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If You Have Not Yet Taken Action To End Your Debt Slavery, Your Brain Has A Disconnect.

I am in a great position to see first hand what the banks are doing to keep you a debt slave because debtors share so much excellent information with me. Here is the latest piece of information I have received.

After raising interest rates on it’s card holders that have consistently paid on time and more than the minimums to 29.9%, Chase bank sent out a notice which read “GOOD NEWS”, Are you interested in lowering your interest rate? Do you think people will be opening these? Yes. The mailer then outlines the 3 easy steps you need to take to get your rate reduced to 27.99%, no, that is not a typo, in 12 months time. These people are playing card holders for idiots. Even worse, the tactic is probably working. This is like asking do you want me to beat you with the big baseball bat, or the smaller one.

So how do I get this wonderful new low rate? The mailer goes on to explain. Simply visit the www.chase.com website before April 30th, 2009, set up automatic bill pay, continue with no late payments or returned payments for 12 consecutive months, and just like magic, they will start beating you with the smaller baseball bat— that 27.24% interest rate. It actually takes 12 months to get this ridiculous equally usurious interest rate!

If you receive or received this notice, or anything like it, and it does not spur you on to take action to end your debt enslavement, then please, email me your name, because I want to put you on my prayer list. And I will pray that God will open your eyes.

On the other hand, if you are awakening, I commend you. If you would like to consider a Debt Management Programor you are in a debt crises and would like to discuss a Debt Settlement Programor just need debt advice, please feel free to contact us.

If you enjoyed this article and would like to subscribe FREE, to this newsletter feed, please visit: American Debt Endersand click on the subscribe now tab, to receive this Free Credit Counseling Newsletter, FREE.

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

Why Debt Settlement Over Bankruptcy? Choose Wisely.

If you are considering Bankruptcy instead of a Debt Settlement Plan, make sure you are aware of the advantages and disadvantages of your decision. If Bankruptcy is the only option for you, then you should seek legal advice from a bankruptcy attorney.

The following information is not intended to be legal advice; rather it is just an overview on the basics of the 2 most common bankruptcy types.

There are 2 different types of bankruptcy that a client may consider: Chapter 7 or Chapter 13. On October 17, 2005, the bankruptcy code was revised by the “Bankruptcy Abuse Prevention and Consumer Protection Act.” [BAPCPA] This revision was intended to eliminate the option of Chapter 7 Bankruptcy for people who could afford to repay some of their debts. Now, in order to qualify for Chapter 7, a client’s expenses will be examined using the government’s “means test” which was introduced as part of the 2005 revision to the law. This test analyzes a client’s income and expenses using national and local living standards, and the median income for the client’s state.

Chapter 7: “No asset” bankruptcy – You do not have to pay any portion of your debts.

To qualify for a Chapter 7, first a client must obtain Consumer Credit Counseling from an organization approved by the United States Trustee’s office within 180 days of filing. The counseling is intended to provide the client with alternatives to filing for bankruptcy.

A client must pass the “means test.” If a client has a certain amount of disposable income left monthly, then they will not qualify for Chapter 7 and will only qualify for Chapter 13.

Most bankruptcy attorneys require you to pay their fees up front in full before they will process your bankruptcy. Fees vary by state.

A bankruptcy will remain on your credit report for up to ten (10) years.

Chapter 13: “Repayment Plan” bankruptcy – You must repay a portion of your debts. Chapter 13's can be costly.

- The court will analyze your income and expenses, and set the client up on a repayment plan with their creditors typically for 3 to 5 years.

- The bankruptcy Trustee monitors and administrates your payment plan.

If you cannot file a chapter 7 bankruptcy, you may be much better off entering a valid Debt Settlement Program , administrated by a law firm. The debt settlement program will not be listed on your credit report, you will not need to be involved with the courts, and a chapter 13 is really a quasi court ordered settlement program.

Bottom line: You need to get the facts. You can get a free quote and consultation by contacting us at: American Debt Enders.

If you enjoyed this article, please feel free to subscribe to our FREE Credit Counseling Newsletter. We never share your information, and never spam you. Wtitten By:
Steven Ciantro
Member National Association of Credit Counselors
American Debt Enders
help@americandebtenders.com
877-766-2465

Important Notice Regarding Changes To Your Account

Most recently someone I know received a notice from a credit card bank with the above headline written in bold. This person has excellent credit and always pays more than the minimum balance. However, they do not use the card, so the balance keeps going down.

The current interest rate on the card is 8.99, the credit card company is giving my friend notice that they are raising the rate to prime plus 13.99, which would make the new rate about 17.99%.

Here is the kicker. The notice says, "Important, Please know that you have options". If you accept the new rate there is no need to do anything. Isn't that just nice of them. On the other hand, "If you do not accept the APR changes", your card Will no longer be available for use". Also, you will lose any rewards points you have accumulated.

Now for the implied threat. "If we close your account we will not be liable to you for any consequences resulting from closing your account or suspending your credit privileges". They provide the disclaimer because they know that closing the account will negatively impact your credit rating. This is the equivalent of the loan shark telling you he's raising the "Vig" and if you do not pay, he cannot be responsible for the outcome, you know, like broken legs, etc.

The reason stated for the change in terms, is that the bank needs to maintain profitability, and your paying more than you are asked each month, on time, is not allowing them to rip you off, so they are trying another tactic.

Aren't our lawmakers wonderful.They wrote a new law making all this legal, called the "credit card reform act". It does not officially take effect until June, of 2010. So, the banks are trying it out early. You know, like practicing.

Under the law when parties rewrite the terms of an existing contract in this manner it is called "Novation". Their is a program called " Court Mediation Services" which utilizes this same legal concept, and has been doing so for 5 years, to turn the tables on your creditors and get you out of debt. The program works, and you can learn more about it by visiting: American Debt Enders. Just click on the tab that says" Alternative Debt Relief".

If you would also like information on debt settlement or debt management, please feel free to browse our site as we also offer these programs. The consultations are always free and we are on a mission to help you attain debt freedom.

Also, please feel free to subscribe to our FREE credit counseling newsletter, by clicking on the subscribe now tab at our site.

It is time for you to take control and not allow yourself to be victimized by these thieves. We want to help. Always free consultations with no obligation. Written By:
Steven Ciantro
Member National Association of Certified Credit Counselors
American Debt Enders
Help@americandebtenders.com
877-766-2465

Debt Settlement Is For More Than Credit Cards

Generally, when people talk about debt reduction they are referring to credit cards, and sometimes medical bills. But, in point of fact, debt settlement can be used for a wider group of unsecured debts. For example: Rental agreements and leases. Yes, why? Because these agreements are unsecured debts, and, provided you are no longer living in the unit, they can be settled on.

How about second mortgages after a house has been foreclosed on? If the second mortgage was not handled by the foreclosure sale, in other words, not enough money was paid to cover it, then, it becomes an unsecured debt, for which you are still obligated. At this point, the debt can be qualified for a debt settlement program and settled on.

What about when a business goes out of business? Usually, there are vendor bills and business debts which are unsecured. As long as you are no longer doing business and the debt was unsecured, their is a special program for settling these debts as well.

So there you have it. A good credit counselor, working in a for profit environment will be able to bring you far more solutions to avoid bankruptcy than a non-profit could ever. Why? Because, for the most part non-profits are beholden to the banks and credit card companies because they are paid by them! And, are constrained from offering other solutions beyond debt management programs, which are controlled by the banks.

If you have a debt issue and want to know all your options so you can make an intelligent decision, visit us at: American Debt Enders and get an intelligent free credit counseling session to learn all your options. Written By:
Steven Ciantro
Member National Association of Credit Counselors
American Debt Enders
Help@americandebtenders.com
877-766-2465

Ideal Time To Take Advantage Of Debt Management and Debt Settlement Programs

Banks and Collectors are finally getting it. As personal bankruptcies increase because so many consumers are throwing up their hands and surrendering, banks and collection companies are in a more favorable frame of mind for making debt management programs and debt settlement programs more favorable.

Recently Capitol One which would not lower their interest rates in a debt management program below 15.9%, just did exactly that. Also, lowering the required minimum payment to 2% of the total outstanding balance. This move makes putting a Capitol One card into a debt management program perfectly reasonable. Some creditors are even allowing other types of accounts such as flex spending accounts into debt management programs.

Collectors are becoming all the more aware that it makes Perfect sense in today’s poor economic climate to take less money by settling the account, as opposed to the cost of litigating and coming up with the same amount of money over a longer period of time.

This is a very bad time to be ignoring your debts and hoping they will go away. They will not.

This current climate is the time to take full advantage of the situation. If you would like an absolutely FREE quote on what a debt settlement or debt management program can do to help you become debt free, please visit:American Debt Enders. Also, while you are visiting our website, please feel free to subscribe to our FREE, Credit Counseling Newsletter for more self empowering information. Written By:
Steven Ciantro
Member National Association Of Credit Counselors
American Debt Enders
Help@americandebtenders.com
877-766-2465