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!
Watch your credit card rates
December 10, 2008
Many people are suddenly discovering that the terms on their credit cards are changing, and you shouldn’t assume it’s only happening to “bad” consumers.
More and more credit card companies are increasing their interest rates, upping the amount of the minimum monthly payment due and increasing fees. This is being done rather arbitrarily. Customers who have always made their payments on time and in full are seeing these increases too.
Unfortunately there’s nothing you can do to stop the increases, but you can take steps to make sure you aren’t blindsided by the changes that could be coming your way.
First and foremost, open every piece of mail you get from your creditors. Your credit card company will send a notice informing you of the increase. However, many people see mail other than their monthly statement, assume it’s junk mail and toss it in the trash. Read everything.
Second, find out if there is an “opt out” clause for the higher rates. For instance, Citibank gives consumers the option to keep their card and take the higher rate, or opt out of the higher rate and use the card at the current interest rate until the card’s expiration date. At that time the card will be canceled.
Finally, pay down your credit card balances and try not to add any new charges.
In the current economic climate, a good offense is the best defense!
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