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In parts one and two in this set of articles on the very basics of debt collection, I wrote about the differences between an in house collector and a third party debt collector. I wrote about the different types of ways that debt collectors will locate the debtors, and described a number of statements that the debt collector must say before they can proceed in their attempt to collect debt from you.

Bill collectors refer to these legal guidelines as a “mini Miranda.” If a bill collector doesn’t share this information with you, he or she is violating the Fair Debt Collection Practices Act. If questioned, the debt collector is obligated to tell you her name, the name, address and fax number of her agency, and what creditor she is calling on behalf of.

If it is necessary to do so the debt collector will go over the terms of sale with you, or credit contracts. Bear in mind that your conversation will probably be recorded, and a good debt collector is a sneaky one. They will most likely use their listening skills to try to determine the cause of the delinquency.

Despite what you may have heard from anecdotal stories, or the sensational stories you have heard on the news, most debt collectors are empathetic people, working to make a buck like you. Even if your debt collector is calling aggressively, it is never a good idea to ignore their calls. A debt collector will have the authority to offer a repayment plan, or some other type of help to make it easier for you to pay off of your debt.

At times, they are capable of finding solutions to your financial problems. After all, they work with people like you every day. They can even offer you some helpful advice or they might be able to refer you to some helpful debt counselors. Unfortunately, it has been said that all stereotypes have some truth in them, and there will be an occasional debt collector who may use strong arm or even illegal tactics to collect a debt. If something doesn’t sit right with you, consult the FDCPA, and call your local attorney general’s office to report the incident.

Mallory Megan works for Rapid Recovery Solution and writes articles on medical collection agencies. Also published at The Very Basics Of Debt Collection Part Three.

In my first article in my series on mutual funds, I didn’t even get the opportunity to get to the subject of mutual funds! I very briefly covered securities, which we said is something that represents money. We looked at two types of securities, stocks and bonds. We spoke about stock markets and bonds markets, and how if you wanted to invest in or sell stocks and bonds you are going to need the help of a dealer or broker.

Now let us talk about mutual funds. A mutual fund essentially pools money from a bunch of different investors and invests in different types of securities. Mutual funds will have a fund manager that buys and sells the fund’s investments. Under United States law, the Securities and Exchange Commission (SEC) and the Internal Revenue Service tell mutual funds that mostly all of their net income that they bring in must be distributed to its investors at least once a year.

Mutual funds are structured as trusts or corporations, and the phrase mutual fund is another term for what the SEC sees as an open end investment company. All being open ended means is that at the end of every day, the fund will issue new shares to investors looking to buy into the fund, and the fund has to buy back shares from investors redeeming their shares.

Most mutual funds are monitored by trustees or a board of directors who make sure that the fund is being taken of care correctly and that it is being managed in the best interests of the fund’s investors.

Mutual funds have to be registered with the SEC and they have to give interested investors something called a prospectus that contains information about the fund, the securities it invests in and the fund manager. To Be Continued In Part Three

Mallory Megan works for Rapid Recovery Solution and writes articles on commercial collection agencies. Also published at Mutual Funds 101 Part Two.

Elimination of your debt requires three simple steps:

1. Stop acquiring new debt.

2. Establish an emergency fund.

3. Implement a debt snowball.

Here’s how to approach each step.

Stop acquiring new debt (This step can be accomplished in a minute.)

This may seem obvious, but the reason your debt is out of control is because you keep spending. Stop using credit. Don’t finance anything. Cut up your credit cards.

That last one can be tough. Don’t make excuses. I don’t care that other personal finance sites say that you shouldn’t cut them up. Destroy them. Stop rationalizing that you need credit cards.

* You don’t need credit cards for a safety net. * You don’t need credit cards for convenience. * You don’t need credit cards for cash-back bonuses.

You don’t need credit cards at all. If you’re in debt, credit cards are a trap. They only put you deeper in debt. Later, when your debts are gone and your finances are under control, maybe then you can get a credit card. (I don’t carry a personal credit card. I don’t miss having one.)

After you destroy your cards, halt any recurring payments. If you have a gym membership, cancel it. If you automatically renew your World of Warcraft account, cancel it. Cancel anything that automatically charges your credit card. Stop using credit.

Once you’ve destroyed the cards, call the credit card companies that you just killed. Do not cancel your credit cards (except for those with a zero balance). Instead, ask for a better deal. Find an offer online and use it as a bargaining wedge. Your bank may not agree to match competing offers, but it probably will. It never hurts to ask.

Establish an emergency fund (This step will probably take several months.)

For many, this is counter-intuitive. Why save before paying off debt? Because if you don’t save first, you’re not going to be able to cope with unexpected expenses. Do not tell yourself that you can keep a credit card for emergencies. Destroy your credit cards; save cash for emergencies.

How much should you save? Ideally, you’d like to save $1,000 to start. (College students may be able to get by with $500.) This money is for emergencies only. It is not for alcohol. It is not for sneakers. It is not for the new Rock Band. It is to be used when your car dies, or when you break your leg using roller blading.

Keep this money liquid, but not immediately accessible. Don’t tie your emergency fund to a debit card. Don’t sabotage your efforts by making it easy to spend the money on crap. Consider opening a savings account at an online bank like ING or e-trade. When an emergency arises, you can easily transfer the money to your regular checking account. It’ll be there when you need it, but you won’t be able to spend it spontaneously.

Implement a debt snowball (This step may require several years.)

After you’ve stopped using credit, and after you’ve saved an emergency fund, then attack your existing debt. Attack it with vigor. Throw whatever you can at it.

Many people say to pay your high interest debts first. There’s no question that this makes the most sense mathematically. But if money were all about math, you wouldn’t have debt in the first place. Money is as much about emotion and psychology as it is about math.

There are at least two approaches to debt elimination. Psychologically, using a debt snowball offers big payoffs, payoffs that can spur you to further debt reduction. Here’s the short version:

1. Order your debts from lowest balance to highest balance. 2. Designate a certain amount of money to pay toward debts each month. 3. Pay the minimum payment on all debts except for the one with the lowest balance. 4. Throw every other nickel at the debt with the lowest balance. 5. When that debt is gone, do not alter the monthly amount used to pay debts, but throw all you can at the debt with the next-lowest balance.

I’m a huge fan of the debt snowball. It still takes time to pay off your debts, but you can see results almost immediately.

Supplementary solutions

You can do other things to improve your money situation while you’re working on these three steps.

First, focus on the fundamental personal finance equation: to pay off debt, or to save money, or to accumulate wealth, you must spend less than you earn.

Curb your spending. Re-learn frugal habits. (Frugality is something with which most college students are all too familiar.) You can find some great ideas on the internet. Also check Frugal for Life.

While you work on spending less, do what you can to increase your income. If possible, sell some of the stuff you bought when you got into debt. Get an extra job. (But don’t neglect your studies for the sake of earning more. Your studies are most important.)

Finally, go to your local public library and borrow Dave Ramsey’s The Total Money Makeover. Don’t be put off by the title – this is a fantastic guide to getting out of debt and developing good money habits. I rave about it often, but that’s because it has done so much to help my own personal finances. After you’ve finished, return it and borrow another book about money.

The most important thing is to start now. Don’t start tomorrow. Don’t start next week. Start tackling your debt now. Your older self will thank you.

Rapid Recovery Solution is a third party debt collection company. You are welcome to reprint this article – but get your own unique content version here.

With consumer debt at an all time high, owing a debt can seem very overwhelming. A lot of people have looked into the internet and have seen advertisements claiming debt relief as a quick fix. Alluring as these ads may seem, it is important to be on the lookout for the validity of the claim.

Most of these boast a quick fix, but that quick fix might be bankruptcy. Yes, bankruptcy is one way to address your financial issues, but in most cases it should be a last resort. The fact that you claim bankruptcy stays on your credit report for ten years which means that your chances of getting credit, jobs, a place of residence, or insurance are significantly lowered.

It is always wise to think over other options before deciding to file for bankruptcy. Talk with your creditors. Oftentimes, a re-payment plan can be chisled out that is modified or can be paid in installments. Credit counseling services can work with you and your creditors to work out debt repayment plans.

If you are considering a second mortgage, be careful. These loans require your house as collateral. Bankruptcy can stop foreclosures, debt collection activities and it may get rid of unsecured debts. Exemptions are provided that let you keep certain assets. However, personal bankruptcy does not usually eliminate child support, fines, taxes, alimony and in some cases student loans.

It will not usually permit you to keep your property if your creditor has a security lien or mortgage that has not been paid. A relatively recent tweek in bankruptcy laws makes certain hurdles that you have to overcome before you can even file for bankruptcy, it doesn’t what type of bankruptcy. First, you have to get credit counseling from an organization approved by the government within six months before filling.

Also, try to keep in mind that in certain cases you must pass a test that requires that you confirm that your income level doesn’t exceed a particular amount.

Mallory McGuinness is employed by a collections agency that works with a debt collection lawyer. She also does stories on business, finance, the credit industry and collections agencies. Grab a totally unique version of this article from the Uber Article Directory

Bad debt can be likened to a monkey on your back. It is always on your mind, and sometimes the stress associated with it can be crippling. You may be able to take solace in the fact that you are not alone. There are thousands of people just like you in the United States that are going through the exact problems.

Filing for bankruptcy may seem like the best choice at the present moment. It can help you to get around loan payments. But before you jump the gun, think long and hard. If you end up filing for bankruptcy, this will stay on your credit report for ten years and any attempt to improve credit, obtain a job or residence, or car will be futile.

Something to consider is professional help to take care of your credit card debt. This is important, so do some research. Check the internet, talk to financial agencies and ask for recommendations from others who have gone through the same problems. Be sure that your debt settlement agency is legit. Many tout promises of debt annihilation but will merely tell you to file bankruptcy and charge you to do it.

When you have found the perfect debt settlement agency, work with them step by step. One of the amazing things about this is that the company will work and communicate with the bank or card company for you. This means no more phone calls from the banks or collection agencies.

Also, debt settlement corporations have a professional relationship with the banks and other such establishments that can help you. They will let the creditor know that you are on the verge of bankruptcy and that they will not collect anything if this is going to happen. This will surely inspire the creditor to work out a re-payment plan.

So, now you can see why considering help from a professional to settle your debt makes a huge difference. You could use this way to obliterate all of your credit card liabilities; one at a time from the card that charges the highest quantity of interest to the card with the lowest.

Mallory Megan is employed by a debt collection company. She also composes articles on business and finance, the credit industry and debt collection.