Declare Your Independence From Debt!
Tuesday July 3, 2007
It was over two hundred years ago that Thomas Jefferson, George Washington, and others declared America's independence from Britain. This 4th of July, declare your own independence, from debt!
Start by making the decision to get out of debt. Read this aloud:
Now, to start your war on debt...
Start by making the decision to get out of debt. Read this aloud:
I, your name here, declare on this day, today's date, that I will be free from debt. I have the right to pursue freedom from debt and I will exercise that right by taking the steps necessary to eliminate my debt.Make it official by printing out the statement and signing your name to it, just like John Hancock did with the Declaration of Independence.
Now, to start your war on debt...
- Get a free copy of your credit report. You'll need it to figure out if you have too much debt and to make a debt reduction plan.
- Examine your debt load. Do you have too much?
- Make a plan to get out of debt. Keep your credit report handy for this step.
- A consumer credit counselor may be able to assist you.
- Before you enroll in a particular credit counseling agency's program, make sure to get the answers to some key questions.
- If you choose a credit counselor, there are certain things you should be wary of, like an unfavorable standing with the Better Business Bureaus (BBB).
- You have the right to stop debt collectors from calling you.
- A cease and desist letter will stop debt collectors from contacting you period, via phone or mail.
- Make sure you know your rights when it comes to third-party debt collectors.
- Stay away from spending habits that lead to debt.
- Continue using your credit cards the right way.
- Avoid bad debt that can lead you back into debt overload.
Comments
ADvice is great, if there is one thing I would like to add, when consumers are being harassed by collectors, prior to sending a cease and desist the consumer needs to understan that this leter can in some instances force a collector to sue the consumer. Te cease and desist basically disables all the collection tools in their arsenal, except the right to sue the consumer. If they want their money bad enough the cease and desist will basically leave the collector with no other option other than suing the consumer or return the account to the original creditor.
I think a better option can often be to send a partial cease and desist. In this variation of the letter you xcan tell the collector to no contact you and your friend via the telephone and that all contact is to be conducted strictly via the mail. This way you can document violations if any to your rights and take legal action against the collection agency, if on chooses to do so.