Bill Collectors Getting Out Of Control - Here’s How To Handle It

By: Dr. Boyce Watkins

www.BoyceWatkins.com

One of the groups that was not bailed out during the recent financial crisis has been the American consumer.  Congress took care of the firms on Wall Street, but they didn’t take care of the millions of Americans forced to confront the realities of bankruptcy, foreclosure and uncomfortable confrontations with menacing bill collectors.  It appears, sadly, that every man and woman must find their own way through this financial tragedy. 

Bill Collectors really want their money, like the rest of us. Some of them seem to feel that it’s O.K. to resort to flat out thuggish intimidation to get their money back. That might work on The Sopranos, but it shouldn't work in real life.

Part of the reason abusive bill collectors can have their way with the public is because many citizens do not know their rights. Bill collectors prey on the uninformed in a terrible way:  They may threaten to have you arrested, harass your relatives, call all hours of the night, and engage in other types of atrocious behavior to get their money out of your hide.  

One woman successfully sued a rogue bill collector after he called her repeatedly with threatening language. The woman, a senior citizen, was told by the man to "Stop with the sob stories and pay your god d*m bill!"  This kind of behavior is not acceptable, and bill collector harassment doesn’t have to keep you up at night.

The Federal Trade Commission states that complaints against bill collectors are rising, reaching the highest level they've seen in the past 3 years. Most of the complaints focus on vulgar language, trying to collect more than the amount of the true debt, and extra fees, such as court costs.

You have rights that can protect you from bad and malicious bill collectors. You want to keep these in mind as you work yourself out of debt:

1) There is something called "The Fair Debt Collection Practices Act". If you are not familiar with this document, get familiar with it. You can read it by clicking here.

2) A bill collector cannot contact you at work if your employer does not approve of the contact. Let the bill collector know that this is the case and they must legally stop contacting you at your job.

3) Bill collectors cannot call you before 8 am or after 9 pm. The only exception is if you give them permission to do so.

4) A bill collector can only contact your friends and family if they are trying to find a way to get in touch with you. However, some of them may do this in order to harass or embarrass you. If that is the case, you may want to tell your friends to tell the bill collector, "She does not live here and I do not know how to get in touch with her. Please don't call here anymore." Then, get the bill collector's information from your friend and reach out to them when you can.

5) You can get bill collectors to stop contacting you altogether by sending them a letter telling them to stop. You still must pay the debt, but they won't be calling you during dinner.

 

6) The bill collector cannot curse at you or use foul language and they must tell the truth about how much you owe. They cannot threaten to sue unless they are serious about it, and they can't touch your 401k or IRA.

7) If the bill collectors call you, you can demand that they send you a written notice of the amount you owe and who you owe the money to. If you do not believe that the debt is yours, you can write a letter to them stating that this is not your debt. They must then send you proof that the debt is actually yours.

If you feel that a debt collector has violated any of these rules, you can contact the Federal Trade Commission at www.ftc.gov. Remember that you are not powerless in this situation.

 

Dr. Boyce Watkins is a Finance Professor at Syracuse University and author of Financial Lovemaking 101: Merging Asset with Your Partner in Ways that Feel Good.  He does regular commentary in national media, including CNN, CBS, NBC and BET.  For more information, please visit www.BoyceWatkins.com. This information does not constitute legal advice.  For legal advice, please consult your attorney.  

Free Yourself From Credit Card Addiction

By: Dr. Boyce Watkins

 

www.BoyceWatkins.com

 

1)    Pay less interest by putting your high interest accounts on a low interest one.

2)    Give yourself a cash allowance and reduce yourself down to just one card.  When the cash is spent, then you stop spending.

3)    Only use your credit card for emergencies and large purchases.  Rule of thumb:  If you can’t look at your credit card statements and have something to show for what you spent, then it was not a good thing to spend money on.  For example:  using credit cards for a washer/dryer could be ok, but using it for food, gas and other stuff is not.

4)    Keep it simple – cut em up.  You’ll soon get used to not having them.

5)    Never use the credit card to buy anything if you’ve got the cash for it in your pocket.  Remember that buying something on a credit card and paying for it over the course of a year means you are paying as much as 15% - 25% more for that item than you think you’re paying.  So, add 25% to the price and see how quickly that good deal becomes a bad one.

 

 

For more information, go to my site:  www.FinancialLipo.com

 

 

Dr. Boyce Watkins is a Finance Professor at Syracuse University and author of Financial Lovemaking 101: Merging Asset with Your Partner in Ways that Feel Good.  He does regular commentary in national media, including CNN, CBS, NBC and BET.  For more information, please visit www.BoyceWatkins.com. This information does not constitute legal advice.  For legal advice, please consult your attorney. 

Dr. Boyce Watkins, The People’s Scholar, Speaks on “Obama-mania”

Brought to you by The Great Black Speakers Bureau, the #1 Black Speakers Bureau in the World.
To join the Dr. Boyce Money Advice List, Please click here.


By Dr. Boyce Watkins

www.BoyceWatkins.com

During my recent trip to New York, I was stunned after watching US Airways passengers standing on the icy wings of an airplane floating on the Hudson River. It was only after looking at my cancelled ticket that I realized I was scheduled to fly out of the same city, in the same airport, with the same airline on the same day, at the same time as the people on that flight. They were going to Charlotte and I wasn’t, but that’s still too close for comfort.

In spite of invitations I have to speak and live in big cities, I stay isolated here in Syracuse so I can search for my personal perception of truth within the deepest components of my heart. I seek ideology that is disconnected from hype, politics, financial compensation or other tools used for the tainting of souls and manipulation of minds. I chose not to go to the inauguration and I’ve rarely watched television, all because I wanted to figure out how I feel about recent events without allowing CNN or anyone else to tell me how I should feel.

This morning I watched a Black man….a real brother, Barack Obama, stand and take the oath as President of the United States. When I endorsed Barack long before he appeared to ever have a chance of winning, it was honestly just wishful thinking. I supported the campaigns of Barack, Jesse and Al, mainly because I never believed Bill Clinton to be (as some called him) the First Black President. I also saw something in Barack’s eyes and mannerisms that made me trust him. My “brother radar” gave security clearance, and I knew that only a real Black man would marry an amazing woman like Michelle Obama (the woman I came closest to marrying is actually a beautiful attorney who reminds me of Michelle). I also saw something in Obama’s poise and intelligence that made me believe that he would be good for our nation. My only concern was that I was not sure if a nation willing to elect incompetent men like George Bush would have the vision necessary to choose the best man or woman for the job.

I don’t do media appearances on Fox News anymore mainly because I was disappointed by their attacks on Barack Obama and Jeremiah Wright. I was even more upset with Bill O’Reilly’s statements about having a “lynching party” against Michelle Obama, and the light-hearted death threats made by Fox News Analyst Liz Trotter, who stated that she would “take (Obama) out if she could”. I love Barack Obama, and I was inspired by his ability to make the impossible possible. Like all of us, I was happy to sacrifice to help get him into the White House.

But while I support Barack Obama, I never let myself get into Obama-mania.

While I felt the need to show up and vote, I never chose to “Barack the Vote”.

My position has always been simple: Falling in love with a politician can be a very dangerous thing, and I simply wasn’t going to do it.

Like Barack Obama, Franklin Delano Roosevelt was another President who took over our country during a tough economic time. When Black leaders met with Roosevelt to discuss their justifiable indignation over Civil Rights abuses throughout the nation, Roosevelt simply told them, “I agree with you and I want to do it. Now go out and make me do it.”

The interpretation of Roosevelt’s words is that after the celebrations are over and we’ve come back to reality, we must be sure to do what is necessary to effectively utilize this opportunity. Barack Obama is a good man, I know this from speaking to my contacts on the South Side of Chicago. But we must work hard to ensure that Barack THE MAN aligns squarely and firmly with Barack THE POLITICIAN. We must always be aware of the difference between BARACK OBAMA and the OBAMA ADMINISTRATION.

BARACK OBAMA believes that public schools should get all the funding they need and that education is critically important.

The OBAMA ADMINISTRATION knows that children don’t vote or pay taxes.

BARACK OBAMA knows that 30 – 40% Black male unemployment is an economic tragedy.

The OBAMA ADMINISTRATION knows that being too closely aligned with issues effecting Black men is neither politically productive nor popular in a country that still doesn’t like Black people all that much, especially if they are poor.

BARACK OBAMA knows that, in spite of having a Black President, institutionalized racism in wealth and income levels, health care disparities and other areas will take at least another 100 years to eradicate. He is also intelligent enough to know that reparations are long overdue.

The OBAMA ADMINISTRATION knows that talking about racism using the same language as the United Nations (who states clearly that America continues to maintain a two-tiered society) is something that many Americans simply do not want to hear.

So, as we live in the bliss of “Obama-mania”, please consider this:

The dictionary defines “mania” as “A severe medical condition characterized by elevated moods, energy, unusual thought patterns and sometimes psychosis. Some symptoms are fixation, madness, compulsion, craving, craze, delirium, dementia, derangement, disorder, fad, fancy, fascination, fetish, insanity, lunacy and obsession.”

Like bottles of strong liquor, mania feels good. However, it should only be temporary. You also need designated drivers to keep the political house party under control and get everyone back home safely. Those who remain “high” and detached from reality are easy targets for emotionally void and disturbingly rational political administrations. Any good politician with constituents living in the midst of mania logically understands that there is very little work to do. No one campaigns in the regions they already control.

So, as Roosevelt explained in the example above, we can best show our love for President Obama by being politically intelligent, diligently resourceful, well-organized and focused on the issues. Political engines like the Obama Administration only understand those with the power to churn those engines. The easiest trick in the world is to make us think that racism is over because we have a Black President. Let’s keep our eyes on the prize.



Dr. Boyce Watkins is a Finance Professor at Syracuse University. He does regular commentary in national media, including CNN, BET, ESPN and CBS. For more information, please visit www.BoyceWatkins.com.

Lawrence Watkins, Founder of Great Black Speakers Bureau, Shares Principles for the New Year

By: Lawrence Watkins

Pareto and Parkinson: Old Laws for a New Year

The 2009 year is underway it it’s shaping up to be a great one. I’ve talked to many of my friends and I’ve heard THOUSANDS (Ok. I’m exaggerating) of New Year’s resolutions. Everything from losing 20 pounds, to being in bed by a certain time, to making straight A’s on their transcripts, to finding satisfying careers, to not eating meat, to etc… What is more surprising than this, is that a couple of people that I talked to have more than 10 resolutions.  You may be wondering, “Lawrence, what are your  New Year’s resolutions?” Is it to lose weight? (I have gained more than a  couple of pounds since undergrad) Nope. Is it to make all A’s in school? Not this time.

My resolution is something much simpler, yet it is one of the most powerful forces known to human productivity. It is to implement Pareto’s Law and Parkinson’s Law into all facets of my life. Surely I need more goals than this to have a successful year, right? No, because of this ONE goal, I will have a MORE successful 2009 compared to any other year in my life!

Pareto’s Law states that a minority of causes, inputs, or efforts usually lead to a majority of the results, outputs, or rewards. Parkinson’s Law states that a task will swell up in perceived importance and complexity in relation to the time allotted for its completion. The Law’s are inverses of each other and when taken together, can drastically make you happier and more productive. This is a good time to give thanks to my friend Tim Ferris, author of “The 4-Hour Workweek.” I don’t actually know Tim, but I feel a Bromance going on between us since I’ve read his book 7 times. No other business book has influenced me as much as 4HWW and this is where I first learned of Pareto and Parkinson.

Pareto’s Law and my Life

Vilfredo Pareto was a controversial economist who lived from 1848 to 1943. He was an engineer by training and started his career managing coal mines. He later took a position at the University of Lausanne in Switzerland and explored the income distribution of 19^th century England. He found that 80 percent of the wealth in England was controlled by 20% of the population. When Pareto started to explore this phenomenon more, he noticed that this pattern of imbalance was repeated consistently whenever he looked at data referring to different time periods and different countries.

The critical thing is not to look at the specific 80/20 relationship, but to focus on the main concept. There is an inherent level of imbalance between inputs and outputs. I experienced this phenomena many times throughout my time as head honcho of Great Black Speakers Bureau, a company dedicated to spreading African American thought to the masses. I remember the early days in January of 2007 when I was working to elevate the company off of the ground. I would put in 10-12 hour days/6 days per week personally building the website, making sales calls, emailing potential clients, getting contracts signed, mailing thank you cards, and pretty much anything else you could think of for a starting entrepreneur. Even though the company was growing at an extremely fast rate, I was always exhausted at the end of the day.

Then a life changing event happened in my life. The Lord blessed me with a scholarship to earn my MBA at Cornell University. After a couple of weeks of pure elation, reality started to sink in that I REALLY won’t be able to run my company and go to school at the same time. By this time, we had grown by about 900% since we started the company the year before. The problem is that much of this growth was directly related to my personal inputs. How on earth was Great Black Speakers going to grow, or even maintain, if I wasn’t there to run it? True, I wrote a good B.S. answer to this question in my business school applications, but now I HAD to come up with real solutions.

I now had to do some soul searching and heavy prioritizing. There was NO WAY that I would leave my baby GBS to dwindle and die. Over the course of two days, I turned off all communication with the world and I spent hours of laying out and analyzing every facet of GBS with a single question in mind that I learned from Mr. Ferris. What inputs in GBS generated the majority of the outputs?  After the analysis, I wasn’t very happy with myself and I noticed major ineffectiveness in my process. I then made an vital decision to revive my company; I would go through a business liposuction process and cut off the fat that would cause GBS to die in the transition.

The first thing that I did was to start searching for a new director of GBS. I was looking for a highly organized person who was excellent at selling. I found both of these traits and more in my friend Diana, who I’ve known for many years since my childhood in Louisville, KY. In fact, Diana is an improvement over me in both of these areas. The next thing that I did was to look at the mundane, but essential tasks that consumed most of my time. Some of these tasks included makings cold calls, working on the website, writing thank you letters, filling out contracts. One by one, I started outsourcing these tasks to other companies that specialize in one or more of these areas. It was actually much less expensive than I thought it was going to be. In my next article, I will talk more about outsourcing your life.

The results have been outstanding in the 8 months since I started this process. I have increased my personal income by 250%, while decreasing my GBS workload from 55 – 70 hours per week down to 8 - 10 hours/week. Furthermore, most of the gains have happened AFTER I started business school. From this situation, I learned a couple of lessons:

1. You don’t have to work like crazy to generate sufficient income for yourself.

2. If you surround yourself with the right people and implement the right process, you can accomplish a lot with very little.

Parkinson’s Law

As stated earlier, Parkinson’s Law states that a task will swell in importance and complexity in relation to the time allotted for its completion.  There are two major truisms that I’ve learned that accompany this law:

1. Doing something unimportant well does not make it important.

2. Requiring a lot of time does not make a task important.

The definition of true productivity is simple: Productivity is doing activities that get you closer to your goals. Unproductivity is doing activities that keep you stagnant or take you further away from your goals.

Many people suffer from a common form of laziness: it is called busyness, which is also a disease. This disease is so prevalent that it has brainwashed people to believe that business = busyness. A paradigm shift occurred in my life for me to know that this isn’t true. Working 9 – 5 is an archaic way of doing business. It’s funny how ALL jobs in America take the exact same amount of time to complete. It’s funny because it isn’t true.

Time Compression

Time compression is an important fundamental to manipulate Parkinson’s Law. The law isn’t inherently a good or bad thing, it is just what it is. Parkinson’s Law is similar to fire. Fire can be good when you are cooking, but it would be a terrible thing if your house burns up in flames.  Time compression to complete tasks is harnessing the Parkinson’s Law power to help productivity. What I do is think about an aggressive timeline for a task and then I cut that time by a ½ or 1/3. THAT is my deadline. By doing this, I am forced to focus on the bare essentials ( 20% inputs) of a task and avoid the minutiae  that often clutters projects. Time compression has been one of the hardest concepts to implement into my life and one in which I fail to implement often. But when I do, the results of my improvements are amazing.

Synergies

Taking these two concepts together gives you one simple rule: Focus on the essentials of a task and work like crazy to get those tasks done as quick as possible. However, just because this rule is simple doesn’t mean it’s easy. People often interchange the words difficult and complex. These two words are NOT synonyms of each other. I struggle every day to avoid the laziness of business, and I often fail. I fail less when I ask one simple question: Am I inventing things to do to avoid the important? If I am, I immediately take self corrective measures to put me back on track.

Conclusion

I would like return to my opening statement on why this is my ONLY New Year’s resolution. The reason is that it would be contradictory for me to have 13 New Year’s resolutions and try to implement Pareto and Parkinson at the same time in my life. If I set my resolution as implementing The Law’s, other goals will follow as all encompassing improvements. I’m not against setting many goals for oneself; the exact opposite is true as I have many different personal and business goals. However, the point of The Law’s is to simplify and streamline life as much as possible, which is what I want to do for 2009. As Bruce Le once wrote, “One does not accumulate but eliminate. It is not the daily increase, but the daily decrease. The height of cultivation always runs to simplicity.” So with that, Happy and Fulfilled New Year’s!!!!

 

Lawrence Watkins is the founder of The Great Black Speakers Bureau and an MBA student at Cornell University.  For more information, please visit www.GreatBlackSpeakers.com