Free Credit Counseling

Watch For Cash For Clunker Program!

In the interest of passing along any information that my readers will find helpful. Here's a piece of news regarding the cash for clunkers program.

If you are in the market for a new car, then you need to start looking for ads by dealers who will start advertising this program. Basically, you may be able to qualify for a voucher valued at either 3500. or 4500 dollars to be used as a down payment on a new car. The qualifiers are listed in the following article:CASH FOR CLUNKERS.

Please feel free to share this article since this program will only be good until November of 2009.

As always, if you would like to subscribe to our FREE credit counseling newsletter, simply visit: AMERICAN DEBT ENDERS.

If you need debt relief help, remember, we offer 3 programs, and none of them include bankruptcy. They are debt settlement, debt management and "alternative debt relief.

Written By:
Steven Ciantro
Member National Association of Certified Credit Counselors
American Debt Enders
help@americandebtenders.com
877-766-2465

Debt Settlement vs. Credit Counseling, The Facts.

The following, regarding the differences between Credit Counseling and Debt Settlement as debt solutions, is taken from an article appearing on the TASC website. The full article can be read by visiting: Tasc Article. For those of you who are not aware, TASC, The Association of Settlement Companies,is a non-profit organization devoted to maintaining high standards in the settlement industry, and highly thought of.

So, lets get beyond all the hype and really take a look at which program has better outcomes. From the article: TASC, the non-profit watchdog organization for self-regulating the debt-settlement industry, gathered the information from various sources, including the Consumer Federation of America and National Consumer Law Center, the Executive Office for the U.S. Trustees and testimony by credit counseling companies. Indeed, all credible sources.

As I have often pointed out, the main difference in the two approaches is that debt settlement companies work only for the consumer, while non-profit credit counseling works in the interest of the banks and credit card companies. As such they are usually only able to obtain lower interest rates, as pre-established by the banks.

Additionally, settlement companies do not receive any fees from the credit card companies or banks, they are solely paid by the consumer. Where as non-profits are supported almost totally by the banks they serve, by being paid what is called "fair share" or a percentage of all the money that flows through them.

Debt settlement programs are typically 36 months or less, while credit counseling programs are 60 months or more.

One of the big drawbacks of credit counseling programs is that the monthly payments are fixed and many times, even a bit higher than what the consumer was paying on their own. Debt Settlement, however, affords the ability of a customized repayment plan, to fit the consumers budget.

Because of the lower payment option, and shorter duration, settlement often has a higher probability of program completion than credit counseling.

So, which program is a utopia? Neither. Getting out of debt is never easy. However, the key is if you are going to do a structured program at least understand the real ins and outs of each, so your decision is not based on what the propagandists are saying.

If you would like to speak with someone who is knowledgeable and can present both options to you, and make full disclosure about each, then please visit: American Debt Enders. and while you are at the site feel free to subscribe to our Free Credit Counseling Newsletter. Written By:
Steven Ciantro
Member National Association of Certified Credit Counselors
American Debt Enders
help@americandebtenders.com
877-766-2465

Banks In League With Credit Counseling Companies

Hello Again to all my faithful readers who understand the merits of living a debt free life.

I came upon an extremely interesting article on Examiner.com. It is rare for a financial writer to really understand the ins and outs of how the banks really operate to keep you enslaved. But, the article I found by Jerry Troyer, gets it. After doing his homework, he discovered first hand that the relief offered by the banks when a consumer calls directly with a hardship, are woefully inadequate to allow the consumer to meet their payment obligations.

Additionally, he discovered that many banks, when contacted by distressed consumers who cannot afford anything the banks offer them, in terms of relief, transfer the call directly to a CCCS! That's "Consumer Credit Counseling Service".

Mr. Troyer says he has finally come to realize that the non- profit agencies are agents of the banks. Hallelujah!! How totally refreshing to see a financial writer get it.

The article goes on to say that that he has come to learn that the banks pay the non profits for every dime they collect. This is absolutely true and has always been true.

Here is the full article: Examiner Article. It is well worth reading.

If you need debt relief, and want to know all your options, by counseling with people who really get it,whether debt management, debt settlement or an alternative debt relief program that really works then visit: American Debt Enders.

While visiting our website please feel free to subscribe to this newsletter by simply leaving your email address. Written By:
Steven Ciantro
Member National Association of Certified Credit Counselors
American Debt Enders
help@americandebtenders.com
877-766-2465

Controlled Study Proves High Error Rate On Credit Reports

I have long known that over 70% of credit reports contain significant errors. Here is an article that presents the study and its findings proving me to have been correct. U.S.PIRG.

Please allow me to summarize the findings. The big three credit reporting agencies, collect and report information on 90% of all american adults. They are Equifax, Experian and Trans Union. Those files are often sold to landlords, lenders, employers, credit grantors and collectors often without your permission.

Their have been several studies which prove that their is a high error rate in the data contained in your credit report. Enough errors to cause you to be declined for credit, a job, or a loan, or pay a higher rate than you ordinarily would have.

The study cited in this article asked adults in 30 states to complete a survey on their reports accuracy.

Here are the survey results as reported in the article:

- Twenty-five percent (25%) of the credit reports surveyed contained serious errors that could result in the denial of credit, such as false delinquencies or accounts that did not belong to the consumer;

- Fifty-four percent (54%) of the credit reports contained personal demographic information that was misspelled, long-outdated, belonged to a stranger, or was otherwise incorrect;

- Twenty-two percent (22%) of the credit reports listed the same mortgage or loan twice;

- Almost eight percent (8%) of the credit reports were missing major credit, loan, mortgage, or other consumer accounts that demonstrate the creditworthiness of the consumer;

- Thirty percent (30%) of the credit reports contained credit accounts that had been closed by the consumer but remained listed as open;

- Altogether, 79% of the credit reports surveyed contained either serious errors or other mistakes of some kind.

OK, so the next time someone tells you that credit restoration companies are a scamsend them a copy of this article, and tell them to think again.

Their is always so much negative misleading propaganda put out in the general media about credit counseling, especially for profits and credit restoration companies that it is high time someone challenged them to prove their claims. The fact is, unless a company is just fraudulent from the get go, they cannot prove their negative talk. It is the banks and non-profits who are controlled by the banks, coupled with the credit reporting, or should I say debt reporting companies that have a sweet deal going enslaving consumers with this brainwashing fixation on credit report scores and borrowing.

If you find an error on your credit report and need help or even free advice on how to remove it, by all means contact us by visiting: American Debt Enders.

Also, if you enjoyed this article and learned something you did not already know, when you visit our site, click on the link to subscribe to our FREE, Credit Counseling Newsletter for more great unbiased and accurate information to keep you out of debt slavery.

Writteb By
Steven Ciantro
Member National Association of Certified Credit Counselors
American Debt Enders
help@americandebtenders.com
887-766-2465

FTC-On Benefits Of Debt Settlement

Their has been a long standing perception that the FTC has only a negative view of debt settlement companies. With so much misperception and negative press, allow me to try to put things into perspective. Commissioner Rosch of the FTC has taken the following view:

a debt settlement firm can advocate on the consumer’s behalf, especially in cases where consumers are reluctant, embarrassed, or even afraid to contact their creditors directly,” Commissioner Rosch said to the conference attendees. “A debt settlement firm also may be able to provide individualized attention to consumers, taking a holistic approach to all of the consumer’s unsecured debt owed to several creditors, rather than just the amount owed to a particular creditor.

“Managing the complete debt picture and focusing on restoring the consumer’s financial health has always been a critical value proposition of debt management professionals–nice to hear it from the FTC.

In Addition, the commissioner gave the following "best practices" suggestions to the industry:

“limit their performance claims to those they can adequately Substantiate”; not “misrepresent the benefits of debt settlement”; “disclose, clearly and conspicuously, the negative impact that participation in a program may have on a consumer’s credit score, and how long that impact may linger. This disclosure should not be made only in the written contract, but in the ad itself”; and “if a debt settlement firm promises to refund debt settlement service fees to consumers if their debt settlement negotiations are unsuccessful, the firm must honor that promise.”

Additionally, the Commissioner indicated he was not impressed with attempts at self regulation, by the industry as a whole. The above items from an article at the following link: Real Benefits on Debt Settlement Industry.

The National Foundation For Credit Counseling estimates a completion rate for Debt Management programs among its members to be 21%, the rate for successful completion of a good debt settlement program is often double that.

So why so much negative publicity about debt settlement? First, in my opinion, when the sub-prime mortgage business ended, many unscrupulous mortgage brokers found a new career, it was debt settlement. They were not trained to be counselors, only sales people, looking to close deals. Any deal would do. The same way they approached mortgages, they approached their new found careers in settlement. No full disclosure, no truth in advertising, just get the deal done.

Second, their will forever be a battle between non-profit Debt Management Companies, and Debt Settlement Companies, and for profit companies. Non-profits are controlled by the banks, and get paid a percentage of what their clients pay, by the banks. Additionally, the banks control and dictate the terms they are able to offer their clients. Debt Settlement directly competes with them.

I do agree that to many debt settlement companies simply do not do the right thing, which has tarnished the entire industry. Consumers need to be very careful when choosing a settlement company, or even any debt management company. Make sure you are being counseled and not pushed, or sold, or pressured.

If you would like to speak with a counselor, please visit:American Debt Enders.

If you enjoyed this article and would like to subscribe to our FREE, Credit Counseling Newsletter, please do so by leaving your email address at: CREDIT COUNSELING NEWSLETTER.

Written By:
Steven Ciantro
Member National Foundation of Certified Credit Counselors
American Debt Enders
help@americandebtenders.com
877-766-2465