The federal government decided recently to finally do something for the consumer via the banking industry and credit agencies. But what I find disheartening is the reactions to the move by some people. On news pages run by CNN for example, I’ve run into comments about how the banks have the right to hit consumers with heavy fees because the consumers should know when their accounts are low. Well, yes, but there is a limit to this – and frankly, the banks crossed that line long ago.

I wrote about an experience I had with a bank earlier this year in “Read the Tiny Fine Print on Bank Notices”. That was when I discovered the bank charges $5 for each piece of mail the Post Office doesn’t deliver. That bank fee set off a domino effect, causing a tightly held checking account into overdraft; the overdraft sent fees into the range of the hundreds of dollars. But yet, this was my fault that the bank had this fee to begin with.

Why would the bank have these fees and finance charges? To make money; not to protect the consumer, as they often state, but to make money off of your mistake. At one time in history, not too many years ago (maybe ten) if your account was overdrawn it remained there, no charges added or fees imposed for “daily over the limit” amounts. If the account remained there for more than a week, the bank sent you a notice telling you you had so much time to clear up the account or it would be closed and written off. To get another account, you would still need to pay back that money, but that’s it.

Now in today’s commercialism, banks have a right to charge fees for overdrafts of overdrafts, daily overdrafts, undelivered mail, use of ATMs and sometimes the priviledge to even have a bank card. Oh, and let’s not forget the fees for having a basic checking account when you can’t tie up $1,000 in their bank. But the consumer is at fault for not knowing how to save up enough and budget to avoid all that.


Three reasons this whole system failed – greed, ignorance, and arrogance. Greed on the banks thinking the consumer is basically a cash cow willing to pay whatever fees they impose (see the BofA fiasco with the $5 ATM fee); ignorance on the part of the consumer for not taking the time to educate themselves about basic banking and financial principles; and arrogance on the part of people who think that since they are aware of all this, so should everyone else and its not their problem. We also have a system today where educating the consumer on financial basics has been long ignored. The beginning of the Great Recession proved that.

Somehow I wonder if the banks would like that to continue. Keep the loans amounts low, the spending high and keep the fees rolling in. Yes, I am not a bank advocate can ya tell?

So yes, I do hope the new Consumer Protection Bureau success, even with moderate success. Just the threat of having it around seems to have finally FINALLY started a discussion about things in the general public.

Do you agree or disagree? Are you in favor of some of the things banks do? Don’t be shy, I won’t bite or delete your comment. Constructive discussion is always welcome here.

Everyone has heard countless times how prudent it is to have up to a six months cash reserve; this is known as an emergency fund in case problems arise. But, what if something comes up and you must choose between paying bills and eating? Yes, I’ve been there, and I’m sure others have been too – go look at the food pantry lines. You don’t know if you’re gonna have enough food at the end of the month if you pay all the bills; or the car goes down and you fix that without thinking about your food supply. Or, as the article I pointed to shows, weather hits or a strike occurs or you get seriously ill – now what? You can’t get to the food. This is why I state that having an emergency food supply of at least one month is as important as having an emergency cash reserve.

So, how do you do this. Other than growing your own food, which is the best method for having a food supply, there are the following:

Learn Canning
This is something I seriously want to learn (hopefully this year). I know that canning and storing your own vegetables and fruit is possible just like freezing them; canning them would be just as efficient and cost effective. If you bought all the fruits or veggies in season, at least the ones you cannot grow, the cost is reduced since it is very likely your supply was found locally. Actually, if you shop at farmers markets and local farms, you know this already. Can them up and set them aside with the dates written on them.

Freezing
Now this I’ve done with veggies, meats and meals. I don’t recommend fruits though unless you are freezing juice or preserves. Again, shop in builk, in season and local when possible. I’ve got a small food store about ten blocks away that I walk to for hamburger, chicken and pork. I usually come home with five pounds of each. Break up the packs into smaller meal sizes and freeze those; or cook up a few meals and freeze for later. I try to have about a month supply on hand. When I have the garden going I can get almost through winter with what came out of the ground.


Canned Goods
This is where people may get confused with hoarding. No, I won’t recommend stashing months of canned food you found 10 for a $1. But if you find a deal that allows mixing varieties go for it. Get a months worth. I do that with soups and canned pasta. I also have lots of tomato sauce (since I hate making it and can’t can it yet), and baked beans. Oh, and kidney beans do make a lot of different food from ham and bean soup to stew to salad.

Boxed Items
Be careful of this one. Boxed stuff tends to go bad faster than canned. This is especially true if you have a mouse, ant or insect problem. But otherwise, those 2/$1 things of mac and cheese go a long way. This also goes for all the pasta you find. Spaghetti, and stuff like it, doesn’t go bad, it just dries out if the box isn’t closed right. I’ve used noodles at the end of the month when the other food is all gone. I’ve also mixed pasta with God knows how many different things to create stews, gulash, simple filler meals and believe it or not dog food. Yes, dogs eat pasta when you’re out of food.

Basics
This includes flour, sugar, herbs, sticks of butter, eggs and bread. The first two (flour and sugar) can keep for months when unopened; and when you do open them, stick them in air-tight containers. Herbs should be dried but can last for awhile – they do lose their flavor after a year though. Eggs can last when refrigerated for awhile. And so many homemade foods use eggs you can’t go wrong having them around. As for the bread and butter, freeze them. Get paper sacks and wrap the bread, in the wrapper, in the bag. You can also buy packages of frozen bread dough and stick those in the freezer; these are fun to make and actually last if you have an old bread wrapper saved up. The butter should be actual butter and not margerine; the reason, the margerine will turn watery when you thaw it.

So if you plan your food like you’re supposed to plan your money, getting through the tough months isn’t that tough. Plan for an emergency food supply using basic needs and what you know you will eat. Learn to prepare basic meals that can be frozen and kept. Using foods that can be utilized into many recipes will not only keep you from being bored, but will also keep you from wondering if you’ll have enough to pay debts and eat – or in some cases the difference between utilities and food.

Here’s a link to canning
National Center for Home Food Preservation

And here’s one for freezing
University of Nebraska at Lincoln

Hey anybody with experience in either leave a comment or some feedback. I would love pointers on canning if you got any.

In the days since the housing crash of 2009, it seems stories of tenants being evicted have shown up all over the place. I’ve seen stories in the news, on forums and around my own town. Heck we’ve got one going on right now in the building I live in. So, if you are faced with a possible eviction – what are your rights? Knowing the rights a tenant has during eviction and before eviction may save you lots of stress.

Here’s the first rule of your rights as a tenant regarding eviction. You cannot be evicted without reason or the use of law. Any eviction process must follow the rule of law. You cannot be threatened to move, coersed to move, or be tossed out without due cause and process. Keep that in your head, and you will be fine.

Landlords, banks, and anyone on the end representing ownership of the building must provide advance notice for eviction in any situations. This was proven when tons of landlords were foreclosed upon by the banks. The banks were forced by law to properly evict tenants after the foreclosed property became theirs. Even if the building changes hands suddenly, as in a foreclosure or death in the family, the eviction process does not change.

Here’s the general rule for a time frame if you do get a notice. If you have a written lease, one that is signed by both you and the landlord (or former landlord), that lease grants you an automatic 30-day notice to vacate from the original notice to move. If there is no written agreement, the lease is considered a verbal lease; the time frame shortens considerably to ten days.

How do you know which one you have? If you simply hand the landlord money each week, or every other week, you most likely have a verbal lease. Hotels, rooming houses, shared apartments and yes even sublets within a leased unit are verbal and the time limit is ten days. If you share an apartment with someone, and they are on the lease but you are not – you are a verbal lease while they hold the written lease. Therefore, if the landlord wanted, she could kick you out while leaving the leasee in place.


Now, if you get worried about causing a problem or the landlord getting a burr up their ass, don’t. Landlords cannot by law evict without cause. You can’t be evicted for being arrested, or your living arrangements, or the number of pets you own, or because the Department of Social Services is verifying information. Yes, the landlord has the right to know about potential changes within their building – but that’s about it. Now if the living arrangements or the pets cause undo damage to the building or you can’t pay rent for six months, then yes, you got trouble.

Before I get into what an unlawful eviction is, let me tell you how the landlord is supposed to inform you as part of your tenant’s eviction rights. Any notice must be presented in writing – both to you and the local court. There must be a claim filed at the local court to regain posession of the property or any money owed. I’ve seen a few landlords simply tell people they have “x” number of days to get out. Tell the landlord that you need to see it in writing. Once you get it in writing, go to the local court and make sure there is a claim there; if there is the court will send it to you. Once written notice is given THEN you have the clock ticking but not before. So, in a verbal lease you would have ten days from the date the claim was filed in court and the paper presented to you. A written lease is 30 days from the written notice. There is always a paper trail with the law – always. Any other means of eviction is considered an illegal eviction and contestable in court.

I rented from a man once. I came home from work one day to find the locks changed to my front door. No notice, no warning. It took me half an hour of argueing with him to let me get back in to get my stuff out. That is an example of an illegal eviction. Any eviction carried out without notice is illegal. Landlords or caretakers cannot remove doors, change the locks, remove property or shut off utilities without prior written notice.

So, what happens if you are handed a written notice? You are allowed to ask for a hearing. At the hearing you can defend yourself against the eviction. At the hearing bring any resources, paper, proof, witnesses and whatever to prove the eviction is faulty. Now, the landlord will be there too; but if the landlord fails to show up, you automatically win. If you fail to show up, you are dead in the water.

What happens if there is no written notice? That depends on if your stuff is still inside the residence. If it is, go to the police immediately. They may be coming with you to get your stuff out, or help work out an intermediate resolution to let you stay. If your stuff is already out, or the property removed, you may have a claim for damages against the landlord. That requires a claim in court and possibly a lawyer.

Regardless of what happens, knowing and understanding your rights as a tenant during an eviction eliminates much of the emotional crap and trauma. Using your tenant’s eviction rights may actually help you stay where you are, or stop you from losing most of your stuff.

Here’s a couple of references you might use to help understand the process better. And please, send this along to anyone who might be in the same situation. Knowledge is always more powerful than ignorance.

Legal Assistance Resource Center of Connecticut [http://www.larcc.org/pamphlets/housing/tr_eviction.htm]
Legal Aid of Western Missouri [http://www.lawmo.org/law_llt.htm]

Pet insurance might seem an uneeded expense to most budget concious and the financial expert community – but this is one I take issue with, and regret not having currently. While it may look frivolous, pet insurance is actually health insurance for part of your family.

Here’s a recent article from Reuter’s News Service to back me up.

PERSONAL FINANCE: Pet insurance-a costly necessity | Reuters.

My reasoning behind this is the same reason everyone should have health insurance and medical coverage for everyone in their family – because you honestly don’t know when a thousand dollar visit to the doctor will show up.

Three years ago I had an orange tabby named Alley. She got sick. I still don’t know what from. She was an indoor/outdoor cat. At the time it was either utilities or the vet bill. The utilities won out, but to this day I wish I let the lights go out. She died within three days. I vowed since then not to let that happen again. Since then I have been able to handle the small pet visits, the annual “take the pet to the vet” day ; the ear mites, the tape worms, the fleas and ticks, and the whatever else.

People who have had pets over the course of many years can tell you how much a pet can become a part of the household. Maybe I am biased because I have pets. But I do believe each cat and dog, and maybe other animals, each has their own unique personality and connection to the humans they are associated with. Cats and dogs react differently to each person in the house, and to other pets in the same family – just like they do in the wild in animal “packs”, which are basically families.

When you get to know the personality of your given pet, you get to connect to them as an individual and a soul whom resides with you. Watching that individual get sick, or need medical care without the access to it is a feeling similar to not being able to get a child to a doctor. I had a puppy, Lilly, who died of Parvovirus not long ago. She was a three month old Border Collie/Boxer and was a happy little champ who loved to hold her own leash while we went for walks. I watched her get sick. I tried in vein to find a vet that would take payments, or come to the house because the taxi was too high. We couldn’t afford both. I watched her die, and had a friend burry her in the yard.

Another example is my senior dog, Rambo. He’s a 15 year old Beagle mix. He’s partly blind due to cateracts. We also wonder some days if he’s going deaf. I know he can’t handle steps well anymore. But like dealing with an elderly family member, an elderly dog ages much the same way. It’s like watching a long-time family member quietly fade away and having nothing you can do about it. What happens when something serious goes wrong? What if there is a treatable ailment, and the only option you have due to financial resources is euthanasia? What if you just don’t go to the doctor and one day find your pet laying still?

These are all questions that race through the mind as the pet gets older. Of the eight cats I help care for, I recently found out one is between 12-15 years old. So here we are wondering about yet another animal. She’s not showing any signs of slowing down, but then again neither did Alley until the two days before her death. Why I wonder about her is that she basically adopted me and now doesn’t leave the apartment or the room I’m in.

But to what price do you put on life? If you are under employed, does life take on less meaning because the cost seems bigger? If you have mounting debt, would you blame the credit cards on your ability to afford health care for everyone in the family? And what price would you put on family? I know since 2009 when the Great Recession hit I’ve read too many stories of family pets being left behind.

The emotional, mental and physical toll on both the humans and the pets are far greater than a few dollars a month should you not find a way to work this into a budget. That’s the reason I regret not getting it sooner. And that’s the reason I hope nothing happens before I can finally get there. Meanwhile every day I thank God or whomever that I have the “family” that I have.

So, on top of the fact that I need many things. I also know that I need to get pet insurance this year; because the reality is that pet insurance is health insurance for part of the family.

Having some healthy guidelines while unemployed not only helps to take your mind off of the employment issue; keeping healthy while unemployed also helps maintain your energy levels. It also reduces the potential for health problems such as depression, diabetes, high cholesterol, excess weight gain and a great number of others. With a few simple guidelines for eating, stress reduction, relaxation and a positive healthy attitude, staying healthy while unemployed is an achievable goal. Many of these guides are simple to implement with minor changes in your daily routine. Most can be done with little or no cost and can lead to better habits and lifestyles after you find work.

Your Diet and Unemployment
One of the biggest factors to an unhealthy diet and an unbalanced life is the amount of quick energy we take in. Quick energy is what most people use to get going fast. Foods such as coffee contain sugar and caffeine (both quick to spike and quick to crash energy items); refined carbohydrates also add to this problem (believe it or not, those cereal bars and instant oatmeal are loaded with this); soda and energy drinks are in there too. Another problem, related to these quick energy diets is the number of health problems that come with them – wide mood swings, spikes in blood pressure, headaches, irritability and nervousness.

So, now that we know what to avoid, what can we replace it with and add to our diet? Well how about dealing with stress reduction since there is already enough of that in life. Hell I’ve got that every day I get out of bed. Add bananas, basil, celery, cinnamon, grapes, kiwi and lettuce to the diet or increase them if you already have them (no, this does not mean ask for extra lettuce on a cheeseburger). Heck if you’re unemployed you can’t afford the cheeseburger trust me you realize that quick. Try adding barley, oats and ginseng into the diet to reduce stress. The real grains not the instant kind of barley and oats. Ginseng is good in tea and as seasoning. Speaking of seasoning, throw out the salt and you cut back the risk of blood pressure spikes, heart issues and the need for fluids all the time.

Now, you’re gonna want energy to keep yourself going. Especially if you’re still looking for work. A high protean diet helps here. Low salted peanuts or cashews please. Oh, you can also use pumpkin or sunflower seeds as an instant energy snack. For long term use, add avocados, lentils, raspberries and spinach (yes, Popeye actually had a point).

For missing or additional vitamins and minerals go with an increase in bread and pasta; go with anything but white bread and rice or enriched pasta (all the vitamins and minerals are processed out of the damn food already by the time you see it). Check into chicken, pork and fish (yes that too). Oh and before I forget, although the money went tight this is not the time to scrimp on fruits and veggies! No I actually found that out myself. They balance out a lot of other things. If you must cut back, don’t eat the cheese or drink the milk as much.

One last thing before we leave the diet aisle. Do not, and I repeat, DO NOT limit the amount of times you eat each day. Eating many small meals (like five) avoids weight gain and muscle loss. Why? The body begins to feed upon healthy fat and muscle within itself if not properly maintained. Small quick meals maintain a healthier metabolism.


Rest and Recreation
while you’re unemployed this is a good time to catch up on yourself. Yes, yourself. Creative solutions to your employment problem show up at the damnedest time when the mind is silent. Been there, done that, had a maintenance gig that got me through six months from it. Enjoy the quiet while you have it.

Oh, and while we’re there – get enough sleep for YOU, not the recommended amount for everyone – the amount you need to feel rested. Stress from being unemployed causes a run-down effect and loss of sleep doesn’t help.

Last part here – catch up on what you never got to do before. Try reading. Get your mind off of working. Pick up a hobby. Most people who read this blog will come across my opinion about part-time work coming from hobbies someplace along the way. That’s how I got into writing.

A Positive Healthy Mind
yeah I know after like six or eight months you start panicking about finding a job. And those of you who don’t have work after a year or so, it’s worse. But, you must maintain a positive outlook or you will slide into a depression and your body will begin showing signs of trouble. Here’s a few pointers on this end of staying healthy when you’re unemployed.

Create a positive atmosphere around you. Do this with people, nature and lighting found around you. Make sure you have access to enough natural light and people. I know it sounds stupid, but there’s one thing I found that does work – get yourself up just before dawn (like around 5 or) and find an eastern facing window or door; then watch the sun come up while you munch on a bagel with cream cheese or homemade oatmeal and ginseng tea. Seriously, you don’t know how healing that can be and how you realize you can take on one more day until you have done this.

And if that doesn’t work alone, find help. Seek out counseling or a support network. Do not fall inward. This is the time to extend beyond everyone and everything you know. Which reminds me of volunteering. Not only does that get you out and about, it also creates an ad hoc network that just might lead to another job. I met a founder of a nonprofit volunteering – the meeting eventually led me to be the Board Secretary for the American Disability Coalition and taught me how to write for nonprofits.

Anyhow, the point is employers are seeking resources that are fully operating and ready to meet their needs. You, as an employee, are considered a resource to the employer. If you want to be considered a valued resource you must maintain yourself. To do that, you must stay healthy when unemployed so you can find better employment.

So what do you think? Let me know if any of this helped.

Lately there’s been news made with prepaid debit cards associated with celebrities. The latest being Suze Orman, which actually surprises me, but then again she is out to make money for herself.

This got me to thinking about the fees for bank cards, all bank cards – debit, credit and prepaid. Does anybody really know all the fees they are paying? Is there a way to avoid half of those fees and reduce costs.

While any card will have fees, there are variations to these that can cost you dearly if you’re not careful. Let’s start with the most directly attached to a bank account, the debit card, and work to the one not even connected, the prepaid card.


Debit Cards
Debit cards are linked directly to a bank account, most likely a checking account. These accounts take the funds directly from the account; this would seem the easiest way to control your finances. There are also fees associated with these cards.

The biggest problem is the use of debit cards at ATM’s owned by other banks. Usage fees always apply, and where I live they amount to around $3 per transaction (including balance inquiry). Many larger stores allow you to take money off of the card at the register; the catch – you must make a purchase (usually a minimum amount) and they can also charge a fee for the convenience. The other problem is the overdraft charges. While overdraft protection is available, it is often ignored or rescinded – allowing your account to rack up extra charges and then the card is cut off.

A Word About Paypal
Paypal accounts can have a debit card option. This means you have your own Paypal card to use in stores. It acts just like a debt card in that the funds are withdrawn right from your account balance. You can set up Paypal to draw from your bank account, but to make immediate transfers you need a bank card first; otherwise it takes up to five days for the transfer to be completed.

Now if you don’t have a bank card, don’t worry, use the five day transfer and just plan ahead.

Credit Cards
Having a credit card is a short-term solution with long-term implications. Credit cards are a revolving line of credit issued by banks. No actual bank account is required for regular credit cards. You don’t need to sign anything to get the card; but if you use the card even once, you automatically agree to the terms and conditions to the agreement that came with the card. This alone traps many people to the banks interest rate and other charges; mainly due to no one reads the agreement.

What about those cards that require $300 or so placed in some account before you can use it? Those are called secured credit cards. The money you put into the account isn’t yours; in fact you are handing the bank an additional $300 for the privilege of having a credit card. Kinda stupid for consumers but really smart for the bank. You see, if you mess up and can’t maintain the credit, the security deposit is lost too.

Prepaid Cards
While there is no interest on these cards, and they are advertised as a way to budget your money and control spending, they are not cheap. In the short term they can be more expensive than credit cards. Why?

Charges you wouldn’t think associated with prepaid are in fact part of the agreement you sign on with. Things like a preloading fee, monthyly fees, a fee for not using the card in a certain amount of days are all found on these cards. There is usually a fee to purchase the card as well.

So while you are able to handle money without an account using these cards, the fees and charges will quickly eat up any small balances you try to maintain. Prepaid cell phones used this same tactic for awhile when they first came out.

So which card would be best suited for people? That depends on your situation. Me myself, would take the debit card and make sure I kept track of everything. If you don’t have a bank, use cash. Don’t fall for the prepaid or the secured credit crap. Just simply use dollars and coin. Don’t like cash, get money orders, use gift cards, just don’t fall for the plastic glamor.

Which card do you think is best? What was your experience with any of the above? Join the conversation and lets talk.

I keep reading about how the economy in the US is supposed to be gaining ground. Actually I think its going slower than the papers report but here’s a story from the Washington Post.

Fewer sought unemployment aid last week as modest economic growth reduces layoffs – The Washington Post.

Now, I keep track of unemployment news via Google. While the economy is slightly growing, the unemployed are getting screwed again. Unemployment benefits and extensions are stopping or ending for so many because of this slight growth.

The article below shows how 17,000 Pennsylvanians will stop receiving benefits shortly.

Unemployment Benefits Expire for 17,000

Pennsylvania is facing the same problem as many states – their unemployed are eating up more than they can handle, and the state had to borrow from the feds to stay afloat. And now that the economy of some states is gaining ground again, the consensus is that the unemployed don’t need extended benefits since the economy is improving. The problem is that it isn’t gaining fast enough, and not with wages that will support the lifestyles many people had before all the crashing and bubble bursting.


And this article from Fox News shows how wide the range is between the good and bad news. While people are finding work, many are starting to see a repeat performance of each news report of economic growth. The economy improves, but the jobs never get there; then the economy drops and the jobs never showed up. Rinse and repeat.

From Relief to Dispair

Then there are those who have just simply given up. Why bother when you know there are no jobs out there after looking for two years. And yes, there are those who are still looking since 2009. I actually found out that a local convenience store chain put up notices at stores which are NOT hiring. A local dollar store got so many applications from a door sign looking for two people – they ran out of applications. So no, the job market is not as great as it needs to be.

Meanwhile those who cannot find work are either being squeezed out by the states claiming there are jobs out there, or by those around them claiming they are just lazy. And the result, I’ll guarantee you the welfare roles spike this year. The food stamp numbers already went up, and the rest is coming.

I came across a story in the Washington Post over the weekend.

Have old debts? The collector might be too late. – The Washington Post.

It was about a man and his fight with Asset Acceptance Capital, one of the largest debt collection agents in the US. I’ve come across these guys as well. They use scare tactics and coercion. The trick is in getting you to pay even though they are using the wrong state law, or just the wrong statutes in the first place. Debt collectors need to have a national statute of limitations for collections and how they collect. Yes, the FTC and the FCC both have laws in place, but you need more these days.

The reason? Every state has their own statute of limitations when it comes to the time limit a debt collector is allowed to chase after the money. But without a national statute of limitations for collections, how do you fight the likes of AAC, NCO, and all their kind?

Pay Attention to the Delinquency Date
This is the date the original debt was written off by the original creditor. This is the date the courts use as the starting point for the statute’s clock. A debt is considered time-barred once that clock runs out; meaning the debt cannot be collected upon. The common myth is seven years but that is yet another rule pertaining to debt collections and your credit report.


Pay Attention to Credit Reports
This is where the seven year rule applies. If a creditor notifies even one of the three major credit reporting agencies (TransUnion, Equifax or Experion), that report can remain on the file for up to seven years – if not reported again. Now pay attention to that last part, because that tripped me up once too. The debt collectors (like NCO who loves this rule), wait for 6 years and 11 months – then report the debt again, thus restarting the whole damn seven year clock on the credit file. And that is the way many people get caught up in the myth that the debt never goes away.

Pay Attention to the Type of Debt
Yes, the type of debt determines the time limitations as well. The story in the Washington Post mentions that Ohio has two different statutes, one for consumer debt and another for written contracts. Consumer debt is six years in Ohio, while written contracts span 15 years. This is another trick the larger debt collecting agents use. They will attempt to use the longer time frame as a way to convince you the debt is still valid.

Pay Attention to the State of Origin
And this is the main reason I say we need a national statute of limitations on debt collections. With each state having different criteria, you have to make sure the debt collectors are not using a state with a longer time frame. Like, Ohio is six years, but if the debt collector is from Pennsylvania, they might claim seven years (the limit for PA) – but just won’t tell you that. The debt must be collected according to the state of record for the debtor, not the agent. This also trips people up with national debt collectors.

Pay Attention to the Amounts and Charges
Now this one IS covered somewhat by federal law. The Fair Credit Billing Act is the actual legislation and is part of the Truth in Lending Act from back in the 70′s and 80′s. This law states that the creditor cannot come after you if you dispute the charge within 30 days of receipt of the bill. Then they must determine if the charge is legitimate or not. I wrote this post better explaining that.

Do Not Send a Dime or Sign Any Paper
If you send them anything resembling a payment or a signed document they sent you, you’re screwed. Its basically acknowledging the debt and the whole damn process starts as if the debt was made yesterday. Send them nothing. Write up a letter disputing the claim, get it certified (return receipt and all) and mail that out. Do not sign and send any paperwork they send to you first without consulting a lawyer.

Now what? After paying attention to all that, and it still doesn’t stop, now what? File a complaint with the FTC and your state Attorney General. They open a claim and start an investigation using your paper trail. Make sure you have everything saved that the debt collectors sent you.

But the most important thing to do until there is a national statute of limitations on debt collection is to pay attention. These guys thrive on laziness and fear. Stand up, look them in the eye, and don’t sit down again.

Do you think a national statute of limitations would work? Do you think we’ll ever see one? Throw some comments up and let’s talk about it!

Remember Home Ec in high school? I don’t mean the sewing and cooking part. Remember when things like checking and budgeting were part of the curriculum? What the hell happened to making sure teens were ready for basic financial responsibility when they left school?

Now, I know with budget constraints and all the other crap the politicians throw at us, all that went out the window with recess (another dumb idea). But, how about revising some of the current curriculum or lesson plans so teachers can help prepare their students for life after school. Yes, you could go to the teachers directly – but there will probably be a few that tell you its not their job, or they don’t want to ruffle the school board, or whatever. And the school board will have no clue how to institute such things because of some reason.


So here’s a few ideas to toss at them – just in case they ask.

Math – duh, easy, have a section on basic calculations in regards to simple interest, compound credit, and how to actually figure out a mortgage rate. Yep, algebra. Oh, geometry? Take the measurements from a building and figure the cost of the building per square foot; then reconfigure the building to fit the prescribed budget.

Economics – and another duh. Home economics, grocery shopping and goal planning to start with. How a person’s actions impact the actions and reactions of those around them financially, and in reverse – how the actions and reactions of the world around the student impact their daily lifestyle.

Health – do they even still teach this one? If so, wow. How unemployment, under employment and debt directly affect your health. How health concerns directly affect you financially. How living healthier increases income and lowers debt and medical costs. How health insurance actually functions.

Biology – law of supply and demand. How things live together and make use of resources effectively. The difference between parasitic and beneficial habits. How the actual food chain works, and how it has changed. The effects of financial irresponsibility (over-consumption, improper planning etc.) and the effects of responsibility (recycling and such). Oh, and how most organisms live within their own habitat and within their own means for survival.

History – oh wow, this would be a good slot to show how over-consumption and financial irresponsibility caused housing boons and busts. Job growth and the Great Depression and Great Recession. Hitler, the American Civil War (from both the North and South POV), the effects of poor planning and financially inept actions leading to drought and other problems. Oh, hyper-inflation, deflation, devalued currency (all three can be shown from the American Civil War or WWI and WWII).

English – how to write a resume, a CV and fill out a job application. How to write a cover letter, letter of introduction, or thank-you letter. Email etiquette. How to conduct a job interview (yes this is still part of English class because it is part of public speaking). I would also seriously consider pushing for each student to read one book per semester on a financial topic of their choosing, and then reporting on it.

Languages – yep, here too. How to translate financial documents and text into/out of another language. How to interpenetrate instructional material. How to negotiate in a language other than English (which actually could be fun). And yes, I would include languages such as Chinese, Spanish and Indian.
And I know many schools now require a final exam just to get a diploma to ensure you actually know something. Well, seriously, I would add an entire section on basic calculations and economics. Why? Because if the kids can’t understand those, what the hell good is anything else to them.

Do you agree? Do you disagree? Should we add more to the list?

I was reading through the news via Google, as I’ve started doing on a regular basis lately, and came across this story from the DesMoines Register.

Unemployment claims rise, but so do orders for durable goods | The Des Moines Register | DesMoinesRegister.com.

And after reading the story, it got me thinking. If someone is either unemployed, or under employed, how can they take advantage of the fact that durable goods are still selling? Simple, you build them.

Okay, now, before we all go “huh??” let me get through some definitions and crap so you can better understand my point.

What are durable goods? Anything that doesn’t get used up in a single use can be considered durable goods. Most often things like cars, appliances and machinery are considered under this category. But, what about smaller items, furniture, toys, some types of clothing or bedding. These can also fall under durable goods since they are not meant to be used once and tossed aside.


See where this is going now? If you have a skill at making something, anything (other than food items), can it be considered a durable good? If so, you can make use of the whole durable goods thing and maybe make a dollar or two.

Here’s a few ideas –

Bedding and Clothing
Quilts, pillows, sweaters

Toys
Blocks, trucks, trains, dolls, puzzles, chess or checker pieces and boards, balls, chew toys

Furniture
Tables, shelves, cabinets, crates, beds, lamps, chairs, benches and so on.

Now, let’s not also forget about the recycling aspect of all things. Yes, I’m a big fan of recycling things. But how about these ideas –

Clothing repair
Windows made into mirrors or artwork
Stained glass
Candles
Tote bags from old cloth or jeans

And the list goes on. But you get the idea. No, it will not replace the money you made from having a job; nor will it provide the money to get you out of debt right now – but it will provide an income from part-time work. If you already know how to do it, why not make use of it?

Okay, but how to sell your stuff? That’s the next question I hear.

Ebay
Etsy
Craigslist
Garage sales (i.e your front lawn or side walk occasionally)
Flea markets
Networking

And when you start earning a few bucks from it, consider placing ads in local shoppers, papers, and maybe a hobby magazine you subscribe to. What the hell, you probably paid for the subscription so why not use the tool you have before you?

So yes, you should still be looking to get work, or get a better job, to gain income or reduce debt. But you still have time in the day. If you spend time doing a hobby why not consider adding that to the income as well?

Which brings me back to a point I made about creating a debt paycheck in this post. Use the added income to pay down your debt; its an added expense you do not need. In the same post linked above I also said to invest in yourself – this can also work with the added income should the money start increasing. Getting higher income is a direct result of investing in your ability, the tools you have to gain the income and the work you can do with the ability and tools. And who knows, you could find out that little side hobby might be what you wanted to do for income in the first place.

So what can you make to take advantage of the situation?