Don’t give up on your path to becoming debt-free
June 17, 2009
When you’re trying to work your way out of debt, it can sometime feel overwhelming.
I always viewed paying down debt and budgeting a bit like dieting. It’s really hard in the beginning. If you can stick with it, it gets easier and you can see progress. But, inevitably, at some point things level off and you feel like it’s a never ending task.
You start to get feel frustrated. You want to see more progress. You’re tired of “being good” and sticking to your diet. You long for a Burger King Whopper or a new pair of shoes.
That’s when a diet (be it a food diet or a debt diet) can really get derailed. That’s also the time not to give in to temptation and to keep moving forward toward your goal.
If you’re in the process of paying off debt, take a moment to look back and see how far you’ve really come. Remember your goal and why you’re on the path to that goal.
It’s also a good idea to look for inspiration. You’re certainly not alone when it comes to trying to become debt-free. There are many, many other people out there who are facing the same struggles and frustrations.
Check out this story about a freelance writer’s path to paying back $50,000 in debt if you’re looking for a little inspiration and encouragement.
False advertising: There is no “federal debt relief plan” for consumers
April 27, 2009
If you get an offer in the mail of a “federal debt relief” plan, throw it away.
Consumers are receiving a mailing — with a return address of
WTAE News in
You can read and see a video of that story here.
As of now, there is no federal debt relief plan for consumers facing credit card debt.
Anyone who struggling with debt should contact a non-profit credit counseling agency that is affiliated with the National Foundation for Credit Counseling and is in good standing with the Better Business Bureau.
Avoid any company that initiates contact with you, charges large upfront fees and is not a non-profit.
Know your rights if you’re contacted by a debt collector
March 4, 2009
It is always important to know your rights when it comes to debt collectors. Unfortunately right now it’s even more important. It seems that debt collectors are going to new levels to collect money from individuals who don’t even owe them money.
A friend of mine e-mailed me this week about a situation she is facing with a debt collector. A debt that she does not owe was turned over to a collection agency. When she received the collection notice, she called the collection agency and explained that it was not a valid debt.
The debt collector then proceeded to tell my friend it would just be better if she paid them so that it didn’t end up on her credit report, and she could continue to dispute the original debt with the company that turned her over to collections.
This was nothing more than a scare tactic to try to get her to pay money she doesn’t owe.
I thought that was pretty smarmy until I read an article in the New York Times today about debt collectors going after relatives of deceased people who passed away leaving debt behind.
In many cases when a loved one dies, the family is not obligated to pay off his or debts, especially out of their own pockets. There may be cases where a debt collector would have a legal right to go after the deceased’s estate. But, this story details practices that are down right wrong and manipulative.
If you are contacted by a debt collector, ask for verification – in writing – that the debt is yours. If you are contacted regarding debt left by a deceased loved one, take some time to find out if you are legally obligated to pay the debt.
The Fair Debt Collection Practices Act outlines your legal rights when it comes to dealing with debt collectors.
Financial New Year’s Resolutions
December 31, 2008
Happy New Year!
It’s hard to believe that 2008 is over already. What a crazy year 2008 has been in many ways, not least of which in terms of the economy and people’s finances.
Advantage Credit Counseling Service celebrated its 40th year in business. And it turned out to be one of the busiest years the agency has had as we’ve continued our work to get people on the road to paying down their debt, managing their budgets and saving money for the future.
Many of us make New Year’s resolutions. But this year it’s really important for all of us to make more than just a resolution to do better with our finances. It’s important for us to make lifestyle changes when it comes to money. Consider it a financial diet.
Like any diet, it may be difficult in the beginning. It will get easier as you go along.
Here are the three ways to kick start your financial resolution for 2009:
· Create a budget. If you already have a budget, review it and see what adjustments should be made.
· Make a pledge to quit using credit. Operate on a cash only basis. If you charge something, pay it off as soon as the bill comes.
· Build up your savings. Most experts recommend having an emergency savings equal to at least three months of your salary. That can be a daunting amount of money to save. Instead, try setting a savings goal that is within your reach and not so intimidating. Even if you can only put $10 a pay into a savings account, it’s a good start.
And remember, if you need help creating your budget and managing your debt, you can always call the certified counselors at Advantage CCS for help.
Was the holiday a budget buster?
December 23, 2008
Hello readers. I’m about to take a mini-vacation for the holiday.
I would love to hear from you about how your holiday went and how your finances were impacted by holiday festivities.
My husband and I pledged to reduce our spending this Christmas. I have to tally up the final numbers, but I think we succeeded in spending less this year. I will admit that we probably still ended up spending more than we should have, but hey, it’s a start.
When I talk about spending on the holidays I don’t just mean gifts. I’m talking meal and baking costs, cards, alcohol, charitable donations, travel costs … the whole package.
Did you set a budget for your holiday spending? Did you cut back on gifts? Did you tweak your holiday festivities to be more financially friendly?
Until next week Merry Christmas and Happy Holidays to all!
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