May a debt collector contact anyone else about your debt?

If you have an attorney, the debt collector must contact the attorney, rather than you. If you do not have an attorney, a collector may contact other people, but only to find out where you live, what your phone number is, and where you work. Collectors usually are prohibited from contacting such third parties more than once. In most cases, the collector may not tell anyone other than you and your attorney that you owe money.

Developing a Budget

The first step toward taking control of your financial situation is to do a realistic assessment of how much money you take in and how much money you spend. Start by listing your income from all sources. Then, list your “fixed” expenses — those that are the same each month — like mortgage payments or rent, car payments, and insurance premiums. Next, list the expenses that vary — like entertainment, recreation, and clothing. Writing down all your expenses, even those that seem insignificant, is a helpful way to track your spending patterns, identify necessary expenses, and prioritize the rest. The goal is to make sure you can make ends meet on the basics: housing, food, health care, insurance, and education.

Your public library and bookstores have information about budgeting and money management techniques. In addition, computer software programs can be useful tools for developing and maintaining a budget, balancing your checkbook, and creating plans to save money and pay down your debt.

Organize and protect your important documents

Make sure your bank and brokerage statements, insurance policies, Social Security and company pension records, and other personal and financial papers are in a safe place and easy to get to.

As the victims of recent hurricanes, floods and other disasters have learned, it's wise to take extra precautions with essential records. For the most important original documents, such as wills, passports and birth certificates, seal them in airtight and waterproof containers to prevent water damage. Make backup copies and consider giving duplicates to loved ones —or at least let them know where to find your records in an emergency.

Consider renting a safe deposit box at your bank for certain papers that could be difficult or impossible to replace, such as birth certificates and originals of important contracts. Don't put into a safe deposit box anything you might need in an emergency, such as your passport or medical-care directives, in case your bank is closed for the night or weekend. Also, many experts generally advise against putting a will in a safe deposit box because, in many states, there may be complications accessing the will after the person dies. And remember that copies of wills aren't valid. Perhaps the best approach is to ask your attorney for guidance.

For the most important papers you keep at home, consider an inexpensive but durable home safe.

Fake Documents Used to "Steal" Homes

Criminals are filing fake deeds to gain control of homes, often those belonging to the elderly, according to recent reports. A con artist can attempt to "steal" a house by falsely claiming to be the owner of a property or the owner's adult child who has the authority to conduct business for the family.

The perpetrator typically targets nice homes that are vacant for a long time, perhaps because the owner is away for the winter or is receiving extended medical treatment. The thief then goes to the courthouse and files a fraudulent deed that, in legitimate circumstances, can be a simple way to transfer the ownership of property from one person to another. After the courthouse records show the criminal as having the deed to the property, he will attempt to sell it and take off with the cash.

"Because the house is not being lived in, this fraud can go undetected for quite a while," said David Nelson, a fraud specialist in the FDIC's Financial Crimes Section. To protect yourself, he suggested "making sure the house looks lived-in while you are away," such as by arranging for mail and newspapers to be picked up or forwarded.