Are Zombie Debts Stalking You?

(Photo credit: Images_of_Money)Collecting old debts - even debts for which you are not legally responsible - is becoming a very profitable venture. Companies can buy those debts (sometimes referred to as "zombie debt") for pennies to the dollar, then go after the people who they think are most likely to pay up. A phone call can turn into badgering, harassment, threats to sue, and other inappropriate (and sometimes illegal) actions. If you ever get a collector asking you to pay up on a debt that's "come back to life", here's how to make sure your rights aren't violated.

1. Do not acknowledge the debt. If you're not sure whether you actually owe the debt, don't say anything that could indicate that the debt is yours, and certainly do not agree to make any kind of payment. Doing this can give the company the legal right to collect the debt, which they might not have had if you didn't acknowledge the debt.

2. Don't fall for any traps.

• illegally "re-aging" debts (reporting the old debt to the credit bureaus as if it's new)
• promising to wipe off a red checkmark on a credit report
• bait-and-switch credit card offers (they tack on the balance of the zombie debt)

3. Get it in writing. Ask for proof that you owe the debt, like the credit card agreement you originally signed, along with an account history. If they don't have that proof then they don't have the right to take action against you. Again, make sure you don't acknowledge the debt. Keep repeating: "I want to see evidence of this debt in writing. I do not acknowledge this debt."

4. Check the statute of limitations to make sure you're not responsible for the debt anymore. The statute of limitations essentially defines how much time you can go without paying a debt before a collector's right to collect through the court system expires. Every state in the US has different rules and exceptions regarding when the time period officially begins, how long it lasts, and what can "revive" the statutory period, so you really do need to check the laws or consult an attorney in your own state. Until you can do that, however, keep the following in mind:

• Even if the statute of limitation expired, agencies can still try to collect the debt; they just can't do it through the court system. (If your debt was discharged through bankruptcy, they can't attempt to collect it at all.)
• Moving to a different state, even temporarily, can affect the length of your statutory period.
• Do not allow the collector to convince you to make a payment to "show your good intentions" (such as if you're on your way to court). This can "reset" the statutory period and essentially bring the debt back from the dead.
• If the statute of limitations has expired, and you don't meet the criteria in your state for extending it, send a letter to the collectors stating those facts.

5. Write a letter explaining that you are not responsible for the debt, you do NOT acknowledge it, and you demand they stop harassing you or you will take legal action. If you've done your homework and you know that you are not responsible for the debt (such as if your statute of limitations expired and you don't meet the criteria in your state for extending it, or you declared bankruptcy), send them a letter through certified mail and get a return receipt. If you've filed for bankruptcy, send them your discharge order with your letter. If they insist on taking you to court, be prepared to tell the judge that you notified the collector in writing that the statute had expired.

6. Watch your credit report carefully. They might try to report the debt or taint your credit history. As mentioned earlier, collectors could post an old debt as if it's new, or lie about the date of delinquency (in an attempt to start a new statutory period). Dispute any questionable entries with the credit bureau and the agency. Again, asking for proof of the debt as advised earlier can make their claims invalid.

Some articles concerning debt:

• Seniors in Debt: Debt Consolidation for Older Adults
• What You Don’t Know About Debt Will Cost You
• Five Ways to Pay Down Your Debt Before Retirement

10 Money Conversations Most Families Never Have

. (Photo credit: BrethrenBenefitTrust)The conversations between adult children and their parents concerning money and financial subjects rarely happen. Even thought these conversations are difficult to have they are a necessary part of an estate transition. 

Sadly, these necessary conversations usually are forced to take place when the elder parents are to sick or impaired mentally.
It's important that this has to change and open conversations need to take place when all parties are in good health.

According to a report by the Alzheimer's Association, 5.2 million -- or 1 in 8 Americans -- over the age of 65 have Alzheimer's disease. The same report also cites a study which estimates 13.9% of Americans over age 71 suffer from some form of dementia. If you suddenly had to take over a parents financial affairs would you know where to start.

For the good of all the family you should start as soon as possible to get organized. It will be a benefit to yourself and your parents.

1. Have they named a durable power of attorney to manage their finances?
The first step is to find out if they have named a Durable Power of Attorney (POA). Without a POA in place, you'll have to go to court to get guardianship of your parent in order to access accounts on their behalf.

2. Where do they keep their financial records?
Whether they keep their money and documents in a bank, a safe, or under the mattress, you need to know where to find records when you need them. What is the location of keys or codes to lock boxes or safes?

3. What are their bank account numbers and names of their financial institutions?
In addition to knowing where they keep their money, you need specifics on all account numbers. What banks do they use? Who is their mortgage company? Do they have an investment firm?

4. What are your parent's monthly expenses?
Gather information on their mortgage, car payment, credit card debt, electric bill and other expenses.

5. How do they pay their bills currently?
If there are automatic deductions being taken out of a checking account, you need to know about it. Do they use online banking, or only paper checks?

6. How much is their annual income and where does it come from?
Does your parent receive a monthly pension check? Do they have dividends coming in from investments? Do they get money for a disability, or alimony?

7. Do they receive Medicare, Medicaid, or Social Security?
If your parent becomes incapacitated, you may have to investigate the status and eligibility of government assistance.

8. What kind of medical health insurance do they have in addition to Medicare?
Do they have health insurance provided by an employer? If they are retired, are health benefits included as part of a pension?

9. Do they have long-term care insurance?
A "regular" health insurance plan does not cover the cost of assisted living or a nursing home. Did they purchase a long-term care insurance policy to cover the cost of those residences? If not, and they can no longer live on their own, what can they afford in terms of housing?

10. Do they have an accountant or financial planner?
Who is it and how do you contact them? Have they done any estate planning?

These and many other questions need to be answered before a situation becomes to difficult. Even if many of these things can not be revealed presently, a file or drawer where all of this type of information can be found quickly is a necessity.

The Advantages of Trading Indices

(Photo credit: Wikipedia)

Stock market indices are a major component of our daily financial news. Indices have to be understood in their proper context for anyone who hopes to invest using the information on any given index. Stock market indices are used to measure or track a market by its performance and this will give a fair indication as to its ups and downs.

Indices are financial products that are constructed from the constituents of a particular global exchange, such as the UK 100 or US 30. Trading indices are widely used by financial professionals as well as individual investors, for portfolio protection.

Some of the advantages of trading indices are:

24 Hour Market.

While the international stock markets operate during regular trading hours most of the major indices are open for trading 24 hours a day. When the UK or US stock market closes at 4:30pm, you can find the UK 100, US 30, or the Germany 30 index will continue trading all through the night. Unlike many other financial markets, investors can watch index fluctuations caused by economic, political, or social events and be able to respond immediately. They do not have to wait to markets to open in the morning. The electronic platform provides a level playing field. 

Liquidity

The major global indices are the most heavily traded asset type in the world. It has a large daily turnover with many traders all over the world. Volume and open interest in the stock indices continue to grow - a clear indication of the growing liquidity and strength of these contracts.

Leverage

Indices are traded on margin, typically 1%, which is quite often referred to as 100:1 leverage. With some companies it can be even less. If you trade on margin you are using your money more efficiently. You only have to allocate a small portion of your position to trade. More leverage provides greater exposure to price changes and allows you to take larger positions.

Independently Operating

Major indices are so large and heavily traded that they are beyond the financial control of any individual participant. Even government economic controls can not influence it.

Investing in indices is of course much easier and cheaper than investing in every stock in the index itself. Of course investing in an index doesn’t guarantee that you will make money but historically returns on indices have been in the region of 10-11%. Trade indices with CMC, it just takes a little patience over the long term to see a return on your capital.

Forex Trading: Regulation Differences between Germany & UK

The act of trading FOREX (or Devisen in Germany) has exploded in recent years due to faster connection speeds, better technology, ECN's and market makers that pretty much provide anybody with a computer a link to the global financial market.

Thanks to the Electronic Communication Network (ECN) you can live in any country you want and still enjoy the tax or investment benefits of another country. Something to consider, to maximize profits, is paying the lowest amount on your taxes.

Each country has its own set of confusing tax laws, making it even more important to get expert tax help. 

Take for example in the U.K., when paying taxes on capital gains, if you make over a certain amount you are bumped up to the 50% tax rate. Because of this many U.K. residents consider giving up their residence status, to avoid the excessive taxation. Germany has an equivalent rate but it kicks in at a much higher income.

How a country's taxation laws treats Forex earnings, determines your overall success. All countries treat profits as capital gains. They can be long term gains held at least a year or short term gains which are held less than year.

You usually pay less taxes on assets held at least a year but traders don't usually hold their investments that long. The are usually taxed at the short term rate because of all the trading.

A strategy some Forex traders use is trading in a country they do not reside in. If you lived in Germany and traded in the U.K., what would be the tax implications? In Germany it doesn't matter if you trade in country or out of country. When tax time comes your will have to pay your German taxes. 

But if you traded in the U.K. it would be possible to set up off shore accounts and avoid the normal taxes owed. But when you eventually brought the income home, the taxes would have to be paid.

"The UK is a tax haven for people of foreign domicile, even if they are UK resident (residence and domicile being separate legal concepts in the UK), in that they pay no tax on foreign income so long as it is not remitted to the UK."Tax haven - Wikipedia, the free encyclopedia

If you make a living on your trading, it makes sense to have your tax treatment to be the most positive. Many countries have conflicting tax laws and rules for non-residents. These countries offer different levels of financial incentives to attract new business. It would be beneficial to seek out professional tax help to be sure you're maximizing your income.


Forex is one the least known and appreciated forms of earning money. Trading in the foreign currency exchange market can be a profitable and exciting endeavor.