Liz Pleasant<\/strong><\/p>\n Last month PM Press\u00a0published<\/a>\u00a0the\u00a0Debt Resisters’ Operations Manual<\/i>\u00a0\u2013also known as \u201cthe DROM.\u201d But don\u2019t let that menacing-sounding acronym fool you: this is a book written in plain English and filled with tips and tactics for dealing with debt.<\/p>\n The book has been available online since September 2012, but this publishing marks the first time the manual has been printed, bound, and sold. Don’t worry, you can still find a\u00a0free copy online<\/a>. But, hopefully, getting this book into stores will help its message reach more people\u2013however ironic it might seem to buy one with a credit card.<\/p>\n “Everyone is a debtor so there\u2019s no limit to the audience” said Andrew Ross, a member of the Occupy Wall Street offshoot called Strike Debt, in aninterview<\/a>with\u00a0Guernica Magazine<\/a>. Although Ross has gone public, most of the authors of the\u00a0Debt Resister’s Operations Manual\u00a0<\/i>have chosen to remain anonymous.<\/p>\n The book explains how creditors, big banks, and other lenders operate and how debtors can navigate both in and outside of the system.<\/p>\n “From a young age, we are conditioned to feel that being in debt is shameful and worthy of punishment,” the manual’s anonymous authors explain.<\/p>\n Debtors shouldn\u2019t feel that way, the DROM\u00a0<\/i>argues, because the situation is largely unfair and out of their control. “The reason you have tens of thousands of dollars in medical bills is that we don’t provide medical care to everyone,” the authors write. “The reason you have tens of thousands of dollars of student loans is because the government, banks, and university administrators [are] \u2026 driving college costs through the roof.”<\/p>\n All that debt adds up. About 75 percent of Americans are in debt right now and owe a total of more than $11.5 trillion,\u00a0according to\u00a0Forbes<\/i>\u00a0magazine<\/a>. That’s about three times the amount of spending the Obama Administration requested in its 2015 federal budget.<\/p>\n And it\u2019s not necessarily spent on expensive handbags, sports cars, and vacations. A\u00a02012 study<\/a>\u00a0published by the left-leaning thinktank\u00a0Demos<\/a>\u00a0found that 40 percent of American households in debt use their credit cards to pay for living costs like rent, food, and utility bills. Additionally, about half of household debt comes from medical bills.<\/p>\n While the authors clearly worked hard to make the manual\u2019s language accessible, that doesn’t mean it’s a quick read. If you lack time or patience to sit down and wrap your head around how FICO credit scores are generated, here are five tips from the DROM that you can start using today.<\/p>\n Stay away from paycheck loans, pawnshops, prepaid cards, nonbank check cashing, and rent-to-own agreements. These alternative financial services\u2013known in the industry as AFSs\u2013may appeal to those who don’t want or can’t have a checking account, but these institutions often prey on their customers through hidden fees and high interest rates.<\/p>\n The scale of the problem is huge: According to a\u00a0survey<\/a>\u00a0conducted by the U.S. Census Bureau in 2009, about 9 million American adults have no bank account, and 66 percent of these unbanked Americans say they use alternative financial services.<\/p>\n And just how bad are those services? According to Gary Rivlin, author of\u00a0Broke USA: From Pawnshops to Poverty, Inc<\/i>., the average family with an annual income of $30,000 or less pays $2,500 in fees and interests to the AFS industry every year.<\/p>\n If you need money in a pinch, consider more community-based short-term loans. Ask a friend or a family member, or check to see if your employer can extend an advance. Credit unions often offer short-term loans at better rates than companies in the AFS sector. Another option is selling your unwanted stuff (either online or at thrift stores) to make some quick cash.<\/p>\n If you’re part of the\u00a075 percent<\/a>\u00a0of working Americans who say they live \u201cpaycheck-to-paycheck\u201d (defined as not having enough in savings to cover six months of expenses), then it\u2019s not an option to pay past-due credit card, medical, or student debt with savings. But there may be an appealing alternative to the racking up endless interest and fees: Tell whomever you owe that you can’t afford to pay in full\u2013and then make them an offer.<\/p>\n “Remember,” the DROM says, “even if we offer them ten cents on the dollar, that’s more than they would be getting if they sold [the debt] to a collection agency.”<\/p>\n This process of renegotiating debt is called debt settlement, and can begin with something as simple as a frank phone call with your credit card company. Be aware that there are many scams out there in this sector, according to the DROM, so it\u2019s a good idea to avoid companies or lawyers who claim to be able to achieve a debt settlement for you. Instead, consider applying for a debt settlement yourself.<\/p>\n The same process can be transferred to medical debt, and even the IRS has a program that can cut down your tax debt based on your income. It\u2019ll cost you $150 to\u00a0apply<\/a>, but if you owe a lot the risk might be worth it. Additional information on how to pursue your own debt settlement can be found\u00a0here<\/a>.<\/p>\n The\u00a0Fair Debt Collections Practices Act\u00a0<\/a>, passed in 1977, includes a long\u00a0list of rules<\/a>\u00a0that collection agents must follow. Examples of illegal behaviors include using a fake company name, lying when trying to collect debt, or saying that you will be arrested if you don’t pay your debt. The act also lets you put an end to insistent phone calls from \u201cunknown numbers\u201d by making a formal request that collectors contact you only during certain hours. Calling outside of the requested time is a violation of the FDCPA.<\/p>\n Review all the rules listed in the act so you’ll be able to recognize any mishandling of your account. Keep copies of all correspondence between you and any credit collection agencies. If collectors break these rules and you decide to report it, you must take action within one year of the violation. You can report violations to multiple places, including: your state\u2019s\u00a0Attorney General’s office<\/a>, the\u00a0Federal Trade Commission<\/a>, and theConsumer Financial Protection Bureau<\/a>. The collection agency can be fined if it\u2019s found to have violated regulations, but it won\u2019t change how much you owe.<\/p>\n If you want to try to get your debt reduced or erased, you’ll have to sue the collection agency. But Rozie Hughes, a financial advisor who helped develop the\u00a0Financial Integrity Instructors Guide<\/a>, said that complaints to the FDCPA are unlikely to reduce debts. “The road to such an end would actually be \u2026 lengthy and laborious through the civil court system.”<\/p>\n If you feel you have a strong case against a collector, and the time and resources for a lawsuit, reducing your debt in a courtroom is a possibility. On the other hand, simply reporting violations is an action every debtor can take to put an end to intimidation and hold collectors accountable for misconduct.<\/p>\n Credit checks are one way that debt can affect more than just your bank account. Landlords regularly use poor credit score ratings to deny rental applications, and employers are increasingly using credit checks to screen potential employees as well.<\/p>\n If your credit score is a problem, offer to bring in a personal portfolio instead. Include references from current landlords and employers, as well as bank statements and paycheck stubs. Putting in the effort to create a portfolio can show you are a responsible and trustworthy person and may prove to be more important than a number on a credit report.<\/p>\n Some of the things the DROM suggests you do to survive with little to no money are pretty radical. These include wearing only free clothes, getting food from shelters, and squatting in abandoned buildings.<\/p>\n But if those options are too hard-core for you, don’t worry. There are some other options too. The DROM suggests you look into bartering networks and gift economies in your area. These alternatives are great because they allow you to trade your extra items, time, or skills for things you need without the exchange of cash. Large-scale examples of this include websites like\u00a0Swap Right<\/a>,\u00a0Trash Bank<\/a>, and the \u201cfree\u201d section of your local Craigslist.<\/p>\n And when you need services rather than objects, consider\u00a0joining your local time bank<\/a>\u2013a service that allows you to trade your own time for a carpenter\u2019s, plumber\u2019s, or whoever\u2019s time you need.<\/p>\n It’s important to acknowledge the cultural change that\u2019s involved in moving away from the cash economy and toward swapping, bartering, and other alternatives.<\/p>\n “Finding ways to live outside of [our current debt cycle] is an absolute necessity for many, but can also be rewarding and give you a glimpse of what life might be like in a world without debt,” the authors of the DROM explain. “It will require cultivating personal values and taking actions that often stand in stark contrast to the ones our consumers culture promotes so aggressively.”<\/p>\n Liz Pleasant is a graduate of the University of Washington’s program in Anthropology, and an online editorial intern at YES! Follow her on Twitter<\/span>@lizpleasant<\/a>.<\/span><\/p>\n1.\u00a0Avoid payday loan services and other “fringe” finance.<\/strong><\/h3>\n
2.\u00a0Make them an offer.<\/strong><\/h3>\n
3.\u00a0Know your rights and be prepared to defend them.<\/strong><\/h3>\n
4.\u00a0Consider alternatives to a credit check.<\/strong><\/h3>\n
5.\u00a0Shift your values.<\/strong><\/h3>\n