they also do not go inside of your home. So, simple mistakes can happen. For
example, make sure your assessment lists the correct number of bedrooms, square
footage, and age of the home. Misrepresentation of these factors can affect the
value of your home.
File an appeal. If your assessment does not contain
any errors, you can still dispute the value of your home. Inquire at the
assessor’s office about how to appeal a property tax assessment. The process
may vary among local communities. In most cases, you will have to do more
research, which may involve gathering data on comparable properties in your area.
According to Consumer Affairs.com, it may help you to seek the advice of a real
estate agent or attorney to obtain the information that you need.
Before
making the decision to file an appeal, consider if it will benefit you.
Researching will help you determine if your home is actually over-assessed.
Keep in mind that winning an appeal will most likely lower the assessed value
of your home. This may reduce the amount of taxes that you pay, but may
negatively affect you if you plan on selling your home in the near future.
Free Tools on the Web:
Google Docs
(http://docs.google.com): If you have a
free Google e-mail account, you can also use Google Docs. This tool may be able
to handle your basic word processing and spreadsheet tasks. It is accessible on
the Web and it may save you from purchasing expensive software.
MIT OpenCourseWare (http://ocw.mit.edu):
OCW is MIT’s ambitious program to share course materials, which including
syllabi, lecture notes, assignments, and exams from about 1800 of the
Institute’s classes. All of these materials are absolutely free. You can not earn a degree or college credit, but it is a great
opportunity to expand your mind about subjects that interest you.
Podcasts (www.iTunes.com):
Podcasts could be described as the modern-day version of educational radio
shows. You can download the iTunes program for free at www.iTunes.com and
subscribe to an unlimited number of podcasts on a variety of topics. You do not
need to own an iPod or purchase anything from iTunes in order to subscribe to
the podcasts.
Spare
Change:
News,
financial tips, and other information regarding personal financial freedom
Protect your debit card
from thieves. As
economic conditions have worsened, there’s a noticeable increase in all types
of card fraud. People who create counterfeit ATM or debit cards by stealing
your PIN and other account data can simply pull cold cash from your bank
account. Using a technique known as skimming, they set up equipment that
captures magnetic stripe and keypad information when you put in your PIN at ATM
machines, gas pumps, restaurants, and retailers. The editors of Consumer
Reports Money Adviser offer three tips on how you can protect yourself:
• Don’t
type in your PIN at the pump. Gas pumps are notorious for skimming because
they’re produced by only a couple of different manufacturers. If you must use a
debit card, choose the screen prompt that identifies it as a credit card so you
don’t have to type in your PIN.
• Stick
with ATMs located at banks. Use machines at banks rather than in convenience
stores or any other isolated locations. A thief has to be able to attach and
retrieve a skimming device to see the data gathered, and that’s more likely to
happen in non-bank settings where there’s less traffic and no surveillance
cameras.
• Closely
monitor your bank accounts. Federal law limits your liability for fraudulent
debit-card charges to $50, but only if you report the theft or loss of your
card or PIN within two business days of discovering the problem.
Avoid refund anticipation
loans. In the midst of another tax season, consumer advocates
at the National Consumer Law Center (NCLC) are warning taxpayers to steer clear
of refund anticipation loans (RALs). New figures reveal that RALs drained the
refunds of 8.67 million American taxpayers in 2007 (the latest year recorded),
costing them $833 million in loan fees, plus over $68
million in other fees. RALs are bank loans secured by the taxpayer’s expected
refund and the loans last about 7-14 days until the actual IRS refund repays
the loan. According to the NCLC, that is a good indication of just how needless
most RALs are. Most taxpayers could have their refund in approximately two
weeks if they file electronically or have their refund deposited directly into
a bank account.
Speak out against overdraft
fees. The Federal Reserve Board is asking
consumers what they think of overdraft fees. The public has until a March 30
deadline to tell banking regulators whether a) banks should be required to let
customers “opt in” to these overdraft programs or b) be allowed to continue
automatically signing them up. The Center for Responsible Lending web site has
more information on overdraft fees and provides an easy way to comment. Visit http://ga3.org/campaign/no_gotcha_fees
for more information. To comment to the Federal Reserve Board directly, send an
email to regs.comments@federalreserve.gov.
Note that the subject line MUST include “Docket No. R-1343.”
Living Longer on Less
According to a recent study from the Senior Economic
Security Index, 1 in 3 senior households has no money
left over after meeting essential expenses. Seniors experience financial
problems primarily due to the cost of assisted living facilities, medical
expenses, housing costs, and dwindling retirement funds. If you are a senior
citizen that is in a tight money situation, or you know of one who is, keep the
following suggestions in mind.
Research organizations
and government agencies. Many organizations assist the
elderly in various aspects of their life. The Administration on Aging (AOA), a
division of the U.S. Department of Health and Human Services, helps seniors
maintain their independence by offering coordinated home and community-based
long-term care. Visit www.aoa.gov for more
information. The American Association of Retired Persons (AARP) is the leading
non-profit organization for people age 50 and older. Their web site offers a
wealth of information to help the elderly population. Visit www.aarp.org to read about pertinent issues
such as Medicare and Social Security.
Take advantage of
discounts and special programs.
Senior discounts are almost always available for expenses such as hotel rooms,
plane tickets, and bus fare. You may also contact your utility company if you
are having trouble paying your utility bills. Your state may offer special
low-income programs for seniors.
For discounts on prescription drugs, contact the
Partnership for Prescription Assistance (PPA). Eligible participations will
usually receive low cost or free prescriptions. For more details, visit www.pparx.org or call 1-888-4PPA-NOW.
Beware of scams. The Office of Community Oriented
Policing Services reports that the elderly population easily become victims of
a number of schemes. Common financial crimes against the elderly usually
involve home repairs, investments, telemarketing, false charitable
contributions, sweepstakes, and lottery schemes. Seniors should be very wary
about divulging financial information over the phone or online. If the deal
sounds too good to be true, it probably is. You may file a complaint with the
Federal Trade Commission (FTC) at www.ftc.gov
if you feel you or someone you know has been a victim of a scam.
Take advantage of the
recent stimulus.
Older Americans may see some benefits as part of the American Recovery and
Reinvestment Act of 2009. This legislation will offer a $250 economic recovery
payment for individual older persons and $500 for couples. According to the web
site for the Social Security Administration, recipients will not have to do
anything. Funds will be delivered in the same method that they receive Social
Security benefits. Retirees who do not receive Social Security may also
qualify, but may have to file a tax return. Payments are expected to be
disbursed in late May. Visit the Social Security Administration’s web site at www.ssa.gov/payment
for more information.
The
unemployed may also receive an extension and an increase in benefits as part of
the American Recovery and Reinvestment Act. According to AARP, the number of unemployed
aged 55 and older has risen 65% during the past twelve months.
UCAN
Corner:
A
Apex Law Group LLC (“Apex”) and the United Consumer
Advocacy Network LLC (“UCAN”) are pleased to announce that two consumers
prevailed as they came forward with their experience about collection
harassment. With the help of a FDCPA attorney in the UCAN-Apex attorney
network, two debt settlement clients received monetary compensation. Below are
specific details concerning a
A
·
“We are retained to file proceedings
against the two of you in County Court”
·
“We are contacting you voluntary
regarding two very serious allegations that have been issued…serious enough
that we were compelled by
·
“I’m scheduled to file the legal
proceeding with the court clerk either tomorrow or Friday”
The consumer proceeded to check with the local courts to
see if a lawsuit in fact had been filed against her since she did not recall
being served with a summons or complaint.
Much to her surprise and anger, no such suit had been filed. According to the FDCPA, collectors are
prohibited from saying that they are going to take legal action if they do not
intend to do so.
Outraged, the consumer promptly contacted UCAN. Upon
receiving and reviewing the consumer’s complaint about this collection agency’s actions, a
UCAN representative forwarded the matter to Apex for possible placement with a
FDCPA attorney. The matter was
ultimately referred to a UCAN-APEX network attorney who is an experienced
practitioner in debt collection abuse matters.
From the voice recordings and other information provided by the
consumer, the attorney was convinced that the actions of this collection agency
went beyond what Federal and State law allowed, and agreed to take the case on
a contingency basis.
As it turned out, the network attorney had previously
brought several successful actions against this agency for collection
harassment issues. The attorney swiftly obtained a settlement for the consumer,
which represents the maximum statutory recovery under federal law. In addition, the collection agency had to pay
substantial attorneys fees as part of the settlement.
As the above case study shows, it is important for debt
settlement clients to be proactive in their programs and actively look for such
things as voice recordings from collectors that seem over the line. With that
and the assistance of UCAN, Apex and the network attorneys, many more clients
will be able to turn a negative and stressful collection experience into a
positive one.
If you have any questions regarding any conversations
from collectors, feel free to contact us at 1-877-462-8226 or e-mail us at info@ucan.net. Our normal business hours are
Monday thru Thursday 9 a.m. to 7 p.m. EST and Friday 9 a.m. to 5 p.m. EST.