Home Buying

Apache is functioning normally

Apache is functioning normally

As if you needed more evidence that it’s not a good time to buy a home.

The latest piece comes from the WSJ, which revealed that renting is 50% more expensive than buying.

This comes on top of a recent Fannie Mae survey that said home buyer sentiment matched an all-time survey low, with only 16% indicating it was a good time.

The culprit continues to be mortgage rates, which surpassed 8% last week and continue to erode affordability.

So is it better to hold off and keep renting or continue to house hunt?

It’s Not Always a Good Time to Purchase a Home

First off, it’s not always a good time to purchase a home, or condo for that matter.

Ultimately, there are better times and worse times, at least if we’re framing the question in terms of investment returns.

There’s also the sheer matter of affordability, which could jeopardize the transaction long-term if the buyer isn’t able to keep up with payments.

That’s essentially what transpired in the early 2000s, when home buyers with no business buying homes went through with the transaction regardless.

Often, this involved some creative financing and perhaps some stated income underwriting to get to the finish line.

In the end, while they qualified for the loan and closed on the purchase, they often didn’t make it past the first few mortgage payments before they fell behind.

Today, the situation is different because many of those questionable loan types, like stated income loans and option ARMs, no longer exist.

You can thank the Ability to Repay/Qualified Mortgage rule (ATR/QM Rule), which was born out of the prior mortgage crisis.

It requires lenders to “make a reasonable, good faith determination of a consumer’s ability to repay a residential mortgage loan according to its terms.”

That’s good news because it means fewer unqualified home buyers are getting approved for mortgages.

And more homeowners have safer loan products, such as the 30-year fixed, as opposed to an interest-only loan or something else that’s potentially high-risk.

Affordability Is a Problem No Matter How You Slice It

While the existing stock of homeowners has never been better, thanks to those aforementioned rules and the low, fixed interest rates they hold, it’s a different story for prospective buyers.

Today’s home buyer is looking at an average mortgage payment that is 52% higher than the average apartment rent, per a CBRE analysis.

This is the worst premium since at least 1996, and even well above the prior housing market peak in 2006 when it stood at 33%.

If you look at the chart above, it’s basically all because of the sharp rise in mortgage rates, which increased from sub-3% levels to around 8% today in less than two years.

That’s unprecedented movement, even if rates remain below 1980s mortgage rates. The bigger takeaway is the speed at which rates climbed higher.

We’re talking a near-200% increase in rates in less than 24 months. Meanwhile, home prices haven’t come down, thanks to a dearth of supply.

And a phenomenon known as the mortgage rate lock-in effect, where existing homeowners with 2-3% mortgage rates feel trapped.

Or are simply unwilling to move and take on a much higher interest rate.

Taken together, we have the worst home buying affordability in 30+ years history.

That buy versus rent premium is also up from 51.1% during the second quarter and 45.3% a year ago.

Again, this is largely due to higher mortgage rates, which have continued to climb higher throughout the year thanks to a stronger-than-anticipated economy.

It Now Takes Over a Decade to Break Even on a Home Purchase

Thanks to the big price tag on a home purchase these days, combined with high mortgage rates, it now takes over a decade to break even, per new data from Zillow/Axios.

The typical home buyer who puts down 3% on a $376,000 home purchase with a 7.045% mortgage rate won’t reach this point for 13.5 years.

This assumes a typical increase in home values, 3% closing costs, 1% in home maintenance fees, along with 6% closing costs and 6% agent commissions paid at time of sale.

In other words, you won’t be able to turn a profit until you’ve been in it long enough to whittle down the balance to offset all the associated costs.

Using that same purchase price, the loan balance would be about $285,000 after 13.5 years of regular monthly mortgage payments.

If the mortgage rate was 3%, the balance would be roughly $240,000 at that time because a lot more of each payment goes toward principal.

Someone who puts 20% down on a house can break even a bit sooner, at around 11.3 years, which is still about double the five-year timeline.

What does this say. That maybe it’s not a great time to buy a home, at least from an investment standpoint.

See: Rent vs. buy calculator

Should You Wait to Buy a House?

At this juncture, I don’t think anyone would call you crazy for pumping the brakes on a home purchase, though everyone has different reasons for buying.

And over time when you bought can matter less, assuming you stay the course (ask the 2006 home buyers who still own).

Aside from housing affordability being at multi-decade lows, the available inventory of homes is also quite poor.

Simply put, there isn’t a lot to choose from at the moment, and affordability stinks to boot.

At the moment, there are only about 2.5 months of supply at the existing sales rate, about half the normal 4-5-month level of for-sale inventory, per Redfin.

So despite the horrible lack of affordability, home prices are holding up just fine. In fact, the median sales price is up 1.9% from a year ago.

In other words, if you’re a prospective home buyer today, you might be looking at slim pickings, intense competition from other buyers, and an 8% mortgage rate.

That sure doesn’t sound like favorable home buying conditions.

Those who bought last year and more recently may have been told to marry the house and date the rate.

The argument is the house can be yours forever but the interest rate doesn’t have to be. The problem is mortgage rates have continued to go up.

So that advice hasn’t panned out so well for those who bought banking on refinancing to a lower rate by now.

This means if you do buy a home today, you need to be prepared to pay the mortgage rate you’re given.

Not a temporary buydown rate or a potentially lower rate in the future that may not materialize.

One compromise might be a hybrid adjustable-rate mortgage, which is fixed for the first five or seven years.

By then, hopefully mortgage rates drift over. If you believe the forecasts, they’re actually expected to drop by 2024. But that’s subject to change. And there’s still the question of just how much.

One worry along these lines is lower mortgage rates could be accompanied by lower home prices. And that could make it difficult to refinance if the mortgage is underwater.

In other words, if you buy today, you better be able to afford it. And you better really like the house.

Read more: 10 reasons to buy a house other than for the investment

Source: thetruthaboutmortgage.com

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Apache is functioning normally

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Debt collectors send debt validation letters show what debts you owe, the amount, and to whome you owe it to.

While a debt collector contacting you can be stressful, it’s important to pause and remember your rights as a debtor. Before paying the debt collector, verify that the debt is actually yours. The debt collection industry is subject to mishaps and mistakes, with some individuals being asked to pay debts they don’t owe. 

That’s why you should receive a debt validation letter from the debt collector proving the debt is yours. If you still don’t recognize the debt, you can send a debt verification letter requesting more information or disputing the debt. 

In this article, we’ll discuss the importance of debt validation letters and what information they should include. We’ll also provide a debt verification letter sample and a free template to help you get started. 

Key takeaways: 

  • Debt collectors are legally required to send you a debt validation letter within five days of initially contacting you. 
  • A debt validation letter should include information about the debt, such as the amount you owe and the original creditor’s name. 
  • If you’re unsure if the debt is accurate, send a debt verification letter to dispute the debt or ask for additional details. 

Table of Contents: 

  • What Is a Debt Validation Letter?
  • What Should a Debt Validation Letter Include? 
  • When to Send a Debt Verification Request
  • Debt Verification Letter vs. Debt Validation Letter: What’s the Difference? 
  • Debt Verification Letter Template + Sample
  • How Long Does a Creditor Have to Respond to a Debt Verification Request?
  • What to Do If a Debt Collector Doesn’t Respond to a Debt Verification Request 

What Is a Debt Validation Letter?

A debt validation letter is written correspondence that debt collectors are legally obligated to send you that provides information about the debt they’re collecting. The letter should include details about the debt, the original lender, and the debt collector’s authority to collect the money. 

The creditor should send a debt validation within five days of their initial contact with you. If you don’t receive a debt validation letter, the debt collector could be an illegitimate person attempting to scam you. Therefore, you should avoid providing sensitive information to the debt collector until you’ve verified they’re legitimate.  

What Should a Debt Validation Letter Include? 

According to the Consumer Financial Protection Bureau (CFPB), the debt validation letter should include: 

  • The amount of debt you owe
  • The name of the original lender requesting payment 
  • The account details associated with the debt  
  • An option to dispute the debt within a 30-day time period
  • An opportunity to request more details about the original lender 
  • A statement acknowledging that the collector will provide verification if you dispute the debt

When to Send a Debt Verification Letter

If after receiving the debt validation letter and you’re still unsure of whether the debt is accurate, you can send a debt verification request to the debt collector. A debt verification request is a letter that you, as the consumer, can send to the debt collector to ask for information about the debt they’re collecting. 

Typically, you have 30 days to send your debt verification request after receiving the debt validation letter. If you don’t send the letter within this time frame, the debt collector will assume the debt is valid and legally continue their efforts to collect. 

Debt Verification Letter vs. Debt Validation Letter: What’s the Difference? 

It’s important to understand the difference between a debt verification letter and a debt validation letter: 

  • A debt verification letter is a correspondence that you, the consumer, send to the debt collector requesting more information about the debt. 
  • A debt validation letter is a document the debt collector sends to you, providing details about the debt. 

Debt Verification Letter Template + Sample

When writing a debt verification letter, it’s important to be clear and concise. State that you’re disputing the debt and list what information you’re requesting from the debt collector. 

Below is a debt verification letter sample and a template to help you get started. Remember to use your own information where there is bolded text. 

[Name]

[Address] 

[Today’s date]

[Name of the debt collector] 

[Address of the debt collector]

Re: [Debt account number, if it was provided to you]

Dear [Name of the debt collector]:

I’m replying to your communication regarding a debt you’re attempting to collect. You reached out to me via [phone/mail] on [date] and provided the following account details: 

  • [Account number, if provided]
  • [Name of the original creditor, if provided]

I am informing you that I dispute the debt you’re claiming I owe. 

If you have reason to believe that I’m still responsible for this debt, kindly provide the following details to ensure I have all the necessary information:

  • The creditor’s name and address who is currently requesting payment
  • The original creditor’s name and address (if different from above)
  • The amount owed
  • The account number
  • Documentation that proves there is a legitimate reason you think I owe the debt, i.e., a copy of the original contract
  • The most recent billing statement the original creditor sent to me
  • An itemized list of any additional interest or fees 
  • An itemized list of any payments since the most recent billing statement 

If you’re providing this data to a credit bureau, please report that I’m disputing this debt.

Sincerely, 

[Your name]

How Long Does a Creditor Have to Respond to a Debt Verification Request?

There isn’t a specific time frame in which creditors must reply to a debt verification request. However, if you send the debt verification letter within 30 days of receiving the validation letter, they must cease all collection efforts until they respond to your letter and provide verification. 

What to Do If a Debt Collector Doesn’t Respond to a Debt Verification Request 

If the debt collector doesn’t respond to your debt verification request, it could be due to one of the following reasons: 

  • The debt collector requires additional time to gather the information you’ve asked for.
  • The debt collector cannot verify the debt. 
  • The debt is beyond the statute of limitations, so the debt collection agency cannot file a lawsuit. 
  • You were dealing with a debt collection scammer. 

If you sent the debt verification letter within the 30-day time frame, the debt collector cannot attempt to collect until they provide the information you requested. If the debt collector continues with attempts to contact you, you can submit a complaint with the CFPB, your state’s attorney general’s office, or the Federal Trade Commission. 

Debt validation and verification letters can help you exercise your rights and avoid potential debt collection scams. If the debt collector fails to verify your debt, be aware that it may be wrongfully hurting your credit. Check your credit report for inaccurate information and report errors to the credit bureaus to potentially remove the accounts from your credit report. 

It’s important to monitor your credit so you can get alerted if inaccurate information is hurting your credit. Try ExtraCredit® for free today for help managing your credit. 

Source: credit.com

Apache is functioning normally

Apache is functioning normally

When you’re looking to purchase your first home, it’s a good idea to familiarize yourself with the different first-time homebuyer programs available in your area. They can help you afford this major purchase.

First-Time Homebuyer Programs

Programs vary in terms of their eligibility requirements and the types of assistance they offer, but all offer some form of financial aid. But what are these programs, and how do they work? Here’s what you need to know. 

What Is a First-Time Homebuyer Program?

A first-time homebuyer program is a government-sponsored program designed to help people purchase their first home. Programs vary from state to state, but generally, they offer financial assistance in the form of low-interest rates, down payment assistance, and other incentives.

A few examples include:

  • The Federal Housing Administration (FHA) 
  • The Veterans Affairs Homebuyer Assistance Program
  • The National Association of Realtors® (NAR)® Homebuyer Assistance Program
  • State-sponsored programs, such as the California New Home Grant Program, can also offer assistance.

Who Is Eligible for a First-Time Homebuyer Program?

Each program has its own eligibility requirements, which vary depending on the program and the state in which it is located. 

However, generally speaking, you’re eligible if you purchase your first home and meet the criteria set by the program. These criteria can range from being newly divorced, a military veteran, or widowed to having a low income and getting ready to buy your first home. You may be eligible for other programs if you’ve already owned a home. Still, first-time homebuyer programs will automatically disqualify applicants attempting to purchase second homes or investment properties. 

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Related read: What Credit Score Do I Need to Buy a House?

How Do First-Time Homebuyer Programs Work?

Once you’ve determined that you’re eligible for a first-time homebuyer program, the next step is to find a program compatible with your needs. Programs typically offer a variety of incentives, such as low-interest rates or down payment assistance, to help you purchase your home. Once you have found a program you’re eligible for, you’ll need to submit an application and meet eligibility requirements.

Once you have been accepted into the program and met eligibility requirements, you’ll need to begin preparations for your home purchase. This may include searching for a qualifying home and making any necessary financial commitments. Finally, once all of the paperwork has been completed, and your financing has been approved, you can go ahead and purchase your home.

How Can I Use a First-Time Homebuyer Program?

There’s no one definitive answer to this question, as each program has different requirements and guidelines. However, if you’re approved for financial assistance, then the money will be given to help you purchase a home. Typically, these programs aren’t for rehabbing a home or house flipping.  If you need help making repairs, consider instead getting a personal loan to finance home improvement. You’ll have a higher likelihood of getting approved for help covering repairs than a homebuyer’s program would offer.

The Bottom Line

A first-time homebuyer program can help you get into the market quickly and easily. They offer many benefits, including reduced interest rates and fees, waived closing costs, etc.

Source: credit.com

Apache is functioning normally

Apache is functioning normally

In This Piece

Are you struggling with medical debt? Are you tired of medical collectors calling? If so, you’re not alone. Studies show that Americans owe more than $88 million in medical debt. Reports also show that 20% of American households claim to have past-due medical bills.  

Fortunately, the government has made changes in some of the rules regarding medical debt. Understanding your rights and how to deal with medical debt collectors can help reduce the number of unwanted calls you receive.  

No matter how big or small your medical debt is, it can impact your finances. Here are tips for how to deal with debt collectors for medical bills.

Gather Information

When a medical collector contacts you, your first instinct may be to pay the debt. Don’t make this mistake. These collection agencies handle hundreds of thousands of claims. Mistakes happen. There are also a lot of scam agencies that are not authorized to collect medical debt.

You don’t want to pay a debt that isn’t yours or pay the wrong agency. To prevent this from happening, do some research.

Start by researching the collection agency. Make sure the agency can legally work in your state. Most states require debt collection agencies to obtain a license. Ask the medical debt collector for their information, including their name, name of agency, street address, company phone number and license number.

You can then contact your state agency to make sure this information is correct. It’s also not a bad idea to contact the collection agency directly to make sure the medical collector contacting you works for them.

Secondly, ask the collector for information about the debt. Find out the exact name on the debt, health care provider and date of services. This data may help you decide if the debt is yours or not.

Can You Ignore Medical Debt?

You don’t want to ignore medical debt. If the debt belongs to you, medical collectors can continue to call you. If it’s not yours, you only have 30 days to file a dispute.

Request Verification of Debt

If you don’t believe the medical debt belongs to you, take the next step by filing a dispute. On the other hand, if you believe the debt is yours, take one more step to make sure. Ask the medical collector to send you an itemized list that includes coding. By law, you have a right to this information. If the medical collector can’t provide this information, try contacting the health care provider directly.

Once you receive this report, check the names, dates and services listed to make sure everything is correct. You can also contact your insurance provider to request a claims history report. This data can show if the insurance company paid for these services.

Also, keep in mind that in most states, minors aren’t able to enter into a legal contract. This means that in many cases they’re not responsible for medical debt accrued when they were a minor. If you were a minor at the time of this debt, be sure to file a dispute.

File a Dispute

You have the right to file a dispute if you think the medical debt is incorrect or doesn’t belong to you, but you must act fast. The law only gives you 30 days to file a dispute from the first contact. In your dispute, explain why you think the debt is not yours, note any mistakes you found and provide any documentation.

Once complete, make a copy of your letter and any backup information first before sending your letter by certified mail. Once the collection agency receives your letter, they must stop contacting you and must investigate your response. They also must notify you in writing of the results of the investigation.

If the agency can’t verify the debt, they must stop the collections process. If, on the other hand, they find the debt does belong to you, they can continue to contact you.

Make Sure It’s Listed as Medical Debt

Medical debt can impact your credit score. To determine this impact, request a copy of your credit reports. You can get one free copy of your credit report each year from the three top credit reporting agencies: TransUnion, Equifax and Experian.

Once you receive your credit reports, make sure the information listed is correct. You also want to make sure the credit reporting agencies list the debt as medical debt. This factor is very important, because reporting agencies must handle medical debt differently. How?

  1. Paid-in-full medical debts are removed from your credit report. Starting in 2022, credit reporting agencies will remove medical debt from individuals’ credit reports as soon as it’s paid in full.
  2. Credit reporting agencies will wait before listing medical debt. Credit reporting agencies will now wait six months to one year before listing medical debt on credit reports.
  3. Credit reporting agencies will only list large medical debts. Starting in 2023, credit reporting agencies will no longer list medical debt that’s less than $500 on credit reports.

Despite these changes, unfortunately medical debt can still impact your credit. Even a slightly lower credit score can affect your ability to obtain a credit card, get a personal loan or purchase a home.

If you find any errors on your credit report, including a medical debt that isn’t correctly listed as medical debt, file a dispute with the credit reporting agency. You can send the credit reporting agency a letter that explains the error, why you think it’s wrong and any proof you have of the mistake.

Can You Negotiate Medical Bills in Collection?

If this debt is yours, now’s the time to focus on how to resolve your medical debt. Most collection agencies are willing to set up payment arrangements to help you pay the debt off. However, you may want to try to negotiate your debt first. Some agencies may be willing to accept a lower payment or agree to 0% interest, for example.

Know Your Rights

When dealing with medical debt collectors, the most important thing is to know your rights. Know what regulations medical debt collectors must follow in your specific state. It’s equally important to make sure the debt belongs to you. Always file a dispute if this debt doesn’t belong to you or if the collection agency can’t provide you with an itemized list.

Source: credit.com

Apache is functioning normally

Apache is functioning normally

Buying your own debt for pennies on the dollar might seem like a great way to get out of debt fast. However, you can’t actually do this due to how debt buying works. Debts of this nature are sold in large bundles to debt collectors and other agencies. Learn more about how debt buying works, why it’s not an answer to your debt concerns, and what you can do to handle debt instead below.

In This Piece

How Debt Buying Works

Debt buying occurs when creditors gather old debts—also sometimes called bad debts—into portfolios. They sell these portfolios of debts to debt buyers at a fraction of the original value of the debt. 

For example, imagine a credit card company that has thousands of delinquent accounts. It may gather 1,000 old accounts that are 180 days or more past due. Say the average owed on each of these accounts is $1,000—that would be a total of $1,000,000 in old debt.

The credit card company might sell the debt at a fraction of that value, such as 15 cents on the dollar. In that case, the debt buyer would purchase the debt for $150,000.

Once the debt buyer purchases this portfolio of debt, they can either try to collect on the original debt or sell the debt. In many cases, the debt buyers go through the portfolio, keeping debts they think they can collect and selling off others in a similar method. 

If the debt buyer is able to collect any of the debt, the money is theirs to keep. So, in the hypothetical example above, if the debt buyer collects $250,000 of the original $1,000,000 in debt it purchased, it makes a profit of $100,000.

Why Are Debt Buyers Used?

The reason original creditors use debt buyers is that at some point, they consider debt uncollectible. They don’t want to spend any more of their own resources trying to collect on the debt. They could simply write the debt off and be done with it, but if they sell the debt to a debt buyer, they’re able to recoup at least some of their losses. 

Many common types of debt can be sold to debt buyers. These include but aren’t limited to:

  • Credit card debts
  • Medical debts
  • Unpaid utility bills
  • Debts related to auto loans or mortgages

Can You Buy Your Own Debt?

You can’t buy your own debt because no one sells individual debts. It doesn’t make business sense on either side to do so. Instead, debts are sold in huge portfolios that cover many accounts. It would be difficult to impossible to discover what bundle of debt your debt would be placed in before the lender sells it off, never mind that you would likely pay more than your debt is worth to purchase both your debt and the debt of hundreds of other people.

For the creditor, selling off large sets of old, uncollected debt is a way to write things off the books while getting at least some payment. For the debt buyer, buying a large portfolio of debt at pennies on the dollar is a conservative gamble. Debt buyers hope that by investing in many accounts they’re able to collect money on some of them.

How to Deal With Debt Buyers

Because you can’t buy your own debt, someone else might. Here are some things you can do to deal with debt buyers if they end up holding your old debts:

  • Make sure it isn’t a zombie debt. These are debts that have already aged out of the statute of limitations for collection. However, they’ve risen to the top of a debt buyer’s or collector’s books, and someone is trying to resurrect them. 
  • Negotiate to settle the debt. Debt buyers didn’t buy your debt for full price, so they don’t have to collect the full amount to make a profit. They’re often motivated to settle at less than the amount owed if you could pay them immediately.
  • Stand up for your rights. Your rights as a consumer are protected under federal and state laws. Make sure you understand your rights so you can stand up for them as you deal with debt buyers and collectors. 

Manage Your Debt Better

Managing your debt in a responsible and proactive way can help you avoid debt buyers altogether because you never let your debts get so delinquent they might be sold. Some things you can do to manage your debt include:

  • Creating and sticking to a budget. When you’re spending within your means and making debt decisions that work with your budget, you’re less likely to fall behind on payments.
  • Pay all your debts on time. Use tools such as debt management apps to reduce the chance you might forget a debt or lose track of one.
  • Being proactive with debts. If you find yourself in a position where it’s impossible to keep up with a debt, such as being temporarily unemployed or dealing with a medical crisis, reach out to the creditor immediately. Many creditors have programs and options to help you deal with this type of issue.
  • Know what’s on your credit report. Keep up with your credit report so you don’t end up with old debt you thought was paid off coming back to haunt you. You can get a copy of all three of your major credit reports and track 28 of your credit scores when you sign up for ExtraCredit.

Source: credit.com

Apache is functioning normally

Apache is functioning normally

This article originally appeared on Radical FIRE and has been republished here with permission.

When you’re planning on moving in with your partner, there are important money conversations you need to have before moving in with your partner. 

I’m planning to move in with my partner after we complete our four-month mini-retirement, where we travel to Central America together. I assume that after we’ve spent so much time together abroad, we should be fine with moving in together. Just one thing that should be discussed is our finances. 

Money Conversations with Partner

Moving in with someone requires some financial logistics to be arranged. You need to discuss who is paying which bills, who is responsible for what, and more. 

You know I love having money conversations, with my friends or with my family. I love to talk about money, that’s why I write on the blog. When no one wants to hear me talk about money for the gazillionth time, I’m just writing a blog post about my money thoughts.  

Now onto the money conversations that you need to have before moving in with your partner. I’ve had all these conversations over the past weekend just to know we’re on the same page. I recommend you also have them when you’re planning to move in with your partner!

Money Conversation #1: Do We Share Our Stuff?

I mean, is everything that was once mine now ours? Is everything that was once yours now ours? It’s about the tangible things that are in the house, not including money. This is something to think about before moving in together. 

If you have things that your partner also has, should you bring it? Or can you use one and get rid of the other one? If there are things that you don’t have yet but you know you need? Will you buy it together or will one of you buy it? 

In relation to that, we get to the next point.

Money Conversation #2: What Will We Do If … ?

You don’t go living together with your partner unless things are serious between you. You need to consider the possibility of the relationship ending sometime very far in the future (OMG!). Breakups and divorces are a possibility that needs to be considered. 

If you’re sharing things, what will happen after you stop being together? This is important for things like furniture and electronics, following the previous point. Will you share everything together, yes or no? 

Related read: 10 Ways Divorce can Affect your Credit

Money Conversation #3: Is The Money Going to Be Ours, Too?

It’s important to think about if you’re going to join finances or not. It’s a very personal thing to think about and it will differ for everyone depending on their situation. If your partner makes a lot less, you can decide to pay more towards the fixed monthly payments. Or vice versa. 

Just keep in mind that you should do something that makes you comfortable!

For me and my partner, we will not join finances. We’re having separate financial goals at the moment. I’m working towards my goal of financial independence and keeping a savings rate of over 80% consistently until we go on our travels. Meaning we’re not on the same page concerning money goals. 

That’s okay for now. He will look for a job after we return and we will decide how we will go from there. 

For our expenses, we will be splitting everything equally. I currently make more than my partner. The rent will be low enough for him to comfortably be covering half. If in any given month he cannot pay his portion of the rent or there are any other difficulties that won’t allow him to pay half of the rent, I will of course help him. 

Related read: How Renting Can Impact Your Credit

Money Conversation #4: How Will You Deal with Changes?

What if I lose my job? Or my partner can’t find a job after graduation? What if we need to move for work or someone can get a promotion abroad? All scenarios can happen. It’s extremely difficult to think about what you want to do when you’re not yet in the situation. It’s a good thing to discuss these matters a little in advance.

If you don’t know now how you will deal with these kinds of changes, think about how you’re both dealing with changes until now? When you’re both quite relaxed under changes, it’s unlikely that those changes will put stress on your relationship. If you’re both sensitive to changes, it might lead to stressful situations and it might be good to address those things at this moment.  

Money Conversation #5: What Do You Value Spending Your Money On?

Before you’re moving in with your partner, it’s important to talk about what you value spending money on? It can significantly differ among people. One person loves to go on big holidays, the other likes to drive their dream car, wants to have a big space to live in, or likes to have the latest tech gadgets. It’s good to know what they value. 

Before you’re moving in together, it’s important to understand what they value and what is important to them. The habits they have around the things they value may have an impact on your joint life together. 

My partner loves playing games and spends a great deal of time playing games both online and offline. He used to spend a good amount of money on getting new games, getting new consoles, or updating his computer. Currently, he doesn’t spend too much money on those types of things, but it’s still something to keep in mind when you’re going to live together. 

I used to buy a lot of clothes, but since getting on my clothing ban I haven’t bought any clothes. On the contrary, I’ve sold a lot of stuff around the house when I decided decluttering was the way I wanted to go. I won’t say I’m exactly a minimalist, but I’ve gotten rid of certain habits and I’m starting with a clean slate when I’m moving in with my partner. 

When we’ve talked about this point, he also asked me to give away/throw out all of the stuff I don’t use anymore. That way, we can start fresh when we’re moving in together, instead of just moving all my stuff simply from one place to another. 

It’s good to know what are the things that you might want to spend more money on, that you want to treat yourself on. For me and my partner that’s both the same thing: traveling. It’s important to know when money gets saved towards that goal and how much money will go towards that specific goal. 

Money Conversation #6: Where Do You Want to Go?

It’s important to discuss where you want to go in life? I would like to know how temporary our living situation will be. Are you or your partner already planning for a different job, relocation, or promotion? Do you want to have a family? Do you want to live in your city apartment with one bedroom, or do you want a big house in the countryside with a huge garden and two dogs?

You can address many questions in order to address where you both want to go. 

When we started dating, I told him I would go to the USA for five months shortly after. I am a dreamer, I love to think about what I want to do in my life and imagine where my life might be going. I already have some of my dreams about starting my own business, traveling, working abroad, and financial independence / early retirement. When I noticed our goals are compatible, even a few years down the line, that gives a huge boost to your relationship up until that point. 

Relationships require a serious amount of honesty, openness, and communication. You’re a team that will figure everything out that will be thrown at you, you’re in this together. 

Source: credit.com

Apache is functioning normally

Apache is functioning normally

Educating yourself about debt collection scams is one of the best ways to avoid them. And if fake debt collectors come calling or you suspect you’ve fallen victim to such scams, there are things you can do to protect yourself.

9 Tips for Preventing Debt Collection Scams

  • Verify the Debt Is Legitimate
  • Verify the Agency Is Legitimate
  • Check Your Credit Reports
  • Protect Your Information
  • Contact the Original Creditor
  • Understand Your Rights
  • File a Complaint
  • Contact the Credit Reporting Agencies
  • Remember Some Debt Is Legitimate

About Debt Collection Scams

The Federal Trade Commission reported that scam and fraud reports were up an unfortunate 70% from 2020 to 2021, and imposter scams were the main culprit. They accounted for $2.3 billion in losses in 2021. 

Imposter scams include any scam that involves a person or entity pretending to be someone else. That includes debt collection scams where someone pretends to be a legitimate company collecting debt from you. Here are a few things you should know about debt collector scams:

  • They can happen to anyone, and some scammers are quite sophisticated. That means it can be possible for anyone to get tricked into giving these people money.
  • You have a right to verify debts before you agree to talk about payments.
  • Doing a bit of homework and following paperwork trails can help you avoid debt collection scams. 

Keep reading to discover the steps you should take when you’re contacted by a debt collector or think you might be the target of a collection agency scam.

Verify the Debt Is Legitimate

You have the right to ask for verification of a debt when you’re contacted by a debt collector. Do this by disputing the debt in writing and asking the collection agency to send a validation letter, including the name and address of the original creditor for the debt. 

A legitimate creditor will provide you with information that includes:

  • The amount you owe
  • The name of the original creditor
  • A notice of your rights, including your right to dispute the debt

If the agency is unable or unwilling to provide this information, they are either violating your rights as a consumer or may be attempting to scam you.

Verify the Agency Is Legitimate

Avoid cash-and-go scams and other issues by verifying that the collection agency contacting you is legitimate. Here are some steps you can take to do so:

  • Ask for everything in writing. Never negotiate or make payment based solely on a phone call.
  • Research the collection agency online. Look for a legitimate website or information on sites like the Better Business Bureau to find out if the business is real.
  • Call your state attorney general’s office to find out if there are any complaints about the agency and if it can legally operate in your state.  

Check Your Credit Reports

Checking your credit reports or your free credit report card helps you understand whether you might owe a debt you didn’t know about. It also lets you see if someone has reported inaccurate information about a debt you don’t owe. When you know what’s on your credit reports and whether or not it’s accurate, fake debt collection calls can’t use that information to threaten you.

Protect Your Information

Sometimes fake debt collection callers want more than your money. They may also try to trick you into giving them enough personal information that they can steal your identity or sell the information to people who would. Protect your information by being careful what you say to these callers. Never answer questions like “Can you confirm your full name or your Social Security number” if someone calls you about a debt. If they called you, they should have the information they need to collect the debt and shouldn’t ask you to provide it.

Contact the original creditor to find out more about the debt, whether you think you owe it or not. If you do owe the debt, you may be able to negotiate a payment with the original creditor that’s less than you’d pay a debt collection agency. 

Understand Your Rights

There are rules for sending someone to collections that businesses must follow, and there are also rules that govern how debt collectors pursue debts. For example, no collector can harass you, and if you’re being harassed, it could be a sign that the agency isn’t legitimate. If you’re on the phone with a debt collector threatening to serve papers, your best defense is knowing what laws are on your side.

File a Complaint

You can submit a complaint with the Consumer Financial Protection Bureau if you believe a debt collector is violating your rights or you’ve been targeted by a debt collection scam. You can also file a complaint with your state’s attorney general’s office. 

Debt collection scams can be a sign that your information is at risk. To run one of these scams, someone has to have enough information to come up with a plausible-sounding debt in your name and contact you. It may be a good idea to freeze your credit report with the credit bureaus. That means no one can pull your credit report for the purpose of evaluating you for a loan or other debt unless you unfreeze your report—and no one impersonating you can cause that to happen, either. 

Remember Some Debt Is Legitimate

Finally, remember that some debt is, unfortunately, legitimate. It may be shocking to hear from a collection agency about an old debt, but that doesn’t mean you don’t owe it. While you can ask that the debt collection agency stop contacting you, if the debt is real, you still owe it. Failing to pay it could result in a lawsuit or further action to collect from you.

Getting Back on Track After a Debt Collection Scam

If you think you’ve been the target of any type of financial scam, including a debt collector scam, it’s important to work to get your credit information and other accounts in order as soon as possible. Working with a credit repair organization can help you attend to those details while continuing to live your life. 

This article has been updated. It was originally published Feb. 3, 2015.

Source: credit.com