Free Credit Counseling

The Advantages Of Avoiding Bankruptcy

Shortly after the passage of the Bankruptcy Reform Act of 2005, also known as BAPCA, Bankruptcy filings fell to dramatic lows. Fast forward to the beginning of 2008 and bankruptcy filings started increasing to record levels. Business became good again for bankruptcy attorneys.

The problem with the rash of filings which continues through today, is that for those who qualify for in particular a Chapter 7 bankruptcy, which is, in large part, viewed as a "debt walkaway", many consumers view a bankruptcy with far to casual an eye. Please lets get one thing straight. No debt walkaway is void of consequences.

The idea that a chapter 7 bankruptcy is a fresh start is not always true. In some cases there can be a liquidation of some assets to pay back part of the debt. Additionally, in today’s tight credit markets, the bankruptcy will be cause for paying much higher interest rates on a credit you may qualify for for some time to come. Also, you may actually be frozen out of some credit markets, not to mention, some jobs, as more and more employers look at credit reports as a screening device. What about housing? Possibility of being excluded from that dream apartment, especially, if the competition is significant.

Their is no question that for some, filing a bankruptcy is the only way out, however, it should in my opinion, always be the measure of last resort. Seeking the services if a good credit counselor is good as a first step, but be careful. Non-profits which are fine, but also very limited in the options they can point you to, as they are under legal constraints in terms of what solutions they can offer you. You really want to seek the advice of a credit counselor who is familiar with many debt solutions and the advantages and disadvantages of each potential solution. Non profits can only offer you debt management and budgeting as a solution. Whereas, a counselor not under these constraints may be able also to offer you Debt Settlement, Debt Management, budget counseling, and perhaps even an Alternative Debt Relief.

The bottom line is that it is possible, in many cases, to avoid a bankruptcy in a debt crises, and its longer term consequences. A debt settlement program coupled with a debt validation program can avoid a bankruptcy and help restore your credit report at the same time your debts are being dispensed with.

If you are interested in exploring your additional options, please feel free to contact us by visiting: American Debt Enders. or by calling 877-766-2465 for a free consultation.

If you enjoyed this article, please feel free to subscribe to our FREE CREDIT COUNSELING NEWSLETTER.

Written 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

American Debt Enders Declares National Debt Freedom Day

This is a press release put out by American Debt Enders on 11/19/08.
Here it is in its entirety for todays newsletter article.

 Headline: With credit card debt being a national epidemic in the United States,
American Debt Enders is declaring that January 20th, 2009 be the first
National Debt Freedom Day.

       Millions of americans have lost their way financially. Couple this with the
fact that the credit card industry has been allowed to continue its usurious practices
of extreme interest rates and onerous nuisance fees while our elected leaders "Fiddle
while Rome burns", and it should be of no surprise to anyone that we are in the
economic mess we are in.

       We have national smoke out day, so why not National Debt Freedom Day.
To many americans have allowed themselves to become debt slaves to the credit
card industry. Yes, we must take our share of personal responsibility for allowing
this to happen. So, just like anyone suffering from any addiction, we must admit we
have a problem and vow to take whatever necessary action to get to a solution.

        How will the day be celebrated?On January 20th, 2009, and each year following,
let all of us avoid using a credit card for 24 hours. Debit cards are acceptable. The idea
is to one: Get us reacquainted with the idea of paying for something at the point of
transaction, and not having a credit card company front the money for us. Second, think
of the message. We will take back financial control of our own lives, and are stating we
are tired of being victims of the banking industry with their 30% interest rates, and pay
for life programs. Tell me what investor makes a steady 30% return. Third: We will no
longer be victims, but take full responsibility for what has occurred, change our ways,
and move on.

      As is the case with the National Smoke Out Day, it is our hope that some people
will go on to to relearn what it was like before they became addicted to credit cards.
That feeling of having something paid for. As with any other addiction, we can only
empower ourselves to become debt free. Realization that we have a problem is always
the first step. Debt Freedom day is designed to help us achieve that realization.

    The only way to regain control of your money, is to break the credit card habit.
 You can break the habit if you control your money. You can control your money
by learning to budget and track your expenses and income. To do this you need a
budget. If you need help learning to budget visit: American Debt Enders Budgeting Help ,
and use the free tools.

   We need to end debt slavery, one person at a time. Most of our national leaders
do not have a clue. Please, feel free to send this article to everyone and anyone.
You may reprint it in its entirety, provided you keep the signature line and permission
line in tact.

Most importantly, participate in National Debt Freedom Day.

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

This article may be reproduced in its entirety provided the signature line and this permission line are included.

Legal Resource Page Added To American Debt Enders Website

As more and more Americans seeking debt relief enroll in debt settlement programs or simply
default on unsecured debt payments a corresponding increase in collection harassment and lawsuits
is taking place. To that end, and in the interest of providing help and resources that are readily available to assist the debt oppressed, American Debt Enders has added a "Creditor Lawsuit Resource
page to its website.

You do not have to be enrolled in any type of program to avail yourself of these resources. The site
offers links to chat forums in which the debtor can register and ask questions specifically about there own situation and receive a multitude of opinions. Additionally, their is a link to a law firm which offers free evaluation on potential creditor harassment lawsuit situations. If you are being harassed illegally by a debt collector, they will evaluate your situation and if they feel you have a viable case, may well take it on a contingency basis.

The site also contains information on issues related to debt validation letter. A sample debt validation letter is included on the page. The site has been well researched, so that the information contained on it, is truly helpful. Additionally, continual updates and new resources are added on a weekly basis.

The site is unbiased, as American Debt Enders has no relationship with any of the resources listed.
So, if you are facing creditor, and creditor lawsuit issues, I strongly recommend visiting the site.

Written by:
Steven Ciantro
Member National Association of Credit Counselors
American Debt Enders
help@americandebtenders.com

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

What Is "Locus Of Control" And What Does It Have To Do With Debt?

      As I am currently in the process of renewing my NACC Credit Counselor Certification, one of the chapters has to do with "Rotter's Locus of Control". The word Locus is latin and basically means position, and J.B. Rotter was a psychologist whose work goes back to the 60's. The Locus of Control idea is that as humans we tend to think one of two ways about the circumstances and events that shape our lives. Internal Locus of Control people believe that the circumstances and events surrounding them depend on their own ability and behavior, and conversely, External Locus of Control people see the world as driven strictly by luck or chance.

    So what does all of this have to do with debt you ask? Almost everything. If you have an external Locus of Control and you find yourself in a position of being oppressed by debt, regardless of how you got there, then you are one of those people who looks for a magical debt relief program that will take all of the burden off of you and allow the debt to disappear. If you do enroll in any type of debt settlement or debt management program and hit even the tiniest snag, you will blame everyone involved for not doing there job, instead of calmly taking control and resolving the problem. If you cannot make your payment one month, it will be because you have chosen a bad program, before any other rational reason. You may be one of those people who "shop" for a Debt Management Program quote, thinking that you will somehow get better pricing from one program over another, but never actually go forward with anything. You believe that the fact that you have a debt problem is the fault of the banks, the credit card companies, the casino, your spouse who does not fulfill your needs or any other number of possibilities. I do not mean to be harsh here, but if you see yourself in any of this, there is hope for you.

  What about an internal "Locus of Control". If you are one of these people, then you are way ahead of the game. You realize that regardless of how the debt problem happened, you refuse to allow it to get the better of you and will do what is necessary to gain self empowerment and debt freedom. You will find one credit counselor you trust and let he or she help counsel you on what options are available to you so that your debt issue may be resolved once and for all. You will be open to changing your behaviors so that you avoid the debt pitfalls of the future. You will take what the counselor has to offer and use it. Learning to budget, understanding various program options like debt settlement, Bankruptcy, a debt management program, or how to deal with the creditors yourself in a more effective manner.

  If you would like to know if you are an internal or external "Locus of Control" person you can take the test developed by J.B. Rotter by visiting: http://www.psych.uncc.edu/pagoolka/LC.html , doing so will give you insight into yourself and help you gain knowledge to empower yourself in all areas of your life.

Another thing that will empower you in the area of debt is to subscribe to the newsletter feed from this blog. You can do so by visiting:  http://freecreditcounselingblog.typepad.com/creditcounseling/, and simply leaving your email address. Your information will not be shared, nor will you be bombarded with emails. If you have found this article to be helpful, or would like more information about your particular debt situation and what can be done, please feel free to contact me using the contact information below.

Written By:
Steven V Ciantro
Nifce Certified Credit Counselor
American Debt Enders
Help@americandebtenders.com
877-766-2465

This article may be reproduced in its entirety provided that the signature line and this permission line are included.