Friday’s need-to-know money news

Today’s top story: 7 ways small-business owners can save on taxes in 2022. Also in the news: Check your DMs for debt collectors and scams, coupling your finances for Valentine’s Day, and how one couple reconciled their relationship with money.

7 Ways Small-Business Owners Can Save on Taxes in 2022
Seven things entrepreneurs and independent workers can do to lower their tax bills and their anxiety this filing season and in the year ahead.

Check Your DMs for Debt Collectors and Scams
Sites like Instagram, Facebook and Twitter could be where debt collectors slide into your DMs.

For Valentine’s Day, Couple Your Finances
Money coaches discuss how couples can combine finances and bank accounts while balancing autonomy and partnership.

How My Fiance and I Reconciled Our Relationships With Money
When differing financial attitudes collide, communicating openly is the best way to bridge the divide.

Monday’s need-to-know money news

Today’s top story: What new debt collector rules mean for you. Also in the news: A new episode of the Smart Money podcast on holiday travel and giving money advice to family, what to buy (and skip) on Black Friday, and questions to ask your realtor when selling your home.

What New Debt Collector Rules Mean for You
Find out where they can contact you.

Smart Money Podcast: Holiday Travel and Giving Money Advice to Family
The holidays are almost here.

What to Buy (and Skip) on Black Friday 2020
Start making your lists.

Questions to Ask Your Realtor When Selling Your Home
Important information.

Friday’s need-to-know money news

Today’s top story: The upsides to thinking about when you will die. Also in the news: The upside to ETFs, how debt collectors are invading social media, and 6 financial military benefits for service members and veterans.

The Upsides to Thinking About When You Will Die
A good life expectancy estimate helps you know how much to save, when to retire and when to start Social Security.

Sure, Stocks Are Fun. But ETFs Are Smart
Diversify.

Debt Collectors Can Find You on Social Media Now
Debt collectors are sliding into your DMs.

6 Financial Military Benefits for Service Members and Veterans
Military members and their families have access to special benefits, and new rules make these programs even more valuable.

Thursday’s need-to-know money news

Today’s top story: Start thinking bankruptcy now to maximize your options later. Also in the news: Why this is the perfect time to teach teens about credit, how to protect your stimulus relief check from debt collectors, and how to return a deceased relative’s stimulus check.

Start Thinking Bankruptcy Now, to Maximize Your Options Later
Timing is everything during the pandemic.

This is the perfect time to teach teens about credit
5 ways to prepare Gen Z for the real world of debt and finances.

How to protect your stimulus relief check from debt collectors
Turn that check into cash quickly.

How to Return a Deceased Relative’s Stimulus Check
Unfortunately, you can’t keep it.

Monday’s need-to-know money news

Today’s top story: Letting go of shame over your debt. Also in the news: How to get the highest credit card welcome bonuses, 3 tax mistakes you’re probably making today, and what to do when debt collectors keep calling for someone else.

It’s Time to Let Go of Shame Over Your DebtIt’s counterproductive and does nothing to solve the problem.

https://www.nerdwallet.com/blog/travel/how-to-get-highest-credit-card-welcome-bonuses/
Get ready to shop around.

3 Tax Mistakes You’re Probably Making Today
Avoid these mistakes at all costs.

What to Do When Debt Collectors Keep Calling for Someone Else
Knowing your rights.

Thursday’s need-to-know money news

Today’s top story: Is better credit worth exposing your banking data? Also in the news: The average 401(k) balance by age, 8 common and costly homebuying myths, and why debt collectors may soon be able to text you.

Is Better Credit Worth Exposing Your Bank Data?
Other ways to build credit.

The average 401(k) balance by age
Balances typically increase as you age.

8 Common and Costly Homebuying Myths
Don’t get trapped.

Why Debt Collectors May Soon Be Able to Text You
And email you.

Tuesday’s need-to-know money news

Today’s top story: 5 things debt collectors can’t do – and 5 they can. Also in the news: The pros and cons of dropshipping, protecting intellectual property, and how to choose a rewards credit card.

5 Things Debt Collectors Can’t Do — and 5 They Can
Learn the limits.

Dropshipping Cuts Your Inventory — and Control
The pros and cons.

Protecting Intellectual Property: A Guide for Entrepreneurs

How to choose a rewards credit card
Optimizing your rewards.

Tuesday’s need-to-know money news

bills-smallToday’s top story: Why you should validate a debt before paying a collector. Also in the news: How to choose a Medicare Advantage plan, how and when to report tips for tax purposes, and how people survived their financial nightmares.

Validate Debt Before Paying a Collector, Avoid Costly Errors
Make sure the debt is legitimate.

How to Choose a Medicare Advantage Plan
Open enrollment continues through December 7th.

How and When to Report Tips for Tax Purposes
Deciphering the rules on tips.

Scary Money Moments: How 5 People Survived Their Financial Nightmares
Just in time for Halloween!

Thursday’s need-to-know money news

teen-creditToday’s top story: What your high schooler needs to know about credit cards. Also in the news: Saying goodbye to foreign transaction fees, the new calling limits facing debt collectors, and how letting your adult child stay home could benefit you financially.

Credit Card Basics for High School Students
What your high schooler needs to know.

As International Travel Grows, Foreign Transaction Fees Get Left Behind
Bid farewell to foreign transaction fees.

Debt collectors could face new limits on calls
Changing the collection game.

Read This Before You Push Your Deadbeat Millennial Out of the House
Having your adult child at home could be financially beneficial.

Q&A: How to deal with debt collectors

Dear Liz: After struggling financially for seven years, I’m getting a good lawsuit settlement. After taxes, I’ll be set. I want to pay my bills but to the actual company — for example, the credit card company, not some bill-collecting clowns that threatened me with “the sheriff will come over and arrest you” or “your brother and sister will inherit your debt” and other lies.

I also don’t want to pay these inflated fees from bill collectors that have no rhyme or reason and sound like they are throwing darts at numbers board.

Finally, I’ve asked a couple of the bill collectors to provide me with the name and contact at the original company so I can verify that they have authorization. But with data being compromised every day, how do I know they are legit?’

Answer: You typically don’t have the option to pay the original creditor once a debt collector enters the scene. Chances are good the original creditor long ago wrote off the debt as a loss and sold it, often for pennies on the dollar. You’ll know the bill is in the hands of a debt buyer if you check your credit reports and the original creditor shows the amount owed as zero, said Michael Bovee, president of Consumer Recovery Network, a debt relief company.

You’re right to be concerned about paying the right party — not because of database breaches but because of the lousy records and bad practices that plague the debt collection industry. The same debt may be sold to multiple buyers or come with so little identifying information that it’s unclear who originally owed what to whom.

Before you pay any debt, you should ask in writing for it to be verified. By law, debt collectors must provide you with the name of the creditor, the amount owed and how you can dispute the debt or seek further verification. The Consumer Financial Protection Bureau offers sample letters on its site, www.consumerfinance.gov.

The CFPB also accepts and investigates complaints about collection agencies, such as those who violate the federal Fair Debt Collection Practices Act by harassing people or falsely threatening to arrest them (you typically can’t be arrested for debt).

It’s understandable that you don’t want to deal with a rogue collector or an unethical collection agency. If the debt is beyond your state’s statute of limitations and you can’t be sued over it, then there’s little reason to open negotiations with such bad actors. They could renege on any deal they make with you and simply sell the debt to someone else, starting the whole circus over again.

If you must resolve the debt — you typically can’t get a home loan, for example, if you have open collection accounts showing on your credit reports — then you should call the original creditor and verify which company bought the debt. If the debt wasn’t sold but assigned to a collection agency, get the name of that firm. Then you can call and negotiate payoffs low enough to offset any fees or interest that have accumulated, Bovee said. But do so before you apply for the loan and don’t let the collectors know you need to clean up your credit, since that weakens your bargaining position.

You’ll want to arm yourself with as much knowledge as possible before you contact any collection agency. You can download a free e-book at DebtCollectionAnswers.com, a site run by consumer advocate Gerri Detweiler, that can help you get started.