You Can Stop Debt Collector Harassment

Many people are well behind in paying their bills, but that doesn’t give debt collectors permission to harass you at work, late at night, after you’ve asked them to stop, or under other conditions.

What Debt Collectors Cannot Do

• Cannot contact you before 8 a.m. or after 9 p.m. your local time unless you give them permission or they have a court order to do so.
• Cannot call you at your job if you tell them your employer prohibits such calls.
• Cannot contact you if you tell them you have a lawyer representing you.

These, and other protections are spelled out in the Fair Debt Collections Protection Act (downloadable PDF file). I will highlight more of your rights over the course of this month.

Send a Cease & Desist Letter
To stop a debt collector from contacting you, write them a Cease and Desist letter telling them to stop all contact with you.

The first sentence of your letter should say: “I am unable to pay this bill because….” or “I refuse to pay this debt because….” and explain your reason. You also have the option of not giving a reason at all.

The second sentence should state: “I hearby assert my right under Section 805-C of the Fair Debt Collection Practices Act to request that you cease any further communication with me.”

After the debt collectors receive your “Cease & Desist” letter they cannot contact you except to indicate that the collection process against you has stopped or that legal action against you is moving forward.

For a sample Cease & Desist letter, see my book Zero Debt.

 

Tip #2: Seven Smart Ways to Pay Off Student Loans Fast — Have Your Boss Do It.

By Lynnette Khalfani-Cox, The Money Coach

You obtained that college degree for a reason: To get a decent-paying job. That job just might pay off your student loans in a way you haven’t before considered. To find out how, read below for my Tip #2 in a series of “Seven Smart Ways to Pay Off Student Loans Fast.” A new tip will be presented each day over the next week. Click here for Tip #1.

Tip #2: A little-known way to get rid of college debts is to have your employer pay off the debt.

Many organizations will do so if you sign an employment incentive contract. This means that as a “bonus” or “perk” to you, your job pays your student loans. In turn, you agree to be a loyal employee and remain with the company for a given time period, say at least two to three years.

Think about it this way: getting an employer to pay off your student loans is just another form of a benefit. Companies offer workers extra cash all the time – like hiring/signing bonuses, performance bonuses, year-end bonuses or holiday gift money, etc. Therefore, money provided to knock out student loans is simply another form of cash compensation. Why are companies willing to consider offering student loan assistance? It’s simple: They want to hire and retain top talent. You may qualify for this perk even if you’ve been in your job for some time.

Bonus Tip: The next time you’re up for a raise or performance appraisal, raise this subject with your boss. You can also bring up the matter to a prospective employer when you’re job-hunting; just wait until after you receive a firm job offer, and have started the salary-negotiation phase.

Follow this advice, and you may not have to pay your student loans at all – your employer will!

5 Steps to Registering a Small Business

By Lynnette Khalfani-Cox, The Money Coach

When the entrepreneurship bug strikes, you want to be sure to obtain the licenses and permits you need. No matter whether you’re in the start-up phase, or you’re growing an existing enterprise, you want to always run your business legally.

The federal government’s website http://www.business.gov explains everything you need to do to register a business and to make sure you’re operating according to the law for any necessary permits, licenses or registrations that may be required

To register a business, there five basic steps:

1. Determine the legal structure of the business (sole proprietorship, LLC, corporation, etc.). The Business Incorporation page on business.gov has more information on this topic. See http://www.business.gov/register/incorporation/.
2. Register your business name (using a “DBA”, “Doing Business As”, “Fictitious Name” or “Assumed Name” as the legal name of your enterprise). Get the DBA filing requirements for every state, along with the District of Columbia, at the Business Name Registration page: http://www.business.gov/register/business-name/dba.html.
3. Obtain a Federal Tax ID (also known as an Employer Identification Number (EIN) or a SS-4, from the Internal Revenue Service). Call the IRS at 800-829-4933 or apply for an EIN online.
4. Register with your state revenue agency (you must do it after securing a Federal EIN). Depending on your business, you may need to get a Sales Tax Permit or a Vendor’s License from your local and/or state government. Start the process by learning the rules and requirements in your state, which can be found on the State Tax Information page: http://www.business.gov/finance/taxes/state.html.
5. Obtain licenses and permits (you may need a general permit or an industry-specific one). Read the Licenses and Permits guide at: http://www.business.gov/register/licenses-and-permits/. It includes a search tool that will explain, step-by-step, everything that is required for your business.

Get more details about each of the five steps described above by going to the ‘Steps to Registering a Business” page of the government’s website.

Good luck with your business!