Do you feel like you are literally being drowned in a sea of unpaid bills? Glub, glub… it’s no fun, is it?

Many financial experts will tell all of us the same thing…make more, spend less. That’s breaking news isn’t it? But what if your income is capped, and you have already cut every corner there is to cut? Then what?

What I’m about to say now – goes against the tide of the times. I say spend some, make lots, and buy down. What the heck does that mean? As anyone who has truly made any REAL money will tell you, they made their money not working for someone else – but for themselves – hence the have to “spend some” to get yourself started in something. Now, Don’t quit on me here…

I’m not telling you to quit your job, well not yet anyway. I’m telling you to start something on the side and use your “side income” to start paying down your bills.

Don’t start with the bill with the biggest interest as most financial guru’s advise. Start with the bill that makes you put out the largest amount of cash each and every month and pay bare minimums to all other bills. Once the biggest bill is paid off, take the amount you would have been spending and apply that amount to the next one that now has the highest amount of outgoing cash and pay it down and off.

And so on and so on. If you will consistently keep rolling the amounts of your paid off debts into the remaining live debts, you will be out of debt before you know it. O.K., now you’ve got some breathing room. Kill your bills, don’t let them kill you – go ahead, be a Bill Killer.

Now you’ve reached a point where you have a choice – keep your second “side income work” going and have a little extra every month to make your life easier or, once you feel like the weight of the world has been lifted because you are no longer under that stressful, strangling, financial burden anymore – ramp up your side income until it becomes your main income. Then who knows, maybe quit your job? Vacation when you want? Eat out at nice places when you want? Buy your spouse nice things because they would like it and not because it’s something they need?

Does any of this make sense? Remember, you may be a the lowest point in your life – but you do have a choice. If you choose NOT to do anything at all – that is still a choice. But if you walk down that path, you have just forfeited your right to complain. Take a PRO active stance, not a RE-active one. Now, go kill your bills.

So how do you stop them? This article show you a powerful action you can take as a consumer.

Your rights as a consumer

The Fair Debt Collection Practices Act (FDCPA) is the law that governs third party collection of debt. You as a consumer reserves the right to notify a debt collector to cease further communication and the debt collector must comply with your request under Section 805 of the FDCPA. After receiving your request in writing, the debt collector can only communicate with you if they are no longer handling the account or to notify their intention to file a lawsuit.

Using a Cease and Desist Letter

One of those rights is sending a cease and desist letter to stop the harassing phone calls and threatening letters. There are two types of cease and desist letters: a full and a partial or limited cease and desist. The full cease and desist letter instruct the debt collector to stop any communication. A partial cease and desist asks the collector to keep all their communication in writing as phone calls are deemed as inconvenient for you.

Which cease and desist letter do you send?

There are a few important aspects you need to consider before you start taking action. First you must know details about your outstanding debt. You need to find out if your debt is inside or outside the statute of limitations for your state. This simply means that the debt collector has the right to sue you if you do not pay up.

Full cease and desist letter

If your debt is outside the statute of limitations for your state, you may send a full cease and desist letter. Although the debt collector can still sue you, you have what is called an affirmative defense due to the debt being outside the statute of limitations and debt collection is therefore time barred.

Limited or Partial cease and desist letter

If your debt is inside the statute of limitations for your state, it is best to send a limited cease and desist. This will let the debt collector send all their communication in writing and you can focus on working towards resolving or settling your debt. You can check with your state’s District Attorney’s office or website to find more information about the time limitations that apply to your debt.

This is only a starting point. Your state’s website has tons of information about debt collectors and your rights when dealing with them. Be sure to check and verified with your state’s District Attorney’s office. Now you are empowered with the knowledge, you don’t have to live in fear of collection letters and harassing phone calls ever again.

Many of us have trouble keeping track of our outstanding debt payments. I have often lost track of the payments to be made. That’s why I created a spreadsheet that will keep track of my outstanding loan. You can download the debt reduction calculator free of charge