The last article has discussed about negotiating with the lenders for settlement. There I’ve suggested that it’s better to settle with lump sum payment and when you negotiate, be prepared to offer the sum upon agreement. So, how would you come up with the money when you’re finding it hard even to stay current on your bills?

In this write-up I’ll share few saving tips to help you deal with the debt problem.

Saving is all about cutting down unnecessary expenses. Well, that doesn’t mean that you need to live like a pauper but curtailing expenses that are not really required can help you in saving some funds.

• Try to cut cable TV expenses: You can restore the connection when you’re out of debt but for the time being, try to live a life without television and cut the cable or dish connection.
• Combine the services: Many companies offer combined utility services. You can get discounted rates if you take the offer. So, if you can get internet, cable and phone services from one provider, you’re likely to get discounts.
• Grab the rebates: Yeah, it’s all about scraping money from wherever you can. So, if you have bought a product on discounted rate, sent away the discount form immediately and also follow up with the company if you don’t receive the check on time.
• Ask to reduce credit card interest: When you’re trying to settle with one creditor you can request the others to reduce the interest on the cards. The banks may agree to reduce rates if you explain your hardship. The same route can be adopted for the home equity line of credit.
• Refinance your home: If refinancing is an option, you might not overlook it. Even if it offers only 1% reduction in the rate you can save big amount in terms of interest payment over the term of the loan.
• Get rid of unnecessary coverage: Do you know that you can drop the PMI once you acquire 20% equity on your home? Similarly, check if you need warranty insurance and credit insurance. Often these are unnecessary coveragse and you can do better without them. The same theory applies to rental insurance and coverage offered by car dealers. These are overpriced and often redundant.
• Shop around for better rates: By investing little more of your time you can get better deals for car and home insurance and save hundreds on insurance premium. Deductibles can also pay an important role in reducing premium rate.
• Avoid paying bank fees and checking account fees: Many banks offer free checking accounts. So, why pay fees on them? Also, search for credit cards with no/minimum annual fees.
• Arrange a garage sale: It is one effective way to raise money when you need. Many of us have unused goods stored at our attics, these can be arranged for sale to raise funds for settlement.

At Debtconsolidationcare, we make sure that there’s a sense of belongingness to our community. In an attempt to do so, we have come up with the “Hall of Fame” Badge – a symbol of recognition of our members’ contribution towards the community.

As of now, community members making more than 1000 posts qualify for the Hall of Fame (HOF) Club membership. Once a member qualifies for HOF, the community starts a thread “Vote for your name in the Hall of Fame” in the pub forum. This is where the member receives votes from others (members) participating in the community. Once the member gets 10 votes, he becomes a member of the Hall of Fame Club.

Till date, a HOF member used to receive a check of $100. In addition to this, they’ll now receive the “Hall of Fame” Badge, which they can use in their blogs and websites. Using the HOF badge, members can promote themselves as a member of our community. If you’re a HOF Club member, feel free to get the badge code from the member area.

If you are a regular in our Community, you may have noticed how adamant I am about sending disputes of inaccurate information on your credit report to the Credit Reporting Agency/ies whose report reflects such information.

Is it Really a Waste of Time to Dispute With Credit Reporting Agencies?

If you do not save this info, and merely send them a letter saying basically “this is wrong, change it”, then you just may be at the mercy of an unscrupulous creditor who will just say “it’s accurate”. For instance, one poster on our Forum stated: “I guarantee you that, even if you send the bureau a copy of a PIF letter, the bureau won’t actually change your credit report. In all cases, they forward the dispute to the creditor/data furnisher who is reporting the information. This method of procedure is all that is required of them in the FCRA.” In order for the creditor to merely say “it’s accurate”, they would have to LIE and say that they did not send you the PIF letter (to use the example just cited), which is fraudulent on their part, or they are basically accusing you of fraud.

The Government Fights Back

According to the National Consumer Law Center’s Report Automated Injustice: How A Mechanized Dispute System Frustrates Consumers Seeking to Fix Errors In Their Credit Reports disputes to the CRA were being processed exactly as the above mentioned poster said. It stated: “Despite its importance, the FCRA dispute process has become a travesty of justice. The major credit bureaus (Equifax, Experian, and TransUnion) conduct investigations in an automated and perfunctory manner.”

They aren’t supposed to just pass the dispute on, especially when the consumer is providing documented proof in their defense. The Fair and Accurate Credit Transactions Act of 2003, also known as the FACT Act, was enacted because of this very reason. So even though they may have basically ignored disputes in the past, they are now fair game for a possible lawsuit by the FTC in Federal Court. If the CRA refuses to bend, again, file that complaint with the FTC. The CRAs may have differing information, but they are all beholden to the FTC. After the CRA spurns the heartfelt plea of the wronged consumer, they usually believe that they are beaten by an entity with power over their lives. This, my friends, is the very definition of tyranny.

How a CRA is SUPPOSED to Deal With Your Dispute

The FTC itself has power over the CRAs. The CRAs actually must investigate and take into consideration any documentation that the consumer supplies. According to FTC Reports to Congress on Credit Report Complaint Referral Program (page 2): “Sections 611 and 623 of the FCRA impose dispute investigation and resolution duties on CRAs and those entities that furnish information about consumers to the CRAs. … If a consumer disputes the accuracy of an item of information in his or her file with a CRA, the CRA must (i) complete an investigation of the dispute … (ii) review and consider all relevant information provided by the consumer“* [emphases mine]. The same paragraph continues that the alleged creditor must also investigate. THAT is why I say to always dispute with the CRA, it’s a one-two punch. Of course, first try with the creditor, and if they refuse to correct it, then go this route. That is a total of 3 denials, and you know what they say about 3 strikes.

Again, keep all documentation, you will need it. Send not only a copy of any letters, etc., but also the envelope it was mailed in. If emailed, print out the email with full headers. The more proof you have, the tighter your case is.

Daddy’s Watching!

The FTC randomly audits dispute data in the CRA records, because of complaints to the FTC that the CRAs are not removing info that is inaccurate. If they don’t, the penalties against the CRAs can be up to $2,500 per violation.

The Federal Trade CO-Mission (It Takes 2 – Us & Them)

I keep harping on about the Federal Trade Commission, but, seriously, they do their job very well. Perhaps people have become jaded against any Federal agency after so many reports of incompetence, especially the Katrina fiasco. But every agency is not like that. Some are headed by very dedicated people whose main motive is to defend people against unfair and deceptive acts or practices, and get a paycheck for it too! Win-win! But it takes legitimate and documented complaints for them to open an investigation. They can’t, both logistically and financially, sue every company that some citizen complains against, but a consistent history of similar complaints shows a purposeful flaunting of the law.

The same is also true of debt settlement companies, or that store down the street that sold you defective merchandise and refused to refund your money, or even that judge who rules in the creditor’s favor even though the defendant has a mountain of evidence in their favor. If you feel you have been ripped off, it is your duty as a citizen of this free country to demand a redress of grievances.

FTC Testifies on Efforts to Protect Consumers of Financial Services; Urges New Tools for Stronger Enforcement Authority is an attempt by the FTC for Congress to grant them more power to file charges against these rip-off artists. Right now, they have to file a request with the Dept. Of Justice, and that can run into one heck of a backlog. That’s why it may seem to take awhile before justice is served.

Thus Quoth The Raven: Nevermore

“The price of freedom is eternal vigilance.” (Thomas Jefferson)

“[P]eople have only as much liberty as they have the intelligence to want and the courage to take.” (Emma Goldman)

“So long as the people do not care to exercise their freedom, those who wish to tyrannize will do so; for tyrants are active and ardent…to put shackles upon sleeping men. (Voltairine de Cleyre)

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* See also the FCRA Sections 611 (disputes to the CRA) [15 U.S.C. § 1681i(a)(1)(A)] and 623 (disputes to the alleged creditor) [15 U.S.C. § 1681s-2].

From the desk of my experience:

1. Success is self defined: Some define success as being able to achieve a harmonious family life. Where as for others it might be getting back to home from a tiring day at office and having a peaceful dinner with their family or getting a comment on their blog post and for some it might be going for a ride in a limo.
2. Success does not drive people: The people who are driven by the right cause achieve success whereas there are people who on their pursuit of success tread blindly on a path that leads them nowhere.
3. A+B+C=Success: I wish it worked. There is no prescribed formula for success.
4. Being successful is just a momentary thing: As you accomplish one goal, you’ll see another mountaintop that you’ll want to climb. But a word of caution here: as you venture out for a new accomplishment DO NOT forget to appreciate what you already have!
5. “I have achieved it” This is what you probably thought when your project got approved. Hey but wait a minute! Did you bang it on your own? Probably not. So, do not forget to look back and express thanks to the people who are responsible for making you successful. “Let’s create a blog for DebtCC” is an idea by someone but there are many faces working behind it to make it successful.
6. Warning!
   
   Being successful in one field can sometimes make you failure at other fields. Its you call, your choice. Want to be a high profile active blogger or a loving moma? Its your choice, Its your call. go(Added note: Most women leave their career and stay at home to become successful mommies. But if they manage to break through the complex home and work quandary then they can relish mommyhood as well as their career.)
7. Life is not all about achieving milestone success; it is about a journey towards success. Don’t screw up your journey towards success for milestones.

Ferrer rocher chocolates….. diamond studded watch……. designer shoes…. ipods…. flashy cell phones….. gucci bags…. pink sapphires….. Clive Christian perfume spray…. an outrageously expensive get away in Phuket….

The list of cliché Valentine’s Day gifts is endless, it goes on and on with most of the gifts emptying the pockets and leaving the loving souls sweating! Don’t worry, on this 14th of Feb you do not have to spend hundreds and thousands of dollars, here are some great suggestions for creative Valentine’s Day gifts that are sure to impress and surprise but yet won’t break your budget.

1. Do not rush to Hallmark to get hold of a card…..you can make the perfect Valentine’s cards for that special someone within hours and it won’t cost you a fortune, either. All that you need for making these great little Valentines Day cards is a package of construction paper, some glitter, markers, a few glue sticks, and a pair of scissors.
2. Make a small booklet (entitled “The reasons why I love you”) on your own and then jot down all the reasons that made you head over heels for your valentine.
3. Do you remember the old adage that says “a way to a man’s heart is through his stomach”? On this Valentine’s Day twist it a bit and treat your sweetie with sumptuous dishes made by you. Show her that you are nothing less than a master chef! Lol!! Do not worry even if you burn the fries at one side……take my word she would still gorge on them.
4. Take your valentine out to the place where both of you met for the first time. Go for a stroll and hold each other’s hand….spend a good amount of time with each other. After all time is the best gift that you can give to your loved ones, isn’t it?
5. On this Valentine’s Day spend some precious moments with each other by doing something that both of you like (hobby crafts) it can be anything from photography, gardening, cooking, wood crafting, or salsa dancing to water coloring.
6. Valentine’s Day is not only for young couples…..so why don’t you make your parents feel special on this 14th? Suggest to your beau about a double date with both sets of parents, so the family members too get an opportunity to know each other. Treat the family with a lip smacking meal prepared by both of you.
7. Gift a compilation of all the romantic songs to celebrate the cherished memories.
8. Share the precious moments both of you had spent with a handmade photo collage. You can also gift personalized photo frames by adding a special romantic message beneath the snap.
9. A personalized coffee mug for a coffeeholic valentine. Every time your sweetheart takes a sip from it that would remind him or her of the love that both of you share.
10. A valentine box filled with love letters, cards, flowers or chocolates is surely going to leave your loved one amazed at the thought that you have put so much of your time and effort in the gift.

If you have some more amazing ideas then feel free to add them………..enjoy this season of luv