Category: CREDIT BLOG

In last week’s post, I told you about how I do odd things to get exposure to people who can inspire me and help me make important shifts in my life…
My point was this: If you want to change your financial circumstances, you could consider surrounding yourself with people who are going to help you get out of debt, fix your credit score, or increase your savings. By getting exposure to these people, you will naturally be exposed to ideas, habits, and activities that will help you change paths.
These people come in all shapes and sizes. You could decide to start having a weekly conversation with your sister- in-law, who is a master at budgeting and living on a shoestring. If you are a mortgage broker who just can’t make ends meet, you could find a mortgage broker who figured out how to make money in this economy.
Or you might want a mentor who can help you make other important shifts in your financial life or even in your career…
So if you are looking to meet with the Zig Ziglars, Ken Carters, and Rick Carusos of the world, I thought I’d pass along a strategy I use.
It’s called the 7 Magic Words, and I’ve used the strategy to get in front of all sorts of people…
So what are these seven magic words that will help you get exposure to the people you need to meet?
Here they are:
“What can I do to support you?”
These seven magic words open all sorts of doors.
Let’s say you are an employee at a large company. You want to have lunch with the head of the company, but he’s a busy man, and you are just one more face in the crowd.
Imagine what would happen if you sent your boss an email that said something like this …
Dear Steve:

What can I do to support you?

I want to be a superstar employee— someone who is with this company for many years; someone who becomes an integral part of the team. So what can I do to contribute more to the company?

Can I take you to lunch and find out more about you and your ideas for the company?

I know you are busy, and that your time is important. This week, I have $25 in disposable income. I know it isn’t a lot, and it certainly won’t compensate you for your time, but I’d be happy to donate it to a charity of your choice if you could spare an hour for a lunch meeting. And if you don’t have time for lunch, maybe we could grab coffee and talk for 15 minutes.

Sincerely,
Jason
If you promised to give your last $25 to your boss’s charity, do you think he or she would take notice of you? And do you think he or she would be willing to consider you for a raise or promotion when a spot opened up? I know I would!
Of course, if you are up to your neck in debt, you might not want to donate $25 to charity. No problem—let your boss know that you’ll donate five hours to a charity of his or her choice! Or do something—anything—to let your boss know that you are driven and want to move your life forward.
As always, let me know your thoughts by leaving a comment below!
– Philip Tirone

Call me crazy, but I once sent a  seven-day bowel cleansing formula to  President Clinton. He looked  unhealthy at the time, and I was a  concerned citizen …
Another time, I convinced billionaire  Rick Caruso to have coffee with me. I  got Coach Ken Carter (of the 2005 film  Coach Carter starring Samuel  Jackson) to meet with my staff  members and me. And when I was 23,  I persuaded Zig Ziglar to have lunch with me.
I did all these things because I believe  in getting exposure to big thinkers— people who can help me shape my future.
In one of my posts emails, I  suggested that if you are struggling  with debt or credit problems, you could  “change your physical environment so  that you are more likely to create the  psychological shift necessary to fulfill  your financial goals.”
I got several requests asking for more  information about how to do this if you  are deeply in debt, can’t get credit, or  are having to start over from scratch.
So I thought I’d pass along an idea that has worked for me …
Get physical exposure to people you admire.
If you start talking to other people who have been in your circumstances, and who are now living a life you admire, you will get at least a few ideas for changing your circumstances. Plus,
you will build a supportive network of people who are on your side … who want you to achieve your goal.
I know that financial problems can be embarrassing, and you might not want to reach out to people for help. But you can save yourself from years of pain if you decide to reach out to a few strategic (and trustworthy) people who will give you ideas for changing your finances and your future.
So whom should you get exposure to? Basically, you need to find people who have “been there, and done that”—people who have successfully moved past obstacles to find success and financial stability. This might be your sister-in-law, a local businessperson, or a good friend.
Or, you might want to reach even farther outside of your social circle, especially if you are deeply in debt, unemployed, or starting from scratch.
You could start looking for people who can pull you up, a few mentors or advisors who can help you make radical shifts in your situation.
That’s what I did when I got Zig Ziglar to have lunch with me. And that’s what I did when I brought Coach Carter into my office.
So how did I do it?
Well, you’ll have to wait for my next post, but I’ll give you a hint …
I used Seven Magic Words.
Until then, post a comment below and let me know your ideas for getting physical exposure to people who can help you change your circumstances.
– Philip Tirone

Back in 2001 at the non-profit organization Myvesta.org we held a contest and solicited the best cheap meals from people all cross the country. The resulting entries were combined into the Cheapmeals.com Cookbook.
You can download a free copy of this cookbook below.
The Cheap Meals Cookbook is divided into:

1. Appetizers
2. Soups & Salads
3. Entrees
4. Desserts
5. Kitchen Tips & Tricks

But first, here are some great tips for eating cheap meals.

Starting at Home:

1. Get a plan. If you’re always spending more for food than you expected to, then a plan is in order. It doesn’t have to be elaborate, just sit down with your family and come up with a dozen or so recipes that are tried and true. Write down the ingredients you’ll need and stock up well enough that you’ll have plenty on hand. The fact is most people eat basically the same dishes over and over again anyway.
2. Choose just one new dish a week to try. If the family really likes it, add it to your tried and true list.
3. Keep a pad of paper handy on the refrigerator so you can write down what you’ve run out of — it’ll probably save you more than a few trips to the store. (Don’t forget to take the list with you!) Those last minute trips for one or two items often result in a bag of groceries that break the budget.
4. Keep a running tally of what’s in the refrigerator or freezer. You can post this list on the fridge, too. Maybe now you won’t forget about the lasagna you froze last year!
5. Clip coupons but only for items you already buy. Then, if your local store offers double coupon days, time your visit accordingly. Kids can be great coupon clippers, especially if you offer to give them a share of any money you save.
6. One of the biggest reasons we’ve heard as to why people don’t use coupons is that they always seem to be for items that you never buy. Here’s what you do: Clip the coupons for the products you don’t buy, but are made by the same company as a product you do buy. As long as the first 4 digits on the coupon match the first 4 digits on the item’s UPC code, they are made by the same company and you’ll get the discount. So if there is a coupon for diapers, and you buy paper towels made by the same company, you can use the diaper coupon to get the savings on the paper towels. Some stores allow this use of coupons and some do not. Ask the store manager if this use of coupons is allowed at the store where you shop.

Shopping:

7. Stock up on staples so you’ll always have the basic ingredients for a recipe. If you have the room for storage, buy plenty when the price is right but make sure that they will store well.
8. Also, stock up on your favorite items when they go on sale. If your favorite apple juice normally costs $2.29 and you buy it on sale at $1.50, you’re guaranteed to save 34 percent, taxfree. Stock up and save!
9. Let younger kids pick out one item within a certain price range (say $2) when they shop with you. They’ll learn to compare prices and hopefully won’t bug you to buy everything they see that looks good.
10. Let older kids use their allowances to buy items that aren’t on your list. (But if you want to buy them treats from time to time when they’re on sale, that’s OK, too.)
11. Look high and look low. The more expensive items are usually right at your level of eyesite, says Mary Hunt, publisher of the Cheapskate Monthly (www.cheapskatemonthly.com). The less expensive ones are probably up high or down low on the shelves.
12. Buy cheaper generic or store brands of staples (flour, tomato paste, etc.) Keep in mind that store brands are generally made by the manufacturers of the big name ones — they just slap on a different label.
13. Stick to your list and only buy promotional items when the price is really right and you’d normally buy them anyway. Otherwise, you’ll end up with a case of artichoke hearts that you’ll never use.
14. Alternate where you shop based on what’s on sale. Hit the warehouse clubs from time to time to stock up on good deals.
15. Use unit pricing. These days, most stores display unit prices on the shelf labels (the price per pound or per ounce for example). It may be in tiny type, but it’s usually there. Use that to help you figure out what’s really the best deal.
16. Stay out of stores as much as possible. If you find yourself running to the store for more milk or bread, or because you’ve run out of something, then look at your master shopping list again to make sure you’re shopping for what you need.
17. Buy in season. It sounds obvious, but buying fruits and vegetables in season can be dramatically cheaper than buying out of season. The flavor is usually a lot better, too.
18. Create a price list with the prices of items you usually buy at the stores you frequent. That way, you’ll know which stores have the best deals on certain items. You’ll also know when a “sale” price is a bargain and when it’s not.
19. Bring only your budgeted amount of cash to the store and leave your credit cards, checkbook and ATM card at home. You’ll have no choice but to stay within your budget!

Cooking It Up:

20. When you make a meal, double the recipe if you can. Then save the rest for a meal later that week, or put it in the freezer. You’ll save time and money! You may even want to try making one month’s meals at once and freeze them. This method can save time and money. Get Month of Meals by Kelly Machel or Once a Month Cooking by Marilyn Wilson for details.
21. Join up with others and start a meal exchange. The idea is for four families to share cooking responsibilities. One family cooks a meal one night a week for everyone. Then the meals are either delivered that evening or exchanged at a convenient location once a week. Shopping can be a once-a-month group activity or divided among the group’s members.
22. Become a master at substituting. For example, Nancy Castleman, editor of The Pocket Change Investor newsletter (goodadvicepress.com), substitutes shelled sunflower seeds for expensive pine nuts in her pesto. It tastes delicious. A powdered egg substitute that can be used in place of eggs in most baking recipes is available at health food stores. Keep your eye out for other inexpensive ingredients that can work just as well as more expensive ones.
23. Ask family members to take turns cooking one night a week. You’ll get a break and they’re much more likely to eat what they cook! (You may be surprised, they may be very good at it.)
24. Have a “leftover” night on Friday or Saturday where you eat what was left from the week. Make it a family fun night with plenty of games and conversation and the kids will probably get into it.
25. Start a small herb garden in your window or on your patio. Herbs will be there when you need them and will be much less expensive than buying them fresh at the store (potted herbs also make wonderful, inexpensive hostess gifts).
26. Learn to cook. If your idea of making dinner is to pick up the phone, invest in a few cooking lessons or learn from a friend or relative. You may surprise yourself and your family!

Download the Free Cheap Meals Cookbook

Click on image above.

@GetOutOfDebtGuy
Author: This article was contributed by GetOutOfDebt.org, a site that provides free help and debt advice on how to get out of debt.
Source: Free Cheap Meals Recipes Cookbook

Okay, let me just preface this post by saying that I know the question I’m going to ask is a little over-the-top …
But I’m going to ask it anyway.
First, though … I wanted to pass along pics from my family vacation to the Bahamas. Several people left comments on my blog asking, so here they are:

(Just the six of us: Philip, Lily and baby-to-be, Dominic, Lucas, and Ava)

(Daddy and Ava, my oldest canoeing)

(Lucas, the trooper)

(Dominic, my middle child perfecting his swing)

Poor little two-year-old Lucas split open his lip while we were on the trip. Fortunately, we called the front desk, who had paramedics and a doctor on staff, so within about 90 minutes, he was all stitched up and ready to continue the vacation.
And it really was a “Heaven on Earth” type vacation… as you can see from the pictures!
Speaking of “Heaven on Earth,” my family has started asking a new question. We want to create the ideal life for ourselves and our children. So about once a week at dinnertime, we ask a question:
“If we were to create Heaven on Earth, what sort of things would we be doing?”
And then we try to do those things—vacations to tropical locations, dinner parties with great friends, etc. An added bonus of this question is this …
Lily and I learn all sorts of amazing stuff about our kids by asking this question. We find out what they are interested in. If they have fears, we find out about those too because they tell us what Heaven on Earth doesn’t look like.
Of course, I’m a Catholic boy, so the “Heaven on Earth” concept might be a little over-the-top for your tastes.
But how about asking yourself and/or your family this question …
“If we were to be living the ideal life, what sort of things would we be doing?”
By asking this question, you might identify a lot of things that don’t feed into your vision of the ideal life. And this is great information to find out because then you can make a plan to change your situation.
But you have to identify your ideal situation first!
So what does that ideal life (or Heaven on Earth) look like? Feel free to share your answers below.
– Philip Tirone

Sometimes, people wonder whether I really read all the comments on my blog.
I do …
… even when I just got back from a nine-day vacation with my wife and kids.
You see, I just got back from the Bahamas. Technically, I’m “out of the office” until Monday, so my beautiful wife, Lily Tirone, is going to shoot me if I spend too much time writing this. But just to prove to you that I do read every single comment, I wanted to respond really quickly to one of them from last week’s email and blog…
One of my readers asked why I didn’t take a simpler vacation with all the kids instead of buying all those plane tickets and hauling my brood through security. True, we could have driven just 20 minutes and had a nice family vacation. I could have saved the money on airfare and taken my wife to the Bahamas another time.
But here’s the thing…
If I took the kids on a trip down the road, I would have ended up working a ton more than I worked. It wouldn’t have been enough of a change in scenery to cause me to make the psychological shift necessary to focus 100 percent on my family.
Because I was a very long way away from home, I felt separated from all the distractions. In fact, I didn’t checked in with my staff while I was in the Bahamas. Lily, the kids, and I enjoyed our time together, and I made sure that my time was protected so that I could spend it with the people who matter most.
I’ve found that in reaching a goal, it is critical to create an environment that allows a psychological shift to occur. This is true with the delicate balancing act of family and work. It’s also true when it comes to getting your finances in order.
If you are struggling with debt, credit, or other financial problems, ask yourself how you can change your physical environment so that you are more likely to create the psychological shift necessary to fulfill your financial goals.
Maybe that means logging your purchases and reviewing your budget monthly. Maybe it means dedicating 10 minutes a day to reading books about financial management. Maybe it means joining Debtors Anonymous.
And be sure to share your ideas below! I promise to read them all!

Would I rather be glad I bought the latest iPhone, or be glad I saved money for a vacation so that I can relax with my amazing wife Lily Tirone?

That’s the question I posed last week, when I suggested that you ask yourself a simple question before making a spending decision …
At the end of my life, would I rather have this or that? (If you missed this post, you can read it here.)
This is Part 2 … a follow up on last week’s post. I wrote it on Tuesday because a lot of people pointed something out …
This question can be applied more broadly and expanded beyond the topic of finances. It can be asked to guide the choices we make and determine whether these choices are in line with our life values.
This week, something came up that hit home for me …
My wife (Lily Tirone) and I are taking our kids to the Bahamas.
I want you to have a little taste of what my family looks like, so I’ve posted a picture below. My oldest, Ava, is five. Dominic is almost four, and Luke is about two and a half.

At any rate, this is a really special vacation because it is probably the last time the Tirone family will take a vacation together … just the five of us.
See, Lily is about three months pregnant, so in six months, Baby #4 will be here, and the Tirones will be a family of six!
Now, if you are a parent, you can probably imagine what it’s like getting the Tirone family through the airport. Lily and I have three car seats, a triple stroller, bags of baby gear, books for the kids to read, toys … the list goes on and on.
Lily and I basically look like pack mules, and no one ever wants to be behind us in the security line. Frankly, it’s kind of a nightmare.
It’s really tough traveling with three young kids, and both Lily and I have had thoughts of not going … it would be a lot more convenient to just stay home.
But if we stayed home, I’d inevitably end up working. I know I would. In the Bahamas, I’ll turn off my cell phone. I won’t check my email. I’ll tell my staff to call the hotel room only if someone is bleeding.
The Tirone family of five will be able to spend some really special quality together-time.
And at the end of my life, I’m going to say, “I’m sure glad I spent that time with my kids and with Lily. I’m glad Lily and I hauled my unruly young kids through security line and suffered the headaches.”
If we decided to skip the vacation, I’m positive that I would never look back and say, “Boy, I sure wish I hadn’t gone on vacation with my family and had stayed home and worked instead.”
Every single time we take a vacation together, our family grows closer and closer.
In fact, when I come back, I’ll tell you what I learned on this trip!
For now, I just want to encourage you to remember to make choices — financial or otherwise — that reflect what you want long-term. These choices might be inconvenient in the short-term, but if they honor your life values, you won’t look back and regret them!
If you have any thoughts about this, or if you want to share your stories, be sure to post a comment below!
– Philip Tirone

I want to ask you a question that could solve your financial, credit, and debt problems …
But first, a quick story …
One of my friends, Jocelyn, told me that she was in tears for two days.
A mom with Baby #2 on the way, Jocelyn had decided to let go of her nanny …
She told me she felt a little silly crying about it … compared to some people’s problems, letting go of the nanny is hardly a big problem.
But it was a big lifestyle-decision for Jocelyn and her family. You see, the nanny has cared for their daughter since she was four months old. And with Baby #2 on the way, Jocelyn’s family is going to need a nanny again in about four months.
But her daughter just started preschool, and her son isn’t due for about two more months. Once her son is born, Jocelyn won’t be working much during the first few months.
She figured she could save a boatload of money by letting go of the nanny…
But the decision made Jocelyn sob. She was going to have to hire another nanny once she went back to work.
Jocelyn couldn’t image leaving her new child alone with a stranger. The thought made her sick to her stomach.
Then Jocelyn’s sister said something smart:
“I don’t think this is an area where you should be frugal. If you want to save money, sell one of your cars. Think about it … at the end of your life, would you rather look back and say: I’m sure glad we had two cars? Or would you rather say: I’m sure glad we made sacrifices so that we could surround our children with people who love them?”

Jocelyn thought about it and realized she could make a ton of sacrifices elsewhere. She and her husband could plan their meals a little better and save about $200 a month in groceries. They figured a way to lower the amount they paid for car insurance. And they made a deal with the nanny that made financial sense for everyone involved.
They made it work.
So what does this have to do with credit?
A lot of credit problems are actually spending problems. People make rash, spur-of-the-moment choices that don’t reflect their truest desires. They buy the latest iPhone instead of paying a credit card bill. They buy a new pair of shoes instead of saving money for a vacation.
If you think you are someone who makes bad decisions when it comes to spending money, ask yourself the same question Jocelyn asked: “At the end of my life, would I rather have this or that?”
Ask this question before making any purchase or budgetary decision:
At the end of your life, would you rather look back and say: I’m sure glad I had the latest iPhone? Or would you rather say: I’m sure glad I pinched pennies and saved money so that I could take care of my debt problems, invest in my child’s future, and take relaxing vacations with my family?

Spending money is almost always a choice between one opportunity and another. Just make sure you are taking advantage of the right opportunity and putting your money where it matters!
Please share your thoughts with me below!!
– Philip Tirone

David Vladeck director of the FTC’s Bureau of Consumer Protection and DOJ Assistant Attorney Tony West today conducted a conference call I attended to provide additional information regarding an announced settlement with collection company Asset Acceptance. In the settlement Asset Acceptance agreed to pay the second largest fine ever against a collection company for alleged violations.
Asset Acceptance is one of the larger debt buyers. They purchase and collect old debt that had been previously placed with other entities but problems with accuracy and data create a situation where the data is less reliable, yet it was being used. As a debt is passed from one entity to another the quality of records deteriorates when people with similar names and address are involved. Erroneously people may be contacted about debts that never belonged to them at all. And that’s a problem.
In some states the applicable statute of limitations will prevent suits on this old debt but in others a partial payment or an agreement to repay will restart the clock on the ability for a debt collector or debt owner to sue. Debt buyers and debt collectors sometimes are not clear about this and can trick the consumer into reviving an old debt by agreeing the debt is theirs or making a partial payment.
The FTC and DOJ alleged Asset Acceptance had little or no evidence to support validation of some debts they were attempting to collect on and that Asset Acceptance did not take reasonable steps to validate. They stated Asset Acceptance continued collection efforts anyway. And reported to credit reporting agencies.
The action against Asset Acceptance creates a framework of what is acceptable.

1. Time Barred Debt / Statute of Limitation Debt: If a collector calls demanding payment Asset has agreed to disclose to consumers that it is time barred and cannot be collected via a lawsuit.
2. Partial Payments Reviving Debts: Many debt buyers accept partial payments to reset clock without informing consumers this will happen. Asset has waived it’s right to partial payment revival of stale debt.
3. Collection agencies park debt on credit reports to force consumers to pay off the debt to get rid of it even if it is not accurate. The thought was that a consumer applying for a loan or new credit and who discovered an old collection debt might just pay it off. Asset Acceptance has agreed to give consumers notice when it reports to credit reporting agencies.
4. Reliability of Information. If a collector or knows or should know the information is not accurate and the consumer has provided reliable information proving the information is not accurate, the collector must take reasonable steps to confirm the accuracy of the information before collection efforts. What those reasonable steps are was not made clear.

Department of Justice Assistant Attorney General Tony West said, “Going forward we have a framework for the entire debt collection industry to follow.” This should be a message to debt collection industry that they will be held accountable, “if they don’t act fairly and responsibly.”
The FTC complaint against Asset Acceptance alleged Asset was:

1. misrepresenting that consumers owed a debt when it could not substantiate its representations;
2. failing to disclose that debts are too old to be legally enforceable or that a partial payment would extend the time a debt could be legally enforceable;
3. providing information to credit reporting agencies, while knowing or having reasonable cause to believe that the information was inaccurate;
4. failing to notify consumers in writing that it provided negative information to a credit reporting agency;
5. failing to conduct a reasonable investigation when it received a notice of dispute from a credit reporting agency;
6. repeatedly calling third parties who do not owe a debt;
7. informing third parties about a debt;
8. sing illegal debt-collection practices, including misrepresenting the character, amount, or legal status of a debt; providing inaccurate information to credit reporting agencies; and making false representations to collect a debt; and
9. failing to provide verification of the debt and continuing to attempt to collect a debt when it is disputed by the consumer.

@GetOutOfDebtGuy
Author: This article was contributed by GetOutOfDebt.org, a site that provides free debt consolidation help and debt relief advice for people looking for answers.
Source: FTC and DOJ Announce Asset Acceptance Settlement Which They Want to Be Framework for Debt Collection Industry

I had something interesting happen to me this week …
I was listening to my sister talking about how anxious she feels. I was nodding, sympathetic, and at one point, I said, “Yes, I know that feeling.”
She looked surprised and said, “You feel anxious sometimes?” She assumed that I don’t feel anxious simply because I’m in a different place financially.
We started talking, and she asked me a series of questions:
“Do you feel stressed sometimes?”
“Of course,” I told her.
“Do you feel pressure?”
“Of course,” I said again.
Our conversation went on for a while. The point I wanted to make is simple …
Negative feelings and anxiety are normal. The secret lies in how you react to these situations. Here is the formula I use …
3 Questions to Ask When Having Negative Feelings

1) Why do I feel this way?
Instead of reacting immediately, identify why you are having negative emotions.
2) Do these feelings make logical sense?
I’ve found that oftentimes, my emotions are saying one thing, but my intellectual mind is saying another thing. When I think about the situation, I’m able to pinpoint the “hot buttons” that were triggered, but they don’t make logical sense. Many times, simply making this identification helps me move past these feelings. If not, I ask question #3.
3) Can I “be” with these feelings for the next few hours?
The answer, of course, is yes. I can live with negative feelings for a few hours, even a few days. By not trying to suppress the feelings, I can get over them much faster. And by allowing myself to “be” with them for a while, I resist the temptation to take immediate action, which might be inappropriate and reactionary.
What do you think?  Comment below to tell me how you deal with negative emotions.
– Philip Tirone