Question 1: Ben, today's
column tackles a pretty tough subject-money and death.
Answer 1: This was unquestionably one of the
most difficult columns I've ever written, and it does tackle two of the hardest
subjects for consumers to openly discuss-money problems and death.
Question 2: I thought you did a good job of
putting your cards on the table for your readers; you've talked many times about
the personal financial challenges you experienced in the 1980s-and you even
considered suicide?
Answer 2: Sorry to say it, but yes. Like
Deborah Woolverton, I felt incredibly overwhelmed and helpless and came close to
putting a permanent halt to the barrage of threatening phone calls I was getting
pounded with from debt collectors. Apparently the Woolvertons were carrying some
pretty steep credit card balances, had some tax problems and their home had been
foreclosed on the week before she decided to tragically take matters into her
own hands.
Question 3: We're all glad that you didn't
take that fatal step, but what's great for consumers who are facing some harsh
realities is that you not only survived tough financial times, you've turned it
around and empower consumers with information and battle-tested strategies for
getting through money-related troubles.
Answer 3: You're right and it's no secret
that I've literally written the book when it comes to firing third-party debt
collectors. I've got a checklist for the financially-challenged:
Never Forget: You've Got Rights! Under
a federal law called the Fair Debt Collection Practices Act, third-party debt
collectors cannot...
- Call you before 8 am or after 9 pm your local time
- Discuss your debt with a stranger, like your boss or your
neighbor
- In Texas, they can't garnish your wages [Exceptions? IRS,
child support and student loans]
- In Texas, they can't take away your home [Exceptions? If
the overdue debt is secured by your home, like a first/second mortgage on the
property...and of course, the IRS]
Go Underground! Why make
it easy for the debt collectors to shoot at you? The telephone technology of
today makes it much easier for consumers to insulate themselves during difficult
financial times.
Services like Caller
ID and Privacy
Manager allow embattled debtors to see who's calling-of course you
can't let curiosity get the best of you and pick-up the phone if it says it's
"Anonymous" or "Out of Area".
Another low-profile tele-tool? Personalized
Ring: I realize that money's tight, but this could be the smartest
$2.95 month you can invest in your sanity. What it does is allow you to have up
to three different phone numbers on your existing telephone line, each with a
distinctive ring. This means that the debt collectors that are calling you get
to continue to call your current phone number (you'll let those calls roll to
voicemail), and you get a new phone or two to give to family or friends, or
hopefully a new employer.
Bottom line: If you get a new
phone number, make sure you tell your friends or family to NOT
give out the new number to anyone with any story over the phone. You're the only
person authorized to give out the new number. Period.
Fire The Debt Collectors:
The law I mentioned earlier-the Fair Debt Collection Practices Act empowers
consumers with the ability to fire third-party debt collectors. Remember: A
third-party collector is defined as someone other than the original collector
trying to collect an overdue debt. I've gotta free copy of the letter,
commonly-referred to as a Cease & Desist Letter, posted on my website. Take
the irritation-in this case the debt collector-out of the picture by firing
them, sending them the Cease & Desist Letter via Certified Mail, and then
deal with the original creditor, which is who you owe the money to, anyway.
Part of the negotiation can include:
- Re-structured payout terms, perhaps no payments for
several months
- Lowering of interest rates
- And just as important, agreeing in writing how this
repaid debt's going to be re-reported on your credit report when you finally
pay 'em off
Get Real...(And Do It Fast) Look,
I've been there. People in over their heads financially are frequently in a
state of denial and what people realize is that time is just as precious as
cash. They delude themselves into thinking that "a solution" to all
of their financial problems is just around the corner and in the meantime, the
clock continues to tick: The rent goes on...the car payments get further
behind-and you're in an even deeper hole. The longer troubled debtors continue
to feed those high-interest rate credit cards with what precious cash they've
got left, the deeper they're digging in.
Explore All Exit Strategies: It's
not popular with alotta people, but over 1.6 million Americans took bankruptcies
last year. Is it right or wrong? That's not my position to tell someone-nor is
it yours. Unless you're gonna write me a check to cover me while I work out of
this mess, mind your own business.
I'm already hearing stories about "compassionate" employers that
waited until after the holidays to fire employees-so did they really do them a
favor by waiting? You tell me as they begin opening their credit card bills that
are now showing up in the mailbox.
A bankruptcy might make the most sense and then again, it might not.
Everybody's situation is different, but the good news is that Texas and Florida
are the two best states to have financial troubles, because of our abilities to
hang on to our homes and not have wages garnished.
Keep The Faith: Tough times
don't last-tough people do. It's only money folks. Someday when you get back on
your feet financially, you'll get another credit card. It's not the end of the
world, and believe me, there's NO money-related problem worth ending your life
over. Ever.
Question 4: You've got a bunch of
information posted on your website, don't you?
Answer 4: I've got hundreds of pages of
information, including the Cease
& Desist Letter, all posted on the site for free. Also
up there: The truth
about non-profit credit counseling or debt renegotiation companies,
how to find/hire an
attorney...I've even got three
full chapters of my "how to" fire the debt collectors book, all posted
for free up on the site.
More good news for future home buyers (and their
credit reports): Didja hear about the mortgage company that was able to step
in and close a tough loan on less than 24 hours notice? Despite
all of the paperwork and (perceived) brain-damage that goes with the home
buying process, the first mortgage company that was supposed to close fell
apart and set the stage for the save of the century by my friends at W.R.
Starkey Mortgage. And what's really amazing
about this story are the facts of the deal: A pock-marked credit report, a
non-conforming loan and a short-fuse couldn't keep Starkey from delivering the
goods for a grateful homeowner, which brings me to the moral of the story...
Don't screw around with a buncha pikers that
make mortgage promises they'll never be able to keep!
You might think you're getting a good deal, but it'll likely blow up in your
face when push-comes-to-shove and they can't close. Then your problems really
begin. W.R. Starkey has the Dover
Seal of Approval because they're the best, no-B.S. mortgage company in the
nation...period.
They deliver and make home buyers the winners
and long-term beneficiaries of Starkey's commitment to their company
positioning statement: "A
different kind or mortgage company where people come first."
You really can bank on it, folks.
Take the Dover-proven route to
stress-free finance, and take advantage while interest rates are STILL at
incredibly-low levels! Ben's no-brainer choice
for any/all of your mortgage needs? Easy...do
it all on-line
or on the phone with the official mortgage company of
www.benjamindover.com
and your first (and only) stop: W.R.
Starkey Mortgage. Hit
their website or
call
their Austin office at:
(512) 329-9040 or toll-free:
(877) 340-9040.
Don't get suckered in by
countless radio-commercial claims from car leasing companies out to
hook you, wear you down...and beat you into an emotional (and maybe
financial) pulp! Check out Ben's free Smart Car
Seminar automotive acquisition tips right
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This is a no-brainer, and they're the first and last
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Auto Leasing! They have loyal
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Because they'll take care of you better than
anyone else out there!
By the way: If
you're facing one of those upside-down scenarios (car business term meaning
you're financially buried), or maybe you simply want to bail on your current
vehicle and need someone to get creative on your behalf, Manufacturers
Auto Leasing is the best in the business.
Period.
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