It
is a well researched fact that your credit score can be directly linked to the
type of individual you are successful dating. In this terrible economy it has
become acceptable to ask before you accept that date, what your credit score
is. This is usually asked more by woman than men. So, if this economy has
lowered your score to unacceptable numbers, are their things you can do about
it that are legal?
The
absolute good news is absolutely yes. First let me say that it is a waste of
time to try to do it yourself. There are many reasons for this, the simplest is
that the credit bureaus receive millions of requests to remove invalidated
information from credit reports daily. The fair credit reporting act says that
you the consumer, trying to get a date, are entitled to have only validated
information on your credit report. Trust me, I have been credit counseling a
long time, and you are a babe in the woods when it comes to getting your
information validated, I would challenge anyone who says differently.
So,
if you want to resolve this problem, you need the help of a credit restoration
specialist. For not a lot of money they can actually get removed any
information which has or cannot be validated on your credit report. Once those
feisty negatives are gone, you need to quickly add positive lines of credit.
This can actually be done while the invalidated information is removed. The
following link will take you to a company that can add positive trade lines to
your credit, while the bad stuff is removed. Visit Ox Publishing.
I have no vested financial interest in this company.
While
I have written this article tongue in cheek, I can assure you if you simply
follow the steps, not only will your dating life improve, (please only if you
are single), but so may your self esteem, because you took action.
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you enjoyed this article please do subscribe to our free credit counseling
newsletter by simply leaving your email address.
If
you would like to speak with me directly please do feel free to call or email
me.
Ok
I admit it, in my own life I have not always followed this creed, which is how
I actually became a serious credit counselor. Yes, I am not afraid to share
with you that 15 years ago I went through my own debt crises, and dragged my
family with me. Trust me when I tell you that my crises was very big, because I
was quite successful at the time. You can read it on the About ADE page of our
extensive website. After all, you should know who is helping you resolve your
debt problems.
Millions of
Americans today more than ever before are being forced to
alter their lifestyles because they
are beginning to realize that their buying power is slipping away. So what does it mean to
take action before you have to?
Over the past 4 years if you earn about fifty thousand dollars annually, then
each year you have lost one thousand dollars of spending power. I am afraid the
National debt
does have consequences. So, if you are wondering why it has
gotten so hard to pay your bills, you now know why.To many dollars in
circulation is another reason, as the federal reserve is on a printing
spree.
I speak to middle class
people every day who tell me they have sunken into debt because they have been
supplementing their income with credit cards because they have not been getting
raises. Yes, corporations have been operating with fewer people and they know
those people need their jobs.
Take heart my friend, for
there is an answer to this problem. Before the crises hits,
take a look at your finances and if you know you have that sinking feeling, you
can do something to get debt help. Dave Ramsey espouses using the debt snowball
approach. That’s fine, but will not work for everyone. I prefer more options,
because simply stated we are all different, and debt issues are just as
different as we are. Today, debt relief has become high tech and very
regulated. For example, we can offer debt management programs to pay back in
full and save thousands in interest, while preserving credit.
Or, need lower payments, let us provide a quote for the best debt settlement
program in the country. Perhaps you are one of the millions oppressed by
student loan debt and need help with them.
Why not let us provide a free no
obligation quote on what consolidating
your student loan debt will do for you. We can send you a simple one
page application to provide at no cost all the options for repayment through
the Department of education, and there are many. How about a higher credit score, yes we can
provide you with a consultation with a credit specialist to see what can be
done exactly to raise that score. And believe me, things can be done that are
quite legal.
Or, if you just need free
debt help advice, also known as credit counseling, simply give us a call. We
promise we will only try to help.
The
quality of debt settlement in the past two years or so has been dramatically
improved. Thanks to stringent new regulations put in place by the FTC. The bad
actors basically gone, and settlement actually evolving into almost a
mechanized science, there is really no reason why a consumer in financial
trouble cannot reasonably choose this option to deal with their debt.
Of
course, it is perfectly understandable for a consumer, even after due diligence,
to begin such a program with some level of concern. I think it is called fear
of the unknown.
The
consumer has been most likely dealing with endless phone calls each day from
less than friendly voices being driven crazy. Couple that with the fact that
survival has become difficult because the consumers situation has somehow
changed, and there is simply not enough money to live out each month any
longer. And, because things have so badly fallen behind the credit score has
dropped, so there is no way out of an emergency except through predatory pay
day loan lenders.
When
the debt settlement option comes along and all of a sudden that same consumer
has an ally in the battle coupled with professional guidance and someone,
preferably a good settlement attorney who is part of a bigger program, they
begin to breathe again. When the program begins and they see that they are
constantly contacted by a service representative or paralegal who is at there
service to help with anything that comes up, the anxiety level begins to be
lowered and as the first actual settlement occurs it lowers completely and the
consumer can visualize an end in sight.
Yes,
that end is a new beginning. Credit will now improve through a good credit restoration program. The onset of living a debt free life once again.
The ability to think about a future both for the consumer and everyone else
involved. Now, with proper guidance and budgeting the consumer smarter for the
experience can move forward to a better life.
I
do not think any further comments are necessary.
A
thought occurred to me recently. After being a credit
counselor in both the non profit and for profit arenas for at least ten years,
I noted that the consumers seriously exploring debt settlement programs as a
viable option to debt freedom seemed to have not only increased, but also very
much those consumers who prided themselves their whole lives on working hard
and paying there bills.
I
cite to support my argument the well known whitepaper by
Dr. Bernard L. Weinstein, Ph.D, and Dr. Terry Clower, Ph.D. which can be found
at American Debt Enders Whitepaper on Debt Settlement.html. The professors make a powerful
se supported by research that debt settlement which has really been around
since the beginning of time, really helps the US economy in a win, win situation.
You can read the whitepaper for yourself by visiting the above link, but let me
put forward my opinion about this topic as the economy has actually changed
significantly in the few years since this paper was originally authored.
In
case you have not noticed, if you are part of the so called middle class, and
would someone please define it, your purchasing power over the last four years
has significantly declined. We receive calls from finically distressed
consumers frequently who say that they have no idea why they are no longer able
to manage their debt payments, as very little has changed as far as they can
tell. And there in lies the problem. The purchasing power of the dollar is
decreasing, you can check the federal stats yourself, but your buying power has
decreased by at least four thousand dollars over the last fur years. And that
just assumes that all else has remained equal. In fact, it’s now continually
decreasing because of the Federal Reserves need to print money to service the US
debt load.
This
has become a major problem for US households. Crushing debt, now including
student loan debt, coupled with anemic buying power is a formula for at is
least stress, and at its worst personal financial ruin. There are only two ways
to combat this problem, one is to make more money, and with high unemployment
this is more and more difficult, and the other is to lower the debt burden,
assuming you are unable carry it any
longer.
NOTE:
I am no telling you to stop paying your creditors if
you are capable of doing so. However, if
you are in a debt dilemma, please do avail yourself of the FREE Counseling
numbers below.
Having been a credit
counselor for ten plus years, the debt help industry is ever changing, like
everything else in our world. Not just regulations, but also attitudes. For
example, Chapter 7 bankruptcy used to be considered the worst thing anyone
could do. Just walk away from your debts. Well, this attitude toward a
bankruptcy has changed remarkably. First of all, it is harder to do. Secondly,
the negative ramifications are far fewer and less severe, as overall economic
conditions make it a more reasonable alternative. Depending on your age, would
you ever have believed when you were younger that US citizens, en Mass, would
be losing their homes in foreclosure actions? This was something that only
happened to others.
More than ever, the past
few years have produced a greater percentage of telephone calls with consumers
willing to discuss and consider a bankruptcy, Chapter 7, in order to simply get
a fresh start.
Additionally, now, it is
not unusual for consumers to want a debt settlement program quote, even if they
are making their monthly credit card minimums on time every month.Which is
really what the point of this article is. Consumers are speaking with three and
four settlement companies to get quotes, just the way consumers used to shop
for a mortgage. So why call? Simply because they are now becoming aware of the
fact that their credit card balances are not going down any longer and they are
simply getting tired of paying on these debts every month. Are you familiar
with the expression, the more things change the more they stay the same.
How is it possible that
this happens suddenly? Really it is never suddenly, you see first, they make a
purchase at a reasonable low payment and low interest rate which they feel they
can afford. It is so reasonable that before they now it, the banks raise the
interest, give them the required notice, and tell them that in thirty days
their interest rates are going to increase. How much? Just enough to raise your
payment by twenty five dollars per month. So you feel it is no problem, and
instead of freezing the card’s interest rate where it is, and closing it, you
have agreed to pay the increase. Now you are on your way to being trapped.
Because you do not have one card, you have ten. I have counseled with people
who have over thirty credit cards. Yikes. They were caught sleeping at the
switch.
So, why are they calling
me, your friendly credit counselor? Finally, they are no longer
sleeping! This waking up should have happened a long time ago, but, I am not
beating anyone up, the important thing is that they now realize their error.
One of the big questions
is, can I get a debt settlement quote? Consumers are starting to see this
option as the fastest way out, especially, if they are not candidates for a
bankruptcy. Let me simply say here that this is not the reason debt settlement
programs ever came into being. They came into being assuming that a consumer
had a change in there lives which caused the debt to become a real hardship,
and could not or would not enter into a bankruptcy Chapter 7. So the ten
thousand dollars worth of furniture, that you are sitting on, is now hurting
them. Yes, many calls like this indeed.
And, most people do
realize that it is really somewhat unsavory to offer to pay back less than they
borrowed when they do not even have a financial hardship. If the situation has
changed, and a true financial hardship exists, then that is exactly what
settlement is for.
But, I try to be
non-judgmental in my counseling. I am merely pointing out how differently
consumers look at everything in this so called “new economy”. And make no
mistake, it is exactly a new economy. One in which heavy debt will weigh you
down and disempower you, and keep you stressed out. Is that really how you want
to live? How about, if you are getting stressed by debt, and who can blame you
if you are, you try speaking to a credit counselor, one who counsels for free,
and explains what your options are, and how you can really adjust to this new
economy, and become self empowered by learning to live debt free.
A good place to start is
by visiting the American Debt Enders website and using it as a free resource.
The site is 105 pages and
contains well researched material to help you.
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article you can freely subscribe to this newsletter by leaving your email
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free.
For
people who could no longer afford there monthly debt obligation minimum
payments? Yes, that would be an option very high on the list of reasonable
solutions. However, settlement programs have requirements that dictate the
length of the program which in turn effects what the minimum payment needs to
be to bring the program to a successful conclusion, and even stay within
regulatory guidelines.
So
you may be saying. I thought settling ones debts was dangereous?
If
you have less than 15,000 dollars of unsecured debt and you want to do a
settlement program, you are in a category of the accelerated program, meaning
yiou may have to do a 12 or 15 month program. By the time the fees are added
in, the monthly payment can easily be over 325.00 dollars per month. Simply
stated, that payment may be to high for you. So, what to do?
Well,
the author of this article and American Debt Enders specialize in finding
viable solutions to get you debt relief. If
you are fortunate, the credit card debt or other unsecured debt may be spread
over 4 or 5 cards. If it is, that is a good thing, because the lower each
individual debt amount, the lower the chances of getting sued by a creditor. It
is simply due to the law of diminishing returns. The
lower the return to the debt collector, the less profit, and they are a
business just like any other business.So
that opens even wider the chances that you can successfully handle your own
debt settlement program.
First,
for resources you can avail yourself of to defend yourself in a creditor
lawsuit if you are served a subpoena you should visit creditor lawsuit resources.
If you have debts that are under one thousand dollars, the chances that you
will be subpoenaed on any of those debts are greatly minimized.
So
where to start. Figure out how much you can afford to put into a savings
account each month. Put as much as you can into that account. This is going to
be what you are going to use to settle the debts when the time comes. The real
advantage to settling these debts yourself is that you are going to save a lot
of money in fees, and this may allow you to get expedited settlements. Note: I
would not recommend this approach if the debt load is very high, and you are
expecting many subpoenas. They can come fast and furious in this case, and
easily overwhelm you.
If
the debts are with the original creditor when you start this self settlement
program, it will take about six months for the debts to charge off and be
purchased by a collector. Their
original credit card issuer, will not settle with you, they are not in the
business of loaning you say, 120,000 dollars only to get back 5,000 dollars, no
matter how good you think your negotiating skills are.
Once
the debt collectors have the debt, they will be looking for settlements. Do not
jump at the first offer, and make sure you monitor the phone calls. Why?
Because if they violate the FDCPA, then you can counter claim against them for
one thousand dollars per occurrence. Again, you will find a great deal of more
information about all things related to this topic on the ADE website.
So
here is the bottom line. I could go on and on, probably write a book for you on
this topic. But, the main thing is to keep it simple. If
you would like to subscribe to this FREE credit counseling newsletter, simply
visit: freecreditcounselingblog.com and leave your email address.
Many
wonder what will be the effect of entering a structured debt relief program going
forward. Before we get to the specifics, let me say that if you are looking at
any one of these programs it means that you are suffering from debt oppression.
So, before anything else, the most important thing you can do is to shake loose
from the debt. Why are there so many different types of debt relief programs?
Simple. Because everyone is different, and every debt problem is unique.
Here
we go.
If
you file a bankruptcy, Ch 7, which is really walking away from the debt and
getting a fresh start, right now it will take two to three years before you can
re-qualify for a mortgage.
If
you want to purchase a car, you can almost do it immediately, depending on who
you are dealing with.
If
you do a short sale, the same rules as above apply. As an important note, there
is now talk of shortening the waiting time and making it easier. For buying a
car,same as above.
What
about applying for that emergencycredit card? You will begin to get credit
card offers usually within 6 months of the event. They will be at a high
interest rate, so tread carefully.
What
about if you enter a debt settlement program? Chances are good that your credit
is already negatively effected if you are entering a settlement program. As the
debts are settled, your credit profile will begin to change.
If
you are in a 4 year program that does not mean it will take 4 years to regain
good credit. As each settlement is made there will slowly be an improvement.
You
also need to know that credit restoration programs work. They can legally eliminate
the negatives on your credit report in many cases.
If
you are reading this and you need free counseling to help you decide what to do
to eliminate your debt, here are phone numbers you can call for absolutely free
debt relief advice.
As
of immediately, Chase bank has gone from being one of the best credit cards to
have in a debt management program, to no longer being willing to provide
interest relief and payment relief to consumers who are struggling.
How
significant is this. Well, you tell me. Chase was allowing consumers to pay
back their credit card balances at a new interest rate of 6% in the program. Of
course the credit card had to be closed. But still, 6% when many consumers were
struggling with 29.9% was quite a dramatic change in the interest. Chase even
had a hardship program in which they gave consumers a new rate of 2%, and a new
monthly payment of 1.8% of the current balance. I cannot at this moment tell
you exactly why Chase has decided to make the move, but in this new economy
they have decided it was a step they needed to take for profitability. Even
though I have often written that the banks are not your friend, they are in
business to make money.
Sun
Trust Bank also has a new policy, and it is that Any
account that is past due CANNOT be enrolled into the Debt Management Program
until 3 consecutive minimum payments are made to bring account up to date. Only
then will they be eligible to be enrolled into the program.
How
about the new FingerhutCredit Card Help Policy: If a client has ever been dropped from a program the client will
never be eligible to be set up on any Debt Management Program again. Somewhat
harsh don’t you think?
If
your credit card is on a promotional interest rate it will not be eligible to
be enrolled in a credit card debt relief program until the promotional interest
rate expires. So, be very careful about transferring balances. Something I have
never been a fan of because it really
just prolongs the debt cycle.
So,
in this ever changing world of the new economy, and rest assured it is a new
economy, it is becoming increasingly clear that banks are adjusting to the new
regulations and adjusting at the expense of the consumer to regain
profitability.
Here
is the bottom line. If you are carrying significant debt, now is not a time to
sit back and just accept it. You must be proactive to dump your debt. Because
who knows how much longer these programs will remain viable.
Just
yesterday I wrote about a new bill being introduced into congress that would
allow the Federal government to withhold up to 15% of your salary for any
student loans you may owe. These changes are coming fast and furiously, so stop
sitting back, now is the time to get your financial house in order. If you can
no longer pay the minimums on your credit cards, do not waste your time asking
the bank to lower your payments. Before you get deeper into debt, consider debt
settlement as an option. This industry is back, with the bad actors thrown out
by virtue of the new FTC regulations which have been put into effect in 2011.
If
you would like to talk about the best debt settlement program anywhere, simply visit American
Debt Enders. We are rated #3 nationally and without a single complaint, and
driven to help you get out of debt.
This
is the first real article of this new blog devoted to all things debt
settlement. And the idea for this article came to me because so many people
seeking debt relief have limited options and feel somewhat trapped. Of course
working with a good credit counselor always helps because the really good ones
who are few and far between have made a calling out of their trade.
So,
here is the situation that this consumer was confronted with. 25,000.00 dollars
of credit card debt on one credit card and not enough money to make the
payments. So, her first thought after calling me was to learn more about a debt
settlement program.
The
payments would have been manageable but only if the term of the program went five
years. Good luck getting a good settlement company to accept one debt for a
term of a five year plan, especially when the consumer qualified for a Chapter
7 bankruptcy. I knew this because I sent her for a free telephone bankruptcy
consultation. So, it should have been simple you say.
Well,
not so fast. A major complicating issue was that her religious faith would
simply not allow her to walk away from the debt, which is why she was
interested in settlement, because there she would at least be paying back
partially.
Of
course a debt management program was out of the question, as they rarely reduce
monthly payments except nominally. So, what to do, what to do? Well, thinking creatively,
while a chapter 7 was out of the question, what about a Chapter 13. This is
basically a debt settlement with the protection of the courts. The law on a
chapter 13 says that the payments made to the trustee over the life of the
plan, may not be less that an amount that would be gained in a Chapter 7
liquidation. OK, what that means is the payments in the plan for this consumer
would be extremely affordable. Problem solved.
Many
wonder what will be the effect of entering a structured debt relief program going
forward. Before we get to the specifics, let me say that if you are looking at
any one of these programs it means that you are suffering from debt oppression.
So, before anything else, the most important thing you can do is to shake loose
from the debt. Why are there so many different types of debt relief programs?
Simple. Because everyone is different, and every debt problem is unique.
Here
we go. If
you file a bankruptcy, Ch 7, which is really walking away from the debt and
getting a fresh start, right now it will take two to three years before you can
re-qualify for a mortgage.
If
you want to purchase a car, you can almost do it immediately, depending on who
you are dealing with.
If
you do a short sale, the same rules as above apply. As an important note, there
is now talk of shortening the waiting time and making it easier. For buying a
car,same as above.
What
about applying for that emergency credit card? You will begin to get credit
card offers usually within 6 months of the event. They will be at a high
interest rate, so tread carefully.
What
about if you enter a debt settlement program? Chances are good that your credit
is already negatively effected if you are entering a settlement program. As the
debts are settled, your credit profile will begin to change.
If
you are in a 4 year program that does not mean it will take 4 years to regain
good credit. As each settlement is made there will slowly be an improvement.
You
also need to know that credit restoration programs work. They can legally eliminate
the negatives on your credit report in many cases.
If
you are reading this and you need free counseling to help you decide what to do
to eliminate your debt, here are phone numbers you can call for absolutely free
debt relief advice.