Stop Annoying Calls From Creditors

Creditors call you at work, home and on your cell phone day and night sometimes every hour on the hour asking for payment. Due to the recession the harassing calls from creditors have increased and have gotten more unprofessional. In some instances consumers are unemployed and therefore can't send a payment but creditors don’t care, they want their money and will do just about anything to get it – even lie.

If you make just one late payment usually 30 days or more late, no matter what your previous payment history you could be placed in the same category as those who avoid paying bills, hide under a rock hoping their creditors will get tired of contacting them for payment or who have filed for bankruptcy.

Most creditors have a Collection Department that calls to remind you to send a payment if the payment is even one day past the due date. The first few calls the creditors seem really nice and ask when you will be able to send a payment. Then they their attitude quickly changes and they use all kinds of threats, lies, emotional guilt, rudeness, etc. to get you to make a payment.

Please don't fall for this! Know your rights as a consumer and the rights that creditors and debt collection agencies have to follow before making a payment agreement verbally or in writing. The two main acts that protect consumers are the Fair Credit and Reporting Act (FCRA) and Fair Debt Collection Practices Act (FDCPA) which can found on the Federal Trade Commission website at ftc.gov/credit.

A creditor or debt collection agency cannot call you before 8:00 am or after 9:00 pm. If a creditor or debt collector contacts you, you have the right to ask them to stop contacting you by phone by saying "cease and desist" and ask them to contact you by mail. If you feel a creditor or debt collector has violated your rights as a consumer file a complaint with the Federal Trade Commission at 1-877-FTC-HELP or by going to their website at ftc.gov.

Never make a decision to pay an overdue bill based out of fear or due to bullying tactics used by the creditors and collection agencies. Take a day or two to calm down, think about your situation and then develop a plan to start paying your debt back. Call the creditor back and tell them your plan to pay the debt back. Follow-up your agreement in writing and keep a copy for your records.

If you fall behind on your payments in the future notify your creditor or the collection agency immediately that you are having financial problems and setup a payment plan with them to prevent bad marks on your credit report and to prevent legal action being taken against you.

Upcoming Events

May 2009
May 6, 2009, Living by Design Show with Cathy Hill, Charlestown, IN, 6pm
May 8, 2009, Booksigning with DC Bookdiva, Washington, DC, 12-6pm
May 9, 2009, Guest on Urban Flow Show, DCTV, Washington DC, 2pm
May 23, 2009, Guest Speaker with Urban Leadership Institute, Baltimore, MD, TBD

June 2009
June 20, 2009, Guest on Urban Flow Show, DCTV, Washington DC, 2pm

July 2009
July 31, 2009, National Black Book Club Conference, Financial Seminar and Booksigning, Atlanta Marriott Marquis, Atlanta, GA

August 2009
August 1-2, 2009, National Black Book Club Conference, Financial Seminar and Booksigning, Atlanta Marriott Marquis, Atlanta, GA

How the 700 Billion Dollar Bailout Affects You

A credit freeze is currently in place because of the current economic crisis. President Bush signed a 451 page bill to implement a 700 billion dollar plan buy bad mortgages and other low valued assets currently held by distressed financial institutions which would allow them lend credit again to businesses and consumers.

The bill will also temporarily expands federal insurance for bank and credit union deposits of up to $250,000 which will help small businesses and many Americans including those will retirement accounts and 401Ks.

The bill will also allow mortgage lenders and banks to restructure home loans, reduce mortgage interest rates or change mortgage loan terms. However, with the bailout, it may be harder to get approved for credit or a loan because banks and financial institutions will no longer be willing to work with customers with bad credit because they don't want to take any more risks.

Approvals will require higher credit scores and possibly larger down payments. Credit card limits may be reduced or credit card accounts may be closed if accounts are maxed out or delinquent. Many small businesses that use credit to make purchases will also be affected which may reduce their revenue or possibly force some businesses to close.

Since this is an election year remind your congressmen of the issues that affect you the most and make your voice heard.

Bad Decisions to Eliminate Debt

Risky Solutions to Debt Elimination
Taking short cuts can lead to compounding woes

Taken from blackenterprise.com

By Zakiyyah El-Amin
August 1, 2008 -- If you are like most people, managing your finances isn't easy in today’s volatile market. As talk of recession threatens the U.S. economy, consumers are burdened with incomes that fail to keep up with inflation and expenses that continue to mount. Desperate for alternative ways to pay down debt, many rely on quick-fix solutions that often cause more harm than good.

Harrine Freeman, founder of H.E. Freeman Enterprises, believes that most people are simply trading one form of debt for another. “If you are already irresponsible with spending money, resorting to fast ways to get money is only a band-aid over the sore.”

The Bethesda, Maryland-based firm helps clients achieve their financial goals and educates them on how to prevent from falling trap to pricey habits. Freeman highlights a few common mistakes that can lead to further debt.

Use of Home Equity Loans
Many rationalize that this is effective because most home equity loans carry lower interest rates than credit cards and have interest that’s generally tax deductable. Understand that unsecured debt, such as credit cards, becomes tied to your home once this type of loan is used to pay it off. If you experience difficulties in making payments, you could default on the loan and risk losing your home. Since the amount that you can borrow is based upon your home’s value, as the value of your home decreases, so does your equity.

“Most people get a false sense of security once the debt is paid and end up accumulating more unsecured debt and putting themselves further in the whole,” Freeman adds.

Withdrawal from Retirement Plans
Tapping into your 401(k) jeopardizes your financial future. When you take money out of your retirement plan, you no longer benefit from tax-deferred compounding on the money withdrawn. Consequently, you have less money in your account working for you, which can lead to a smaller nest egg upon retirement. In addition, if you leave your job, you’re obligated to pay back the entire borrowed amount generally within 30-60 days. If you don’t, the unpaid balance will be treated like a distribution and you’ll owe taxes on the money and be charged a penalty.

Credit Card Cash Advances
Owning plastic comes with many bells and whistles. Credit card companies entice consumers with added features such as fraud protection, rewards, even cash. However, the likelihood of falling deeper into debt when using cash advances far outweighs the convenience of fast cash. If you pay off your balance in full at the end of the cycle, there’s no problem. Few understand that payments made to the credit card will first go toward regular purchases. Since cash advances carry higher interest rates than credit cards, problems arise when balances are carried over and both interest and fees compound.

Use of Debt Consolidation Loans

Debt consolidation is usually regarded as a credit cure-all that replaces multiple loans with a single loan resulting in lower monthly payments. However, the majority of consolidation loans only extend the pay-off period and do not carry lower rates. Since interest on consolidation loans is often higher than personal loans, mortgages and home equity loans, you actually owe more in the long run.

If you consolidate your loans, Freeman advises to use caution. “Many [debt consolidation agencies] are flooded with scams, and lenders who charge exorbitant fees and offer no real solutions to your debt,” she says. Some consolidators add fees directly to your monthly debt payments, without notifying borrowers of the charges. To help deal with debt, Freeman recommends that consumers establish a budget, develop a debt management plan, and consider credit counseling. Most importantly, use common sense by not spending money you do not have.

11 Tips to Cut Holiday Shopping Costs

Most Americans accumulate the greatest amount of debt during the December holiday season. The holidays should be filled with joy and laughter not anxiety, pressure or guilty about spending money during the holidays.

If you don't have the money to buy gifts be honest and tell the persons who are expecting gifts just that. If you have a small amount of buy to buy gifts buy what you can and don't use your credit card to buy gifts unless you have the money to pay the debt off in two or three months. Here are 11 tips to help you save money during holiday shopping.

1. Don't buy gifts on Christmas eve or the day before Christmas eve. Selection is limited and lines at the register are longer.
2. Buy Christmas or holidays gifts during store sales in October or November.
3. Spend less money on gifts this year than you did the previous year.
4. Visit local vendors, you can probably negotiate a good deal on the same items you will find in the department store.
5. Think of creative gifts to give that you can make yourself.
6. Visit the local dollar store to find gifts for children.
7. Get a part-time job until Christmas arrives if need money to buy gifts (this will prevent you from using that credit card).
8. Buy gifts throughout the year so you don't feel overwhelmed with buying all of your Christmas or holiday gifts at once.
9. If you have to buy gifts for several family members try doing a "secret Santa" or "grab bag" so only one family member has to buy a gift for one family member and set a limit on the amount spent. That way everyone gets a gift and you don't have to worry about buying several gifts.
10. Shop online, some companies waive shipping and handling fees during the holiday season.
11. Make getting out of debt one of your new year's resolutions.

Copyright © 2007 H.E. Freeman Enterprises

Instant Grati Syndrome

As a baby when you cried your mother or father came running to take care of you. As a toddler when you cried your parents hugged or talked to you until you stopped. As a teenager when you wanted something you talked really nice and sweet to your parents to get it. Throughout your life you may have received gratification instantly so as an adult it is only natural for you to believe that you should continue to receive this treatment. Unfortunately, this attitude affects every aspect of your life even your spending habits.

It can be difficult to resist the temptation of the instant gratification culture of America which I call the "instant grati factor". Advertisers make consumers believe everything can be obtained instantly by creating instant cereal, instant coffee, instant meals, instant messaging, instant credit card approval and online shopping. I have labeled this behavior as the "instant gratification syndrome" or "instant grati syndrome". To determine if you are a victim of "instant grati syndrome" ask yourself the following questions:

1. If you see an item online or in the store do you buy it immediately?
2. Do you buy an item even if you don't need the item or the item is not in your size?
3. Do you buy an item with your credit card even though you know you don't have the money to pay the bill when it arrives?
4. Do you get upset or defensive when someone questions your poor spending habits?
5. Do you rationalize your poor spending habits by saying things like "I work hard I deserve it", "Why can't I have it", "You are not my father, I can buy whatever I want", "I just had to have it", "I don't have to answer to you", "I want it now", or "I can buy it with my credit card"?
6. Is your home filled with unused items you purchased or items that still have the tags on them?
7. Do you go shopping with money already set aside to pay a bill?
8. Do you hide items you have purchased from your spouse, children or significant other?
9. Do you buy a new outfit every time you go to an event or gathering?

If you answered yes to any of these questions you are a victim of the "instant grati syndrome". Here are 6 ways to avoid the "Instant Grati Syndrome:"

1. Make being debt free your ultimate goal
2. Stop listening to the instant gratification messages
3. Live your life like an investor
4. Surround yourself with people who are investors or people who are in a better financial situation
5. Enjoy the little things in life
6. Stop being depressed

This behavior is difficult to change but it can be changed. Don't buy on impulse - think before you buy and determine if the item is a want or a need. Embrace the old values of working hard and saving your money to buy something. So the next time you buy something with a credit card ask yourself, am I a victim of the "instant grati" syndrome?

Instant Grati Factor and Instant Grati Syndrome Copyright © 2007 H.E. Freeman Enterprises

Being In Debt

When we are in debt we are powerless. Creditors have the power. They have the power to:

1. Close our accounts
2. Send us threatening letters
3. Harass us on the phone
4. Search our neighborhood to find people who have our contact information
5. Garnish our checks
6. Take us to court
7. Ruin our credit
8. Increase our interest rate
9. Charge us outrageous late fees, over-the-limit fees and annual fees

When we are in debt and have bad credit we are at the mercy of the creditors and have to agree to their terms. We beg and plead and silently say "don't close my account", I still need to go shopping for things you can't afford. Don't take me to court, I know I don't have the money but I am trying to keep up with everyone else and look like I have money when I am really living paycheck to paycheck or am almost bankrupt.

We have to learn that everything has a price. What's your price? A nice pair of shoes, a Coach purse, a Hummer, a nice house in Bowie or Fairfax, designer clothes?

What are you willing to pay for those items? Will you sell your soul to buy that pair of Manolo Blahnik shoes that you just have to have.

Unfortunately in this economy many people are in debt due to loss of a job, medical expenses or health issues. I feel for these people who do not have enough money to buy basic necessities and have to use their credit cards to purchase those items.

Unmanageable debt can be prevented. Instead of buying an expensive house or car, but a modest house or car. Keep that for 3 to 5 years then you can upgrade once your financial situation improves.

Know the truth and think twice before you sign over your soul for that shiny new credit card.

My Book Expo America Experience

I just wanted to share with everyone my experience at Book Expo America. My first day there in New York NY on May 31, 2007 I attended a luncheon where I met Blair Underwood and got an autographed copy of his new book Casanegra. Later that evening I had the privilege of meeting and taking pictures with the supermodel Alek, Randall Cunningham and Walter Mosley. I also met Zane and talked with Lynnette Khalfani, author of Zero Debt and Zero Debt for College Grads. I also received advance copies of several books and releases of new books not yet on the market.

June 1, 2007 was the highlight of my trip. I caught up with my dear friend Heather Covington, NAACP Image Award Finalist for Literary Divas: The Top 100+ Most Admired African American Women in Literature. I had the pleasure of meeting Tony and Yvonne Rose owners of Amber Communications Publishing Company, Troy Johnson, Founder of AALBC, Dante Lee founder of blacknews.com, blackpr.com and blackstudents.com, Bernadette Standis, Thelma on Good Times and author of Situations 101. I also did a book signing and gave lots of good advice on how to repair your credit and get out of debt.

On June 2, 2007, I did a book signing and had the privilege of taking pictures of many legends in the African American publishing industry such as Tony Rose, Habi Madhubuti, Max Rodriguez Founder of QBR, Vickie Stringer owner of Triple Crown Publications, Relentless Aaron, Candice Dow, LL Cool J, Joel Freeman of the Freeman Institute, Zane and many more. In addition I met hundreds of other wonderful authors, journalists and publishers. I also had the privilege of doing a book signing and was able to give away all the books and promotional materials I brought with me. It was truly and great experience.

If you are an author I encourage you to attend Book Expo America. It is a great experience and one of the best networking events I have ever attended. I can't wait for next year. Hope to see you there!

http://www.bookexpoamerica.com