Financial Peace University - Part 5

Tonight's round of financial training centered around the Credit Sharks. If you remember nothing else, remember this: No matter how they spin it or try to conceal it, Creditors collect money- bottom line.

We learned the importance of checking your credit report annually, and how to dispute errant information if found there. We learned about the terrible things that creditors do to try and recoup payment when you fall behind, and dispelled some myths about what is actually legal. We also adopted some strategies that one can employ to get back on track when things do get rough.

First, get your free credit report. Federal law stipulates that you are entitled to one free report each year. You do not have to pay for this service, as specified in the Fair and Accurate Transactions (FACT) Act. However, the links for the free reports are often small and relatively inconspicuous, when compared to the toll-based services offered for credit protection, monitoring services, etc. See any one of the three credit entities for more information: Experian, TransUnion, or Equifax. If you find a mistake on an entry in your credit report, or an entry that doesn't belong to you, notify the credit bureau immediately in writing. Once received (by certified mail), they have 30 days to resolve or remove the entry.

Secondly, we discovered what some creditors do to try and collect payment. We also learned what creditors can't legally do to try and collect the debt. For example, creditors cannot:

* Call you repeatedly or contact you at an unreasonable time (the law presumes that before 8 a.m. or after 9 p.m. in your time zone is unreasonable).
* Place telephone calls to you without identifying themselves as bill collectors
* Contact you at work if your employer prohibits it.
* Use obscene or profane language.
* Use or threaten to use violence.
* Speak with you regarding someone else's debt (or with others about your debt).

Finally, If you find that you're in over your head, where even the minimum payments are insufficient to cover your debt, consider placing your bills on the "pro-rata" plan. This strategy reminded me of periods in my life when this knowledge would have come in handy, and saved a boatload of grief and stress. My hope is that you gain from our experiences, as well.

Proverbs 22:7 (Amplified Bible)

The rich rule over the poor, and the borrower is servant to the lender.

Good Night