December 3, 2009

10 Steps to Financial Recovery

The Bankruptcy Law Network has posted an article, originally from USAA Magazine, that outlines ten easy steps for financial recovery.

1. Budget And Save

2. Cut Spending

3. Track Daily Expenses

4. Set Goals-Specific – no vagueness — Hannon’s debtor made a definite timeline and a definite amount.
Measurable–Hannon’s debtor was vague here (”Debtfree”); instead, “I want to pay off $XXX of my debt in five years.”
Attainable–the goal must be reachable. I.e., Ms. Hannon’s debtor should not make a goal of “I want to pay my entire debt of $35,000 in one year.” –not if she is making less than $60,000/year.
Realistic–The goal has to be within the realm of possibility (see above).
Timely–the goal should have smaller checkpoints within the main deadline –to make sure the goal is being approached.


5. Take a Second Job.

6. Pay Off High Interest Loans Systematically.

7. Pay Bills Automatically Online.

8. Find Out Your Credit Score.

9. Fix Credit Score Errors.

10. Do Periodic Check-ups.

We don't cover bankruptcy, but if you have questions about your mortgage or forclosure, feel free to contact us.

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Posted by John G. Watts & M. Stan Herring | | Email This Post

Posted In: Financial Tips

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October 6, 2009

Avoiding Dishonest Debt-Relief Companies

The New York Times has posted an article warning consumers about "several unscrupulous companies that prey on homeowners who are having trouble paying their mortgages."

These companies promise to save consumers' homes from foreclosure for a hefty up front fee. After dealing with these deceptive debt-relief companies, consumers often end up worse than before.

The article quotes Derrick Briscoe, from Tucson, who was told by one of these companies to pay them $2,000 and quit paying his mortgage for three months. His home is now in foreclosure and he is currently seeking to get his money back. These companies often offer money-back guarantees but seldom pay them.

The article advises consumers to...

Be wary of the many companies that advertise on the Web, who offer guarantees and who tell you to send them your mortgage payments. And don’t sign anything without reading the small print — some homeowners have unwittingly signed away their deeds to fraudsters who ultimately evict them.


Legitimate companies, such as the Obama loan modification program, (MakingHomeAffordable.gov) do not charge fees. Consumers should be wary of companies who charge large fees.

If you have had problems with this type of dishonest debt-relief company, feel free to contact us.

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Posted by John G. Watts & M. Stan Herring | | Email This Post

Posted In: Financial Tips

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January 22, 2008

Are Spouses Responsible for the Other's Debt?

Before agreeing to pay a debt of a spouse that you do not think you owe, Alabama Consumers should be wary of claims from aggressive and harassing debt collectors. We recently ran across a blog post from the The Divorce Blog entitled, "Woman Pursued for Deceased Ex-Husband's Debt" that reminded us of some of the pitfalls and horror stories we've heard from clients about being pursued for a debt that is not even theirs.

In this article Ms. Killian started receiving calls from a debt collector for a department store credit card that her husband had opened. Simply put, Ms. Killian not owe the debt. The debt was solely her husband's as she was not jointly on the account. Additionally, Ms. Killian believed she would be able to get the matter cleared up quickly and without too much difficulty for two additional reasons. Her husband had passed away and they had been divorced two years prior to his death.

Despite Ms. Killian sending documentation showing she had no responsibility for the debt, none of this mattered to the debt collectors. They called her repeatedly on her home and cell phones attempting to get her to pay for her deceased, ex-husband's debt. She was only able to get the matter resolved after three years and after involving a Chicago Tribune columnist's help.

Continue reading "Are Spouses Responsible for the Other's Debt?" »

Posted by John G. Watts & M. Stan Herring | | Email This Post

Posted In: Collectors/Debt Buyers , Financial Tips

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January 19, 2008

Good Resource For Alabama Consumers - No Credit Needed Blog

We have found a blog which deals with consumer issues (not legal issues) and focuses on surviving and thriving without credit. To give you a taste of this fine blog, please read this post which reviews some of the best posts of 2007 from the blog No Credit Needed. No Credit Needed has lots of good tips and examples of how to lessen our need for credit.

Check this site as the less we depend on credit cards and other forms of credit, the less vulnerable we are to dealing with credit report errors, debt collectors, and other annoying things that we regularly blog about here. We can't eliminate the risk of these but we can reduce our risk and the No Credit Needed blog is a good place to start.

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Posted by John G. Watts & M. Stan Herring | | Email This Post

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May 22, 2007

How Alabama Consumers Can Raise Their Credit Scores

CNN Money recently ran an article that Alabama Consumers should carefully consider. The title of the article is "6 Ways to Kill Your Credit Score." It gives some great advice on six important areas where consumers can either hurt or help their credit scores. Below is a summary of this list:


1. Don't let your balances on your credit cards exceed 30% of your credit limit.
2. Pay your bills on time. (One expert estimated that late payments of 30 days can result in up to a 60 point drop in your credit score)
3. Having only one or two credit accounts can hurt your score.
4. Creditors like older accounts. So avoid opening a lot of accounts at any given time.
5. Don't close out accounts when you transfer a balance.
6. Review your credit report at least yearly to make sure there are no errors on there that can hurt your score. (If you find errors, visit our website to read an article on correcting errors on your credit report)

The article goes into greater detail about things that can affect your credit score and gives more advice on things to do to boost your score. To read more on the CNN Money article click here.

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Posted In: Financial Tips

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May 18, 2007

Alabama Dave Ramsey Fans - Use Quicken For Envelope System

We know many Alabama consumers follow Dave Ramsey's envelope system - here is a post that discusses how to do this using Quicken.

We appreciate the recent post in the Consumerist and Lifehacker for pointing this out to us.

You can also sign up for our free email newsletter sent out every Thursday morning - we cover topics such as the one in this post. We would love to include you! Just fill out the form below:

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Posted In: Financial Tips

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Watts Law Group P.C.
& M. Stan Herring P.C.
Alabama Consumer Protection Lawyers
Phone: (205) 879-2447
or (205) 714-4443

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