Everybody knows that times are tough, and almost everyone who has owned a credit card has run into some type of financial trouble using it. It seems as though the temptation of being able to buy now and pay later may be too much at times, especially in today’s economic hardship, where more people are unable to simply buy now. There is no doubt that credit cards are capable of hurting your personal finances, but overusing your debit card might be what is putting you over the limit.

Instead of depending on debit, it is a smarter idea to head to the bank every week, take out enough cash to get you through that time period, and try to live on that budget. It has been proven time and time again that depending on the cash you have in your wallet instead of plastic will both increase budget discipline and assist you when it comes to reducing impulse purchases. Just think about it: you look in your wallet each time to spend money, and see how much you have left. You will most likely be able to buy only what you need as opposed to what you want.

It is true that debit cards are safer financially than credit. They can stop you from going overboard with a large purchase you can not afford like you are able to with credit. With debit, you are also capable of keeping track of how and where you spend your money. But this rationalization can be thrown out the window when one considers the fact that you can buy a notebook and a pen for a dollar at the local store to use as a new budget book.

The simple fact of the matter is that anything that makes it easier to spend money means that if it is in your possession, you will in fact spend more money. More evidence shows that people spend more with debit, and while they may not go crazy with large buys, they do make a large number of small buys that would be avoided if one were to depend on budgeted money. Overdrawing bank accounts is another way that debit can lead to debt. As you can imagine, banks earn billions in overdraft fees caused by the smallest debit card purchases. It seems unfair and ironic that overdrawing your account by two dollars can penalize you with a much larger fee.

Another good thing about cash is that you can use it anywhere. Processing fees that come from debit cards are growing very expensive for retailers. Many stores, mom and pop stores in particular, demand that you spend a purchase of at least ten dollars if you want to pay for that pack of gum with debit. Card issuers maintain that higher sales from consumers make the expense worthwhile(which again, goes to show you that people spend more with debit), but a number of retailers are starting to protest debit processing fees and asking customers to now pay in cash.

Mallory Megan works for Rapid Recovery Solution and writes articles on medical collection agencies Also published at Using Debit Might Be Deadlier Than It Seems.

Personal finance is an issue that is, well, personal. Due to the delicate nature of this subject, debt collection is closely monitored by Federal and State laws that do their best to protect the privacy of a consumer. The Fair Debt Collection Practice Act (FDCPA) is a federal law that all third party collection agents must follow and it comes with restrictions regulating how a debt collector might approach the issue of contacting debtors and how to preserve their privacy. First off, a debt collector can only speak about your debt to you, the credit bureaus, and the creditor that they are working for. They certainly cannot make up a list of their debtors to distribute to other creditors, or advertise a debt for sale.

The way that a third party collection agent is allow to correspond by mail is strictly monitored. Collections letters are only able to be sent in care of another person if you, the consumer, live at that address, or if you get your mail at that address. If the address where you receive your mail is shared, collections mail should be labeled “private,” or “personal.” Any mail that alludes to the fact that it could be correspondence from a collection agency is strictly prohibited; therefore, the envelopes sent by collections agents can’t indicate the purpose of the letter in any way. Post cards are especially prohibited.

If a collection agent knows your name and your phone number and thus can contact you yourself is not permitted to call your family members or neighbors. When they reach you, they must positively identify that they are speaking with you, the debtor, before they can proceed in their attempt to collect a debt. If a debt collector calls you at your job, you can ask them to stop calling you there and they must comply with your wish.

If a debt collector cannot locate you, they can call your family members or neighbors. In these cases, the collector must identify themselves by name but certainly cannot offer the information that they are a debt collector. They are not permitted to let other people know that you owe money, or talk to them about account details. If a debt collector calls a third party to locate you, they cannot contact that person a second time, or leave any information about your debt on a third party voicemail.

If you are a family member or neighbor being called by a debt collector who is looking for someone you know, the FDCPA mandates that a collection agent is only permitted to call you in order to locate the person you know who owes the money, and only once. If a debt collector thinks you have new information they can contact you again, but only under those circumstances. If a debt collector is contacting you repeatedly about a third party, that can be considered harassment and you can file a complaint with your attorney general’s office.

Mallory Megan works for Rapid Recovery Solution and writes articles on medical collection agencies. Free reprint avaialable from: Respecting Privacy: When Does A Debt Collector Cross The Line?.

The economy is at an all time low, and the amount of debt that American consumers owe is at an all time high. Perhaps you have been receiving a few calls from the debt collector, or some angry letters from your creditor telling you that you better pay up, and perhaps you’ve turned to the internet and have noticed advertisements claiming to offer you debt relief as a quick fix. These offers may sure seem enticing, but it is crucial to remember that, as real as you may want the claim to be, it is still the internet, and it is important to be on the lookout for the truth behind the claim. For example, some “debt relief” places are simply offering a second mortgage. Of course, in this situation, you are going to want to be cautious. These loans will need your house to use as collateral.

A large amount of these debt relief “businesses” are simply charging you to “help” you file for bankruptcy. While it is true that bankruptcy is one way to tackle your financial woes, in most cases it should be seen as a last resort. Filing for bankruptcy is sort of like taking a big red stamp that says “DO NOT GIVE ME MONEY” and stamping it on your credit report for the next ten years. Additionally, your chances of getting a new job, a place of residence, or insurance are significantly decreased.

Before making the choice to file for bankruptcy, it is always a good idea to consider other options. Get on the phone with your creditors. Oftentimes a re-payment plan can be worked out. These re-payment plans have the ability to be modified or paid in installments. Valid, nonprofit credit counseling services are also there to work with you and your creditors to make debt repayment plans.

It is a fact that bankruptcy can end foreclosures, debt collection activities and absolve you of unsecured debts, and exemptions can be provided that permit you to keep certain pieces of property. But personal bankruptcy will not generally absolve you of your fines, taxes, child support, alimony, and student loans.

In addition, a recent change in bankruptcy laws sets up certain hurdles to overcome before you can file for bankruptcy nowadays, no matter what type. Credit counseling from an organization approved by the government is required within six months before filing for bankruptcy. Additionally, in certain circumstances, you may have to pass a test that requires you to prove that your income doesn’t exceed a set amount.

Mallory Megan works for Rapid Recovery Solution and writes articles about new york collection agencies. This article, Don’t Fall For Internet Debt Relief Scams is released under a creative commons attribution licence.