Every now and then I like to see what people are looking for that brings them to this site. I hope to bring a solution to the problems if the searchers should look again. In the meantime, enjoy!

Q1 Creative things to do with dust bunnies? – I haven’t found anything pertaining to dust bunnies in particular, but I did find some nice tips on what do with lint.

*  Make artwork from the lint -Mix 1/2 cup of flour with 1 cup of Sta-Flo liquid starch, then add to dryer lint as needed to form shapes on a piece of plywood. Continue adding various shapes and colors, mixing with the Sta-Flo recipe as needed for the right texture. Allow to dry thoroughly, spray with sealer
*  Fire kindling in the winter or save a bag full to use outside to get the grill going
* Homemade lint paper and clay - (planetpals)
* Draft reduction – cram the lint in holes by your windows and doors
* Use as filler for pillows, blankets, etc

Q2 Can you give me hair tips how my hair can be as long as the Spanish? - This is a good question. I assume that long, strong hair is essential to many, no matter what country they come from. Unless you are already follicularly challenged, here are some starters to getting long hair.

* Patience - hair grows at 1.25 centimeters or 0.5 inches per month
* Keep your hair trimmed- broken ends will leave your hair weak
* Get circulation to your head by massaging it regularly
* Eat right – Food rich with vitamin A (dairy products, fish, spinach, apricots), vitamin B (meat, fish, bananas, leafy green veggies), vitamin C (citrus, melon, tomatoes and potatoes) and vitamin E (nuts, broccoli, whole grains)
* Relax- stress causes a loss of hair beyond the usual amount you drop in a day.

Q3 I’m burned out on frugal living, what can I do? - Don’t I know how you feel. Sometimes it just stinks having to see advertising for things that you want and can’t get. Impatience doesn’t get you very far, unless you are in a hurry to get to bankruptcy court.
Frugal living is a lifelong journey and that means we all have good days and bad, but we keep in mind why we do it - for a certain end goal that is unique and inspiring to each of us.

So this is how I do it, when I get burned out on this frugal thing, I take a week off and try not to be hard on myself. But, I also tell myself come the next week I’m back on the bandwagon and I’m going to go at it with all I can. Over time it will become second nature and you won’t feel as burned out because it will be a part of who you are.

Q4 What herbs will rid you of debt? - I know people go to herbs for a lot of different things health wise, but this one stumped me. After some searching I found a few ways you could attack this.

* Small oranges or kumquats hung around your home, threaded with cloves is “a way to draw money to yourself, fast.” (note: Please don’t sue me if this doesn’t happen, as I have no oranges hanging that would give me any money to pay you.)

* If you just need a specific amount of money for one venture or debt, write the figure in the wax of a green candle with a quartz crystal. Anoint the candle with vegetable or cinnamon oil and roll it in basil. Light the candle, meditate on the need, and let it burn out completely, putting it in a safe place (like a bathtub) if it will be left unattended.


* Create a money tree. Hang pieces of paper naming your current bills (food, rent, entertainment, insurance, whatever) on the different branches,and anoint each branch with ginger.

It actually sounds like you may just need a moment to de-stress - so here are a few herbs that would help with that:
Chamomile or Peppermint
For tight shoulders, use Valerian, which will also help with occasional insomnia.
Feverfew and Willow bark will help with tension headaches and stress-related migraines

Once the stress is gone it is time to take a look at why you have debt and figure out how you can stop creating more and get rid of what you have. In that case you may want to start with these 5 motivations for debt reduction or read these articles on debt.

A friend of mine emailed me to go over her student loan payments, she had been paying without fail and one of the loans hadn't been going down very fast. The second loan was going down, but she wanted to get rid of it as quick as possible, thus the reason we were going over her loans.

Flickr/CC - YuvalH

 One loan was around 5 grand and the other was just under 2 grand. Sadly, these loans couldn't be consolidated. She was also frustrated with the fact that she would be paying a higher interest and she wasn't sure how that affected her.

On the 5k loan, she was paying just over 60 dollars, of that, we found that about 2/3 was for the principle. At this rate her loan was going to take 11 1/2 years to pay this back. Even if she paid every two weeks, that would only save her 18 months. She wanted to do better.

After figuring what she could afford she decided to go with 90 dollars, which will cut down her time in payments to just under 7 years. Not great, but better.

As for the other loan that is just under 2k, she was paying about 55 dollars - this was going to take about 3 1/2 years to pay off. For this little loan, she figured she could up the amount to 75 and that would cut back on the time to 2 1/2 years.

In the end she added 48 dollars to her monthly loan payments, shaved off 5 1/2 years of payments and interest. She also plans on putting any extra money from taxes or bonuses towards the smaller loan and when that is paid off, roll the payment over to pay off the larger one.

Now she isn't as depressed and can see the light at the top of the debt pit. This is the Loan Repayment calculator that was used, nice and simple.

I was sent this via email, you may have seen but I thought it was cute and instead of forwarding it to everyone ... I'll just post it here and YOU can forward it to everyone!

By the way, anyone see a flaw in this reasoning? It seems to good to be true.

It's a slow day in a little Lancashire town. The sun is beating down, and the streets are deserted.
Times are tough, everybody is in debt, and everybody lives on credit.

On this particular day a rich tourist from down south is driving through town. He stops at the motel and lays a £100 in cash on the desk saying he wants to inspect the rooms upstairs in order to pick one to spend the night.

As soon as the man walks upstairs, the owner grabs the bill and runs next door to pay his debt to the butcher.

The butcher takes the £100 and runs down the street to repay his debt to the sheep farmer.
The sheep farmer takes the £100 and heads off to pay his bill at the supplier of feed and fuel.
The guy at the Farmer's Co-op takes the £100 and runs to pay his debt to the local prostitute, who has also been facing hard times and has had to offer her "services" on credit.
The hooker rushes to the hotel and pays off her room bill with the hotel owner.
The hotel proprietor then places the £100 back on the counter so the rich traveler will not suspect anything.

At that moment the traveler comes down the stairs, picks up the £100, states that the rooms are not satisfactory, pockets the money, and leaves town.

No one produced anything.. No one earned anything.
However, the whole town is now out of debt and now looks to the future with a lot more optimism.



photo courtesy flickr cc via Horia Varlan

You can fix your own credit without paying someone else to do it for you. All it takes is patience, tenacity and loads of paperwork, this will take you do a better credit score and the best do-it-yourself feeling around.

Credit repair isn't difficult, however, let me first start off with a few items that can make your situation more difficult.

1 » Failing to dispute issues with Credit Bureaus - Writing letters to dispute with the three credit bureaus is the best way to knock off up to 20% of the items you are disputing. If the credit bureau can't verify the claims, they have to remove them.

2 » Failing to document your work - You should be keeping notes on everything, who you sent a letter to and when, who called you and when. You want to send all communication certified mail to register when they received the letter as this is the countdown for the 30 day dispute time-frame when you are writing to the credit bureaus. If you don't hear from them in the 30 day window, then they MUST remove the item per the Fair Credit Reporting Act (FCRA).

3 »  Failing to dispute via snail mail (letters) - NEVER dispute online, you do not get any record of the dispute for when they received it (certified mail you do). You will not be able to dispute specific items within the line, such as a wrong high balance, wrong date account was opened, etc. You will not be able to send documentation to back up your disputes either.


4 » Don't be unrealistic and Don't give up - There is no quick fix to cleaning up a credit report and bringing a credit score up. It can easily take 6 -12 months to see progress being made. Along with that it can seem almost impossible to remove items such as bankruptcies,  tax liens, and judgments.
Even though it may seem overwhelming at first, take it one step at a time. Set aside a day or two a week to get your disputes written and then once they are sent off, it will only take about an hour after that.

The strategy to cleaning up your credit report is pretty basic:

1• Get and Review your credit reports - Annualcreditreport.com is the ONLY one you can get for free on a yearly basis as required by the federal government. The only other way to get your reports for free any other time during the year is if you have been declined for credit or received a negative report to your credit report.

2• Analyze your report - Most reports have your information listed in a way that separates your good information from your damaging information. But what you are looking for are inaccuracies such as late payments that you know you paid on time for, a much higher high balance than you have spent on a card or collection accounts that don't say paid when you have already worked with the company.

3• List of negatives by importance - These are the items that are most damaging with the top being the worst and the bottom being items you will work on last. Also if you find negatives on your report that you haven't been notified about those companies are in violation of the Fair Credit Reporting Act. You can use this to pressure the original creditor to remove the listing by reminding them they are in violation of the FCRA by not notifying you.

• Bankruptcy
• Foreclosure
• Repossession
• Loan Default
• Court Judgments
• Collections
• Past due payments
• Late Payments
• Credit Rejections
• Credit Inquiries

4• Write your dispute letters to the credit reporting agencies (CRA) - The easiest way to dispute on the first round is to say the item is "not mine" before going around a second time and disputing specifics in the negative. The second round you can try the following: I didn't pay late that month, Wrong amount, account number, original creditor, Charge-off Date,  Date of Last Activity, Balance, Credit limit, Status (there are about 20), and Wrong High Credit (the highest amount you used)

5• Send the letters - After you write the letters, copy them or save a copy on your computer and mail them off certified or registered mail so that you are notified when they have received the letter. Some people send them off and require the receiver also sign for the letter. This is much more expensive but you now have notice for your records of who signed for it as well as when they received it.

6•  Keep records organized - You want to document when you sent the letters, your copies and any responses that you received from the CRA. This documentation is helpful, if in the future, you need to take them to court because the companies violated FCRA.

7• Wait Patiently - Each dispute to a CRA has 30 days to respond to the reason you gave them. They also have to provide proof of the item you have disputed, such as high balance or that the negative is yours. If they do not provide proof in the 30 days, they have to remove the negative from your report.

8• Analyze the result - Since you have saved your original credit report that  you ordered and disputed from, get another one and compare the two to make sure the CRA has followed through on removing the negative or correcting the error.

9• If it hasn't been changed, REPEAT with round two 

10• Other unique item disputes - Collections can be disputed a few different ways to get them off your report and help your credit score:

Pay for delete - debts under $500 can be paid off in return for the entire listing being removed from the report.

Settling the debt - debts over $750 can be negotiated down to a manageable lump sum amount to pay and agree to have them remove the item from the report.

Debt Validation - involves using the Fair Debt Collection Practices Act in your favor by requiring the collection agency to prove the debt is yours. It involves letter writing to the collection agency, but if the collection agency is non responsive, it requires the threat or filing of a lawsuit.


Some sample letters I have used are the following: Initial CRA dispute letter / Followup CRA letter / Cease and Desist Letter to Collection agencies / Collections Debt Validation / Letter to Remove Inquiries

If a negative comes back onto your report and they haven't notified you ahead of time they have violated the FCRA and you can sue them for $1000 and win. But it isn't uncommon for a CRA to remove the item until the items has been verified and then once verified they put it back on, this is fine as long as they notify you in writing before hand.

Sometimes, it will just take the mandated 3-10 years, depending on your state, for the negative to fall off the credit report, but you can also dispute the item if it hasn't been removed in an appropriate time.

pic courtesy of TrinityCreditServices

I have been a regular reader of the @debtdiva via twitter and have enjoyed her articles as well. Recently I was sent a great reminder of ways to keep our wallets clean from future debt.

*********
Americans are plunging deeper into debt each day. Take a look into your wallet. What’s inside can either help or hinder your journey towards debt free living. If your goal is to pay down your debt and live within your means it’s time to examine your wallet and give it a quick and easy spring “cleaning” with these tips from The Debt Diva.

• Keep your credit in check! Remove your credit cards from your wallet and keep them at home in a safe place. Having easy access to credit can be too tempting for those who tend to make unplanned purchases.
• Use Powerful Plastic. You don’t want to overdraw your account and pay hefty bank fees. If that’s a problem for you, consider getting a prepaid card. What’s different about a prepaid card is that it’s tied to a savings account (typically an online account) rather than a checking account. You can only spend the money available in your account. If you go over your balance, your charge will be denied and you won’t incur any fees.
• $20 Life Saver. Keep a $20 bill in your wallet at all times. You never know when you will need to hit a pharmacy or convenience store for a small purchase just to make it through the day.
• Pocket those receipts. Save the receipts from all purchases to track your spending and see where your money is going. This will help you keep your budget in check and make strategic purchasing decisions.
• Keep the change. You can build a healthy savings account from the spare change left in your purse at the end of the day. Starting small is the way to large gains, and it will get you in the habit of saving! Always keep the change from any purchase, and put it straight into your piggy bank when you return home.
• Rewards cards. No wallet is complete without rewards membership cards from vendors you frequent – particularly your grocery store. You should always keep those on hand for unexpected trips to pick up milk or eggs on the way home.

Still feeling overwhelmed and stressed? Check out The Debt Diva’s Great Money Makeover Contest for your chance to win a personalized debt relief plan from the Debt Diva!

Clarky Davis, The Debt Diva is a debt management expert with more than 10 years of personal and professional experience. As The Debt Diva she offers financial fitness education and “real world” money saving tips to help consumers trim their spending in just about every area of their lives. As The Debt Diva for CareOne Credit Counseling, Davis shares her savvy debt management tools with consumers and provides free downloadable guides at TheDebtDiva.com.

photo via consumerist

I love watching Dr. Oz and his ideas on living a healthier life through the foods we eat and how we should take better care of ourselves. I've taken some of his ideas to heart and others have reinforced what I have read multiple times before. This has helped me with my lifestyle change as I lose weight.

In this process of losing weight I have found out some things about myself that also seem to run parallel to losing debt as well. The best way show you how this works is to go through Dr. Oz's 12 best diet tips and show you how I have made those work for me in relation to my debt and living frugally.


1.   Clear out the pantry and fridge. 
The best way to avoid temptation is to get it as far away from you as possible. My greatest temptation are chips in the cupboard. The same goes for carrying cash around, If I have the cash, I WILL spend it and most likely it will be sucked up by a vending machine.

If I don't have the temptation to toss a dollar or two away on an impulse buy then it isn't even a consideration. I am making it easier on myself. I don't have to choose, I made the choice early on that I wouldn't buy anything.


2. Make simple substitutions.
The idea that living frugally has to be an all or nothing decision is baloney. When I make small changes and investments in my spending and saving habits I know that they will stick better because I feel I have more control and I feel I have more fun with this.

Obviously I haven't switched fully to making my own cleaners, detergents and the like, and though it will be a slow transition, it will be easier to stick to it as I make those small changes.

3. Make sure you're getting enough sleep.
One thing that took me by surprise was that when I was stressed, I didn't make the best money decisions. When I am tired I am more likely to spend money on eating out or giving in to my wants as opposed to ignoring them for the greater good.


4. Don't starve yourself.
This goes along with making simple changes. If you say that you will never, ever waste money again on entertainment you can make yourself a cranky, bitter individual. What will happen is that the craving for entertainment will eventually drive you nuts and you overindulge and feel guilty. A balance has to be struck.

Instead, some ways to set up a balance are to set aside time for that entertainment, maybe at a cheaper price. This way you don't feel like a mouse who never comes out of the house to enjoy the luxury of cheese.

5. Don't beat yourself up if you "cheat."
If temptation does take a hold, and you give in and overindulge, don't beat yourself up about it. Everyone has a bad day here and there, all that is needed is to look at that situation and figure out what led up to it. Were we being to extreme before we ended up binge-ing? Were we hanging around people who weren't supportive of our goals? Were we stressed and tired of fighting so we just gave in? Only you will know the answer to that.


6. Eat hot peppers for breakfast.
Frankly, if you can find a personal finance idea behind that one, I will send you a book from my library.


7. Eat the same lunch every day. 
We are animals who mostly like a routine, but that isn't a requirement to living a frugal life. Moments are the pearl in our oyster of life. We can still experience the world and people around us without having to spend a lot, or even a little, money. I think more of us remember the times with our family and friends more than we remember the times with our cars, gadgets and homes.


8. When you're hungry, drink some water. 
When the urge to spend or overindulge consumes sometimes we can curb that hunger by simple diversions or even talking ourselves out of it. Heck, we think up excuses everyday not to exercise, we can think of excuses not to buy something. Sometimes a little talking to yourself is all you need to get through until you get to your goal. If the talking doesn't work, give yourself the night to sleep on it and if you still MUST have it, go and get it. Save the receipt and you will still have time to change your mind and return it.  Water may be "tricking" yourself into not eating but it works just like making yourself wait 24 hours.


9. Snack before meals.
This goes back to #4 and giving yourself small luxuries so you don't overindulge.

10. Use smaller plates.
One thing that I have seen is that when I lived in a small 450 sq. ft apartment, I kept only the necessary items but when I moved into an 800 sq ft apartment I easily grew into it. No matter the size, I always filled it up. By keeping my living space small I help myself out because I would have no place to put it. For instance, my closet is only so big and I have a rule that only 10 baseball caps can go in there, if I buy a new one, I have to have in mind the one I will have to toss out for the new one to take it's place or I don't get it.


11. Eat with the TV off. 
I don't know how many times I have heard people tell me that when they cut out the tv from their life they were able to also cut back on the temptation to buy while at the grocery store. Whether we realize it or not, our sub-conscience does register those commercials and keeps them filed away because of the way they made us feel when we saw the product. When we are in the store, we see the item and those feelings flood back to us while we decide what brand we are going to buy. The further we can stay away from advertising the better it will be for our savings account.


12. Look for ways to include exercise in your everyday activities.
Cutting back isn't the only way to save. Making more will also help with trimming down the waistline of those debts. We can eat less, we can spend less. But when we exercise more, put some work into bringing more to the table then we are able to see the results faster and feel excited about the hard work we have put into this lifestyle change.

A friend of mine is over $30 thousand in debt and we are working together (actually she is doing the hard part) on getting things paid off so she doesn’t have to go through what I went through with collectors calling and a bankruptcy.

Every couple of months we sit down and go over what she has paid and how much she has left to pay. Basically, she's just keeping track of where she stands so it doesn’t become to overwhelming for her.

With her approval I will share a few simple things we are doing that is helping her out mentally and bringing a smile to her face.

One hot day in August after we were discussing bills for the umpteenth time, we scheduled a get together to go over what bills/debts she had. She brought over her bills and I broke out the milk and Oreo cookies and went at it. We wrote down on a simple piece of paper who her creditors were, how much she had left to pay, what the minimum payment was and what the APR was for the bill. Then we plugged it all in a spreadsheet on her laptop. What information we couldn’t find, we are able to look up online at the company website by signing up or by calling the customer service number on the bill.

Each website is now bookmarked in a folder on her browser so she can keep up with checking them for due dates, late fees, transactions and to make sure payments have posted.

With all the information on the spread sheet, she set about writing out her bills and we jotted it down on the spreadsheet for that month. The minimum payments will go down as she pays on them, so that is the discrepancy on the total paid. Trying to get her to pay the same amount each month, even if they want less so that she can get it paid off sooner.

Once a month, after making her payments, she would total up what she paid for the month and also total up what she had left to pay. This allows her to see the debt go down and how much money is going to debts – It is both exciting and frustrating.

She found that getting all her bills automated was the best way to make sure she paid at-least the minimum on them. And any extra money she receives from bonuses at work or items she sells goes to the debt with the highest interest. Frankly, I don’t care how she pays it, as long as she has one bill as her target and works feverishly on getting it paid off.


Obviously her plan isn’t anything spectacular, but it allows her to see it broken down in a simple way. It also helps that she can see her card balances as they go up and down each month depending on what she buys or doesn't buy and, that she also is able to see her student loan and car loan payments are going down each month.

I wanted to lend a hand to help her out so that she won't feel like she is alone in this. There just isn’t anything like receiving positive feedback from people who care. Ask any of the bloggers that have posted their debts online for all to see, I think they will agree.

Motivation is a must if you are going to be successful in your debt reduction journey. In addition to getting the right program that works for your lifestyle you have to find ways to stay motivated so you see yourself through to your realistic goal that you have set for yourself.

Debt Motivator 1: In order to keep your focus on your desire to drop debt make a list of all the reasons why you want to get rid of your debt. Keep it is plain site, tape it to your mirror in your bathroom and read them each morning when you wake up. If you are shopping often, tape to your wallet for a quick view before you buy something. Tape it to your steering wheel or visor.

Debt Motivator 2: If you are looking to reduce a lot of debt such as 10,000 dollars. Break out your calendar and set your goals. Be very realistic here.
Example your current debt load is 35,000 dollars and your ultimate goal is to only owe on a house or car. Let's say it is January 1st set your first goal of 1500 dollars then realistically plan for that and give it a date. Say March 5th (this will give you 9 weeks to find 1500 dollars to bring in). Set shorter lower mile stones at first to give you momentum then spread it out a little as you go.

Debt Motivator 3: Plan a treat for yourself when you have had a great month. Make it a non-consumer related item such as going away for some quality time. Anything really, that will help make you feel even better about yourself and your great progress


Debt Motivator 4: Take a screen shot/picture of your debt load and on each month after that take another screen shot of the debt, doing this will make you feel great seeing how the debt decreases each month.

Debt Motivator 5: Read inspirational stories of other people who have reduced their debt. Don't just read how they did it but also read about their success for what it is, success. Every person is different so the plan that someone follows doesn't mean it will work for anyone but them. Keep the lines of communication open so that you can inspire, congratulate and help pick each other up through the good and the bad times.

A great site to access blog stories about debt reduction is pfblogs.org

I am sick and tired of seeing any kind of bill (debt) show up in my mailbox. Just Sick. And. Tired. I feel like I am swimming against a hurricane wave at times but I am determined to get to the "island of debt-free" that I see in my mind.

What makes me so tired is seeing the debt stop me from getting things at a decent interest rate if only my credit rating were better, the debt makes me mad because I am limited in the activities I would enjoy with others. And all this pent up anger towards my own mistakes and stupidity makes me sick to my stomach.

I have read all the personal finance info via books, blogs and news articles about digging out from debt. The debt issue is pretty simple: Stop using credit cards, live below your means, know what your means are but keeping track of spending and so on. It is actually pretty logical but the action of doing it is like digging out from under the mountain of debt with a spoon!

I've watched the movie Shawshank Redemption about a dozen times and I love part of the movie where Red explains the reason for the endurance of Andy Dufresne as he plans his escape. I initially saw the film as story on hope but as I dig myself out of this prison, I find that the movie is also about taking one's anger and focusing it on a goal to alleviate that anger.

While the character of Andy was in a prison even though he was innocent, I can't say I'm in my own prison and declare innocence. Considering the hell he went through while in prison involuntarily, he took the time to understanding his surroundings, make the best of a bad situation and make plans for getting himself out and as far away as possible, no matter how long it took.

For Andy his means of escaping his prison was a rock hammer. My means of escaping this debt prison is one survey check and rebate refund at a time. I may be digging myself out of debt with a spoon, but I've found a way to focus my frustration and I've got a plan.

I don’t mention it too often but one of the main reasons I started living frugally was because I didn’t want to get into another situation where I had to claim bankruptcy.

The process of claiming bankruptcy was eye-opening and frightening.

Frightening because the lawyer I hired to help me through this made it clear that some of my creditors may not want to be included in the bankruptcy and I would have to settle out of court with them, by that time I was worn down with phone calls I really didn’t want to deal with them ever again; Eye-opening because of how easy it was, back in 1998, to get all of it wiped out and I owed no one but the lawyer. Of course that is before I truly understood the impact my credit score tanking would have on my future for getting any kind of credit again in the next 10 years.

I knew that I would have to re-establish credit because of the bankruptcy, but someone telling you this and then going through it seem to be world's apart. Through the process of trying to re-establish credit, I came across more rejections or 30% interest rates that it scared me about my future.

That is when I realized I HAD to start living within my means. In Denver, it meant downsizing to as small an apartment as I could stand that was close enough to walk to work and getting rid of the car. It also meant using only the money I had on hand, cash.

Using only cash involved a few learning experiences:

1. Putting it off: I had to figure out my priorities, plan for emergencies and put off the other bills until later. My to do list was constantly in flux and I had to be patient.

2. Chasing my money: Every penny I spent was scrutinized to determine if this was the best way to spend it.

3. Creating Money: Some things that were put off until later, were asked for as gifts to save myself money. The ‘stuff’ in my home had little money signs on them for selling on eBay for extra money when times got tight.

4. Tightwad shopping: This is where I learned the art of dumpster diving and making other people's trash my treasures. The same is true with grocery shopping; I had it down pat when the staples would be on sale and how much to get to last me until the next round of sales. And any rebates or coupons that I found for things I already bought were not forgotten on the kitchen counter like before.

5. Advertising blinders: When you have a very tight budget to stay within and no credit to fall back on, you notice all the advertising that tells you how much more complete your life would be with a cell phone, new car or quick pizza delivery. It helped me become more powerful than I thought I could be at tuning it all out.

6. Limited giving: I made it clear to family that I had limited funds and asked for gift ideas that were under a certain range. Sometimes it meant going in together with someone else to buy a gift or giving a gift that was second-hand but looked new.

7. Power of ownership: There is nothing quite like being able to sleep in a bed or sit on a chair that you have paid for in cash and don’t still owe on to a nameless creditor.

Actually the power of ownership still gives me the shivers. To say to myself, I own it and it is mine, no one can take it back because I missed a payment. There were times I would pinch myself and have a goofy grin on my face because I was so happy.

As another anniversary of my bankruptcy nears, this shock to the system has diminished and the power of ownership now barely entices a grin, I not only want to remember, but need to remember the fear and frustration that debt caused me so I don’t do it again!

Recently the Washington Post ran the article When Debt Collectors Disrupt Dinner and they mentioned something important to remember,

"When talking with a caller about a debt, caution is the watchword. While it's essential to be completely truthful, a consumer cannot be forced to answer any questions. Some experts advise avoiding even acknowledging owing the debt. And there are some things that should never be said."

They bring up some good points in the article and these are a few things I have personally learned. Just because you owe someone money doesn’t mean that they can walk all over you, call you endlessly, and make life a pain. There are some things to keep in mind as you try to organize yourself to pay off your debts; the debtor has rights as well.

$1 - A collector may contact you by phone, mail or in person. However, they can not contact you before 8am or after 9pm. Also, if you let the collector know that your employer does not approve of collection calls they may no longer contact you at work.

$2 - The next step to narrowing down their contact with you is to send a ‘Cease and Desist’ letter. This is done via regular ’snail’ mail and best sent registered mail so you know they received it and have physical proof. This letter would be similar to this letter. This does not mean that you do not owe the debt necessarily, it simply narrows down the way they can contact you by legal means and you can start a ‘folder of proof’ if it ever goes to court.

$3 - A debt collector can, by law, contact other people who know you, but they can only ask for your address, phone number and place of employment. In most states they are FORBIDDEN to reveal that the call involves an unpaid debt.
If this happens, having the people who are being contacted, write down the call date/time and any other information will help you in court.

$4 - Collectors can contact your place of employment only once and that is to verify employment status and location. They can’t ask for any other information and they are in violation of the law if they contact your employer after the initial contact.

$5 - It is illegal for a debt collector to use obscene or profane language when they speak with you. They are also FORBIDDEN to threaten you with violence or telephone repeatedly with the intent of harassment. They are also FORBIDDEN to misrepresent themselves as law enforcement or working for the government.

$6 - Debt collectors can not use false names or give you false information about their company. They can’t threaten to take your property unless it is handled legally and they can’t contact you via postcard.

$7 - If you dispute a collection you MUST contact them in writing within 30 days from the time you receive the notice. Collectors can demand money from you or take legal action during this time until they receive the letter on file. This also a good reason for sending any letters via registered mail.

$8 - If you offer to make a partial or incremental payment, the original creditor nor can the collection agency later ask for full payment.
Some collectors work on commission and will press you for a full payment, but if you know that the original creditor would accept the partial, they are in violation of the law.

$9 - Collectors can legally discuss your debt with your spouse, even if you weren’t married at the time you incurred the debt. If the debtor was a minor, collectors can talk to the parent as well.

$10 - Finally, This is NOT legal advice. If you believe you are being illegally harassed, take notes and keep all paperwork, also contact the Federal Trade Commission (877.382.4357) or your Attorney General. You can also speak with a certified lawyer for advice as well. Personally, I have found a great amount of help through the CreditInfoCenter forums, however they are not official legal advice either, but will direct you down a proper path.

I had read a question a while ago that asked if anyone had tried many of the debt reduction services that are sold via radio, tv and online.

Over the years I find that most gurus end up advocating the following debt reduction steps:

1. Stop using credit cards
2. Write down your debt, what you owe and what you bring in
3. Live below your means
4. Sell stuff to make extra money and help pay down debt
5. Get a second job if you have run out of things to sell
6. Save money for emergencies

The thing about this debt reduction plan is that it is provided out there in the library (in the 332.0 section) or online for free. Not only that, to get out of debt and move into a wealthier life is mostly about common sense and turning what we already know into action.

One thing I don’t like about debt reduction seminars are that what they sell for 80-300 dollars can be learned for free over time; the same amount of time you would put into reading the programs you purchased. It isn’t about some quick-fix pill, but about your own drive to get debt paid off. Inspiration is out there if you are lacking, there are radio and tv shows by Dave Ramsey, Suze Orman and Clark Howard.

I ordered John Cummuta’s Transforming Debt into Wealth free promo that I heard on the radio and this is my personal experience.

First I was a bit disgusted that when I called to get the free promo I was grilled about how much debt I had, how soon I wanted to pay debt off and so on. All I wanted was the free promo. The reason they ask you questions is to get you to buy the system straight up because, as I learned later, the promo CD is simply a repeat of what is said in the advertising material that comes along with it and on the radio.

Again, you can save your money and borrow his books at the library in the personal finance section (332.xx). Even the items that I could buy through this promotion were available at the library for free when I looked it up. So save that money and apply it toward your debt.

One of the inserts gave teasers for items you will learn through his system and I have put my own 2¢ in and you can have this debt reduction information for free.

How to save thousands of dollars when you buy insurance - First, not everyone is going to save thousands, but it does add up. The main way to save money on your insurance is to call around or check online sites like insurance.com. You would want to do this every 6-12 months to make sure you are getting the best deal and sometimes, you can also mention that some other insurance company is offering a lower amount and find out if they will beat it - also find out if they bundle services to get discounts.

How to stop car dealers from picking your pocket - This is about picking out a car and getting as close to the book price as possible. The best way to stay out of debt is to buy a car after you have saved for it, one that is second-hand and preferably has one owner. I would also suggest that you get your loan approved first with a bank or credit union and then find the car. But there are many other support networks through Bankrate, American Consumer News, eHow and MSN Money.

How to calculate exactly when you will be completely out of debt - This is the art of a debt snowball, in which you take one debt and pay it off, then roll that payment into the next one. There is a handy Snowball calculator that allows you to figure this out. You can pay off either the smaller debt first or the the one with the highest interest.

Specific ways to cut daily shopping expenses without sacrificing - The many ways to cut back are out there and the information is free. Basically, plan ahead and don’t impulse buy. Reheat your left-overs. Cut down on the amount of food you eat and when possible, grow it yourself.

Why mortgage interest deductibles are the ‘tax shelter’ lie - This goes along the idea that if you owe anyone (bank included) then they own you. It is about whether the tax deduction for a house payment has a value that is better than holding onto the debt of the house. There are two different viewpoints on this: Free Money Matters vs. Becoming and Staying Debt Free

As you can see by just a few of the teasers above, there is a flood of information online (not counting the library) that is free and doesn’t require that you plunk down any money to learn all it takes is a desire and time to learn and understand. If you want more to read online, Mint has a great list of 30 free ebooks on personal finance.