My Stupid Tax 2009

Welcome to the first Divine & Debt Free's stupid tax edition. Today I am going to share with you one of the stupid things I did in 2009 that I wish I hadn't. Hopefully this will inspire you to A. share your stupid money stories and B. learn from other folks mistakes including my own.

So here is the story.....

It was a cold day in.....March and me and my now ex boyfriend (stupid thing A.1 lol) had been dating for several months. We had been talking about new cell phones for at least a month at the time and we thought it would be absolutely cute to do those "couple phones". Now don't go laughing at me because I know a few of you people (won't name names) who have done silly things to symbolize a mile stone in a relationship..... but I digress.....

His contract on his phone was going to be ending soon and I had a 1 year old ratty t-mobile phone that was falling apart by the second. He agreed to put me on his account (stupid thing A.2) and we would "share" the bill. So we get into the AT & T store and as soon as I walked in I saw it..... yes I had one of those moments where you see something and a beam of light shines over it like it feel straight from heaven? yea thats it. It was the newest version of the Iphone and I just had to have it. So I agreed to pay for his phone which was $50 bucks with a new 2 year contract and my phone was $200. I think I spent almost $300 dollars that day (No I wasn't budgeting for this either)

Needless to say we break up 2 weeks later (don't laugh we really did). Due to my better credit rating I was able to actually get the phone in my name so I did (stupid thing A.3). So here I am with a brand new Iphone and what seems to be a bill that keeps spiraling out of control. But did I stop there?? Hecks no, I had decided that after sooo much sacrifice (an exaggeration on my part) that I deserved this phone and I was going to keep it no matter what the cost.

Fast forward to 3 weeks ago....

after going through way to many hoops and loops with AT&T I decided to dump the phone. Turns out the only thing I was doing on it was getting in trouble at work from playing on it so much!! But thats not all, I looked at my spread sheet (cuz im a nerd) and looked at the year end total for cell phone use and it read a whopping 1,743 dollars!!! Yes you read right, almost 2,000 on a stupid cell phone(just one) !! I was so mad at myself I could have just passed out. You do realize all that money could have gone towards my debt don't cha......

Today, I am sitting here with my lil Tmobile phone with NO bells or whistles what so ever and welp I haven't croaked from boredom yet so I guess its ok. The bill is a LOT less and I still get to do what I love which is talk. I feel so bad for what I did and ever worse that I let it get out of control, but hey I said I was getting out of debt, I didn't say I was free from stupid lol.

So what are your stupid stories for 2009? Please share so I can feel better!!

How To Fight Back Against Creditors

Have you ever had a bill collector call and threaten to take your paycheck or your children? I have a few times and I can't tell you how upsetting it is to have someone harass you day in and day out.

Interestingly enough I have been on BOTH yes BOTH sides of the fence. I have been the debtor and the creditor calling doing the harassing. A few years ago (5 exactly) I worked for a large collection agency. We collected mostly tax money (the worst) and traffic violation payments. Though the government is held to a semi moral standard we still had the ability to brow beat people into paying us. Back then I didn't really understand who I was hurting I just wanted to make my bonus bigger.

Now being on the other side of things its really frustrating to hear stories of people (including my own) dealing with creditors. They can be so nasty and cause stress beyond belief. Some creditors have even talked people into paying bills they don't owe or paying them before they fed their own family. Can you imagine having a $400 credit limit and a foreclosure sign on your door just because of a threatening phone call?? Its the pits and way to many people have dealt with this more than we know.

Today at Divine & Debt Free we are going to share ways of how to FIGHT BACK! Thats right we are going to get those nasty bill collectors off your back once and for all. If your skeptical about these tactics trust me they work because I have used them more than once even!! So lets go.....

1. Hang up on Them - Oh yes this sounds like the most obvious thing to do outside of pretending to speak another language, but it actually works. There should never be a time where they can get you so worked up that you are about ready to hand over every dime in your pocket, EVER!!! If they can't be nice, you can't either.

2. Send a cease and desist letter - according to the FAIR DEBT Collection Practices Act (FDCPA), They must stop contacting you immediately!! However do NOT send this letter via regular mail. It may cost you a few extra bucks to send a letter certified return receipt requested but it is well worth it. They are really good at getting people worked up especially at work and in these difficult economic times that is the last thing we need. Here is a sample letter.....

Date

Your Name
Address
City, State Zip


Debt Collector’s Name
Address
City, State Zip

Re: Account Number

Dear Debt Collector:

Pursuant to my rights under federal debt collection laws, I am requesting that you cease and desist communication with me, as well as my family and friends, in relation to this and all other alleged debts you claim I owe.

You are hereby notified that if you do not comply with this request, I will immediately file a complaint with the Federal Trade Commission and the [your state here] Attorney General’s office. Civil and criminal claims will be pursued.

Sincerely,

Your Name

3. Don't answer the phone - I am sure with all the technology today we ALL (99.999%) have caller ID. So why not just block the number or don't answer. Nothing is actually going to happen, other than them calling you back. I wouldn't advise this at work but it works fantastic at home.

4. Sound a bull horn in their ear - I just think this would be absolutely funny to do......

Bill collectors can threaten as much as they would like, most of them don't get around to actually suing on a bad debt until months sometimes years after the delinquency has taken place. If you are struggling with debt I urge you to first take care of what we call the 4 walls FIRST

1. FOOD
2. SHELTER
3. LIGHTS
4. TRANSPORTATION

Yes this means your house payment has to come before you pay ANY CREDIT CARDS!! I know this may not be what some people are used to but this is honestly the best way and it works every time. If you don't have any money to pay creditors after these 4 things are done then oh well we will try again next month after the emergency fund is fully funded (which you don't use to pay them either).

If you are unsure if your wages are going to be garnished or you are having threats of being sued, call your local court house they can check if you have pending law suits against you. Usually a sheriff delivers summons papers for you to sign if you are actually going to be sued.

So now you have the tools to fight back, if you have additional questions or need a little pep talk just let me know!