Free Credit Counseling

Debt Solutions, One Size Does Not Fit All

     When it comes to products which we purchase everyday to live, we are faced with selecting from an almost limitless variation of manufacturers, styles,brands,colors, performance features, high end low end and on and on. All of which will do the job. Our individual selection is always based on our unique need and personal taste. So why would anyone think that when it comes to seeking a resolution to a debt issue things would be different.

Lets say you are not feeling well. You go to the doctor and he concludes you have a very serious illness.
This is the bad news. The good news is he follows it by saying there are 6 treatments available and all of them will absolutely cure you. Each of the treatments has a different side effect so you and your doctor have to decide on which of the treatments will be the best suited for you.

Debt problems and solutions are no different. All of the solutions are competing for your attention.
The non-profits, for-profits, debt consolidation, debt settlement, bankruptcy, credit restoration and debt elimination companies, and self help books, each available and each viable depending on you and your debt situation. Which is why this credit counseling blog is devoted to educating you and presenting, hopefully, the best information available to help you focus in on what is best for you. In the end you are the patient and must become empowered to take the appropriate action.

With all this in mind I would like to offer what I believe to be my own sage advice. In todays world of regulation and oversight, while there are scammers, know that there are relatively few scammers in these industries today. There is no such thing as a debt resolution or credit counseling company that is perfect, and that absolutely includes non-profits.  Look for one that is up front and honest and willing to tell you the upside and downside of there program. Is there any type of guarantee offered? Every company in the credit counseling and Credit Restoration industry, and it is a huge industry and getting bigger, needs to make a living. Salaries need to be paid just like any other business. It makes no difference whether it is a non-profit or for-profit, they must all take in money to continue to exist. So please, do yourself a favor and be realistic. Try to cut through all the hype.

For example, it is common knowledge in the credit counseling industry that the credit bureaus hate all credit restoration companies. It's a control issue. They want to be the big kids on the block. They are very powerful and create as much ill will toward credit restoration companies as they can. Even the best are not immune. Additionally, the non-profits tend to play the saints of the industry, because they are non-profit which somehow makes them special. The simple truth is there are good and bad non-profits and flashing the term non-profit means they do not pay taxes, and are not able legally to offer debt relief solutions like debt settlement, or other alternatives. They generally operate as agents of the banking industry, by whom they are well paid.

The focus of this article is not to slam any industry or anyone's motives. Just be realistic when seeking a debt solution that will work for you and do not buy into the propaganda. Select a program, and company that seems and feels right to you, after doing your homework. Finally, whatever you do. Do not ignore a debt problem, empower yourself by seeking a solution. You will be doing yourself a great favor.

Written By:

Steven Ciantro
American Debt Enders
Credit Counselor
Help@americandebtenders.com

This article may be reprinted in its entirety provided the full signature line is used including this permission statement.

What's Up With Bankruptcies?

Here is an article sent to me by Richard Garcia. Richard has been helping people become live
a Debt Free life for many years. If you take the time to go through this you should know that there are better options than Bankruptcy for many. Richards contact information is below.

Hearing on the Second Anniversary of the Enactment of the Bankruptcy Abuse
Prevention and Consumer Protection Act of 2005: Are Consumers Really Being
Protected Under the Act? There is an audio video on this site that is very
informative.
http://judiciary.house.gov/oversight.aspx?ID=303

CONSUMER BANKRUPTCY FILINGS UP NEARLY 40 PERCENT IN 2007

January 3, 2008, Alexandria, Va.— U.S. consumer bankruptcy filings increased
nearly 40 percent nationwide in 2007 from the previous year, according to
the American Bankruptcy Institute (ABI) relying on data from the National
Bankruptcy Research Center (NBKRC). The data showed that the overall
consumer filing total for the 2007 calendar year (Jan. 1 – Dec. 31, 2007)
reached 801,840 compared to the 573,203 filings recorded during the similar
period in 2006.

http://www.abiworld.org/AM/Template.cfm?Section=Home&TEMPLATE=/CM/ContentDis
play.cfm&CONTENTID=50271
Bankruptcy Means Test
One of the most controversial and complicated additions to the new
bankruptcy law is the requirement that every debtor complete a bankruptcy
means test before filing bankruptcy.


The bankruptcy means test is a complicated mathematical calculation to
determine what type of bankruptcy a debtor must file. There are several
parts to the bankruptcy means test that must be completed using figures
established by the U.S. Census Bureau and the IRS.

http://www.bankruptcyhelponline.org/bankruptcy-means-test/

My Best Wishes To You For The New Year!
Richard Garcia
949-240-7401
800-597-9046 X 6060

Car Repossessions, Voluntary And Involuntary

    With debt loads of all kinds setting new records every month in the United States, and by the way, the United Stated is not alone in this regard, in Great Britain, the problem is actually worse, many people have questions about vehicle repossessions. Lets be clear, I am a Credit Counselor not an attorney, so this article is not intended to be legal advice, but I assure you, it is accurate.

If you owe money on your car, this is a secured debt. The contract you signed when purchasing the vehicle stated that in the event you default on your payments, the bank or finance company, had the legal right to take back the collateral. After failing to reach you or not hearing from you when you miss a payment, the holder of the agreement will get very nervous and exercise there right to get the vehicle back into there possession. There are a couple of caveats here, that you might find useful to know.

One of them states that while they have the right to take the car back, they do not have the right to disturb the peace doing it.  They cannot come blasting into your home demanding that you surrender the keys or be arrested. They cannot arrest you for not having the money to pay your debt. If the vehicle is in a garage, they do not have the right to break into the garage and take it out. The removal must be peaceful. They do have a right to knock on your door and request that you give them the keys. If the car is parked somewhere outside, they also have the right to tow it, without notifying you. I have counseled with people who have held off the repo man for 8 months, buying time to cure the arrears. This strategy can of course be very stressful, and I do not recommend it.

If you cannot make your car payment, do not hide your head in the sand. Call the lender and be straight with them. See what you can work out. If they repossess the vehicle, it will cost you very high towing and storage fees, which may make it impossible to redeem the car. If they auction the car off, most likely, it will be sold for far less than the value of the note, and they will come after you for the difference. Ouch! Yes, this is a business and everyone is making money off your misfortune.

What about turning the car over to the note holder voluntarily? This is called a voluntary repossession. Basically, the same rools apply, without the embarrassment of having it towed away. Once you hand the keys back over to them, they will look to auction the car. Again, most likely, it will sell for far less than the note. They will come after you for the difference.

A few words about the difference. This is now an unsecured debt. This is a relatively good thing because unsecured debts can be settled on. You can try and settle the debt for far less than you owe yourself, place the debt into a debt settlement program and let professionals handle it for you.

Written By:
Steven Cianro
Credit Counselor
American Debt Enders
Help@americandebtenders.com

This article may be reproduced in its entirety, provided the entire signature line including this permission line is included.