Consumer Credit Law - Do You Need A Credit Attorney?

Consumer credit law.  Just the name sounds ominous.  It brings up images of debtors prisons and courtrooms where credit attorneys argue about your worth as a person just because you are not able to pay your debts as agreed. Don’t worry. There aren’t any more debtors prisons. But a low credit score might make you feel like you’re in one.

Listen, things happen.  Circumstances change.  Creditors sometimes wear blinders.  All they want is their money.  Credit law is daunting and complicated.  I know I constantly preach about how you can settle your debts yourself, and I believe that you can.  You need the right education, the right tools and above all the commitment. In some cases, you are going to need someone specializing in consumer credit law.

Even after you have negotiated and settled your debt, marks and blemishes can remain on your credit file for years. This can (and it’s frankly certain in this economic climate) prevent you from getting home and auto loans. Even if you are able to borrow, you will get the highest rates and end up spending money on increased fees and charges to offset what the lender perceives at an increased risk.

Even if the negatives on your credit report aren’t your fault, as in the case of identity theft. The majority of credit reports contain errors of some kind. And even if the entry is accurate, but negative, you need to try to get it removed.

You have debt rights.  You have the law on your side.  The FDCPA ( Fair Debt Collection Practices Act) protects you from unscrupulous creditors. But you do have to have a foundation, a basic knowledge of debt law.  I don’t usually speak too highly of lawyers, I mean, who does.  But the truth is that we all hate ‘em, until we need ‘em.

Debt laws are made to protect you.  But a good credit lawyer can’t hurt.  These guys have taken on creditors and collection agencies before.  They know what the credit bureaus can and can’t do.  They know the procedures that can quickly get negatives removed from your credit report.


I’m not singing their praises.  I’m just saying that the time comes for a little help, when you may not feel you know enough about credit law.  You may need to turn to a professional who is experienced at dealing with credit bureaus and can make sure your credit rights are not violated!

If you have issues like a credit judgment or two on your credit report, there are procedures to get this removed.  Getting a judgment vacated is not easy, but it can be done.  It’s really the experience factor that I think is important here.  Credit lawyers have done this before.  They already know what we as consumers would have to learn.  And even after we learn it intellectually, we are still completely unfamiliar with the court procedures.  If you are unable to get the debt judgment vacated, it can remain on your credit file for 10 or more years.

Practicing credit report law takes time to learn.  While there are a lot of simple things you can do to correct your report, not all reports are simple.  Many, in fact most, have numerous errors. In the case of identity theft, the errors and negative information can be almost insurmountable.  Identity theft is definitely an area where you are going to need to contact an attorney who practices consumer credit law to correct the issues on your credit report.

Just How Funny Is Bankruptcy - Well,,,Pretty Funny

I thought this was so good, I had to put it up here.

Christian Credit Counseling? - Be Careful!

Debt Settlement Resources

While there are hundreds of debt settlement resources available to the consumer today, you really need to follow the old axiom “let the buyer beware”.  In many cases credit card debt services are just calling the credit card company and taking the first offer they can get.  Like I have said in many other posts, MOST credit card companies are willing to negotiate to some degree.  Many will already have a settlement offer in mind!

A debt settlement company SHOULD be seeking the best deal for their client.  But in too many cases they will just call the creditor and find out what they are willing to settle for, package it in the form of an offer they can present to you, and then act like they have had to do some real work.

What a scam.  Not all debt management resources are honorable.  They charge you 3-5 THOUSAND dollars for what amounts to a few phone calls. I don’t know about you, but I certainly don’t call this debt negotiation.  That’s why I constantly say that you can really do this yourself.

Another problem is that consumer debt relief should involve more than just the negotiation.  It should involve ongoing education, consumer debt management advice and debt management counseling.  Once you get out of debt, you need to make sure you have the knowledge available to stay out.

I know I have always said that it is a last resort, and it is, but don’t ever take bankruptcy off the table.  But do take it very seriously.  If you have a business that has massive unsecured debt, you should look at bankruptcy options as well as looking into all other available debt relief options.

The moral of this story is that you should know what the debt settlement resources and options are before making a decision.  Education is key to getting out of debt.

Bailing Out The Banks

The government doesn’t have the money to do this. They are already operating on borrowed money and don’t have enought to meet current obligations. Now they want to get us into the banking business?

This is your money people. Debt doesn’t just effect the private sector. Now, the Feds have decided to take trillions- YES, THAT IS TRILLIONS! - of dollars of money that they do not have to bail out the banks. It’s all very well and good that the banks don’t go under, but its still a bandaid on a gunshot wound.

I can sum up my opinion of this in one sentence. Where will they get the money?

Tax Debt and How To Deal With It

There will be those that disagree, but I have basically one opinion on tax debt.  Let someone who knows the system handle it for you.  Don’t attempt to negotiate with the IRS yourself, you will get screwed.  Thats about as straight as I can give it to you.  There are plenty of good attorneys who can handle tax debt for you.  They have negotiated it before.  They know the law, they understand the system.  They problem is that most of the IRS employees have limited understanding of the tax code.  But not to worry, along with their complete lack of knowledge, they also get far reaching power to collect. 

They can seize assets, seize wages, seize bank accounts ** WITHOUT GOING THROUGH DUE PROCESS OF LAW **  Thats right - they don’t have to use the court.   This is a debt where they actually can put you in jail if it gets that far.  I don’t want to be all gloom and doom.  But if you have substantial tax debt, this is the area where I do not recommend that you handle it yourself.  The knowledge involved is just too specialized and too complex.

Judgement Debt

If a creditor sues you in court and obtains a judgement, it can create a world of problems for you.  It is extremely long term, and almost impossible to remove from your credit report.  A debt judgement gives the creditor certain rights to collect the debt that they didn’t have when it was a simple unsecured, collectible debt.  They now have the right to attach your wages, seize certain property and use other remedies that were not available to them before. 

The bright side of this is that you can still make a deal after losing a judgement.  Its is however difficult to get it removed from your credit report, and you will need to make sure that you negotiate this BEFORE you make a payment agreement or a settlement.  It is extra work for the attorney, and without you giving them something in return - they just wont do it. 

If you offer to pay 50% - and they come back with an offer at 75% of the debt you might want to agree to it if you can afford it with the stipulation that they have the judgement vacated when the bill is paid.

You can deal with judgement debt, it’s just more complicated.

Student Credit Card Debt

Every student should watch this. Its important to know what debt can do, and it’s completely entertaining.

How To Avoid Bankruptcy with Credit Card Debt Negotiation

Credit card debt negotiation can help avoid bankruptcy even if you are overloaded with credit card debt.  Nowadays, too many people opt to take the easy way out of getting rid of their debts.  Bankruptcy has been around for many years.  People continue to take advantage of it and use it for their personal use.

Bankruptcy is considered the last thing to do if you can’t get your finances together.  However, if this is the route you take, keep in mind that it can have a devastating effect.  Not only will it mess up your credit score, it can also prevent you from getting certain types of employment.  Many employers check a person’s credit record to see how trustworthy they are.  If your report is not up to par, then you probably won’t get hired.

With credit card debt negotiation, you avoid the stigma from bankruptcy.  You will be able to reduce your debt costs.  It helps because then you can get a repayment plan that will help you pay off your debts faster and easier.  This is a simple way of paying off debt, yet not be scarred as you would if you chose bankruptcy.

Your creditors work to reduce your debt to a negotiated amount.  The amount can be reduced by up to 60 percent of the original debt cost.  You can negotiate either a lump sum payment or lower payments and low or no interest rate.  All of these factors working together can help you avoid bankruptcy.  With lower payments, you can save more money.  In turn, the money you save can be used to pay off other debts.

There is money that sits in your account that is set up for you.  These funds are to be used get rid of your debt.  After enough funds are in there, the negotiation with the creditor starts.   After the debt negotiation is completed, you have to send the specified amount to the creditor from your account.  After the payment has been made, the debt is considered settled, and the credit repair process can begin.

The debt negotiation is supposed to be conducted by professionals that are authorized to negotiation with your creditors.  It’s better to allow a professional company to do this rather than you doing it yourself. Things will get done properly and quickly.  This isn’t rocket science, you can conduct a credit card debt negotiation on your own by learning the skills and procedures.  It’s worth reading up on how to get out of credit card debt just to avoid bankruptcy.

After the negotiation is complete, you can go back to managing your money properly.  You can also be grateful that you didn’t have to subject yourself to file bankruptcy.  That is one of the worst things you can do.  It may be an easy way out for some, but when others check your credit report, they make think differently.

The Benefits Of An Unsecured Loan For Debt Consolidation

The Benefits Of An Unsecured Loan For Debt Consolidation

People can use unsecured loans so that they can consolidate their debt.  Having an unsecured loan may be beneficial for some people.  There are different kinds of lenders that specialize in these kinds of loans.

If you are fortunate enough to get this type of loan, then you will be able to place your debts, such as credit cards and other miscellaneous debts, into one monthly payment that is usually cheaper.

If you were to get an unsecured loan, the lender would either disburse the funds to you or directly pay the creditors.  Actually, the latter would be a better suggestion.  At least the creditors will be assured of getting their money.  You would be able to include any debts that had high interest rates to be consolidated into one payment.

With an unsecured loan for debt consolidation, there are several benefits that would work to your advantage:

The interest rate from the loan would be lower than normal loans.  You would be able to save some money.

You wouldn’t have to concern yourself with missing any payments.  They would be combined together.

With just one payment to deal with, it would be a larger one rather than smaller payments scattered everywhere.

You would be able to improve your credit history and rating.  Your older debts would be paid on a timely basis.

You would be able to manage your budget better.  Having to keep up with numerous debts can be a challenge.

Having an unsecured loan for debt consolidation can be a good thing.  The downside is that not everyone can get one because everyone will not meet the qualifications to get one.

If you’re part of the “bad credit” club (bankruptcies, write-offs, collections, etc.) then more than likely, you will not qualify for this type of loan.  You would be considered a bad credit risk to them.  The lenders would feel that you are not trustworthy of paying on your debt in a timely manner.  The lender would have to look at your credit score and decide from there.

However, miracles have occurred where some people with not-so-good credit ended up getting an unsecured loan for debt consolidation.  The catch with this is that you would have to pay more in interest.

There are places on the internet where you can actually apply for these loans.  It may be convenient for some, but a lot of times, the face-to-face meeting is better.  If you do decide to apply online, you will still have to show proof of income and other related items.

When getting an unsecured loan for the purpose of debt consolidation, one thing to remember is that you must use prudence when doing this,  Make sure that you are disciplined enough to know that only you can be held responsible not to rotate back to your old ways.

Student Credit Card Debt

7 Tips On Finding A Debt Settlement Company For Your Credit Card Debt

Some people are looking to settle on their credit card debt, but aren’t sure how to how to go about it. There are many debt settlement companies out there that specialize in settling credit card debts, but sometimes it can be difficult to determine if it’s legitimate or not.

Some of them are reliable and reputable, others are nothing more than shams and frauds that just want your money. You’ll still be sitting with a mountain of debt while they’ve moved on to their next victim.

If you are thinking of going this route, there are some things you need to know before you commit to a debt settlement company. Here are 7 tips you should take heed of prior to picking one:

1. Within the debt settlement industry, there is a trade association called TASC or The Association of Settlement Companies. This association works with its members so that they will be in compliance with the standards and rules of the industry. If the company you want to use is not a member, then find another debt settlement company.

2. You need to know up front what kind of fees the credit card debt settlement company will charge you. Some of them charge one flat fee. This flat fee is determined as a percentage of your total debt cost. Some of them get this fee each month. They even get it when no settlements have been finalized. The fee should be connected to the result of the settlement and not as a percentage.

3. If you want to know about money back guarantees, they should be at least be good for 30 days. If it isn’t then don’t accept the agreement. Don’t allow the debt settlement collectors to talk you into something less than 30 days.

4. If you ask about commission and they tell you yes—watch out. They might try to railroad you by charging you exorbitant fees. Forget it and move on.

5. When dealing with credit card debt settlement companies, your credit will be affected negatively. If you ask and you’re advised otherwise, then that’s a red flag to not do business with them.

6. Asking how long it will take to finish the credit card debt settlement is like asking when you will stop growing. No one knows the answer to that, and the collectors don’t know the answer about time frames. If they tell you otherwise, they’re lying just to get your business.

7. When you ask about your first settlement, they should tell you that it should be done within 12 months. Anything longer than that is a lie and a fraud.

Once you get these questions answered, you should have enough information to determine whether or not you will select them to represent your credit card debt settlement. You can also check with your local consumer division as well as the Better Business Bureau to see if they are legitimate or have numerous complaints against them.

It’s better to be informed and educated up front than wait until later to get scammed.

Credit Card Debt Elimination Services

Everyday, people are struggling to get rid of their debt, in particular, credit card debt. Advertisers constantly bombard unsuspecting people with ads that claim to promise “100% credit card debt elimination” or something similar without you having to make payments. Well, you can do that with bankruptcy, but thats about the only way.

Realistically, you should expect to save about 30 to 50% in a debt negotiation and settlement plan. Credit card debt elimination programs don’t seek to get your creditors to forgive your debt entirely. They seek to come to an agreement that you can both live with where you pay what you can afford, and the creditor takes the tax loss for the balance. So everyone gets what they want.

If people tell you they can eliminate all of your debt then they are offering nothing more than a marketing scheme designed to get your money or at least as much money as they can suck out of you. Any service or company that promises to eliminate all of your credit card debt using “elimination services” is not operating under ethical guidelines. There is nothing ethical about telling someone that they can promise you that.

These credit card debt elimination services are not entirely truthful because by law, you are required to pay what you owe on your credit card debt. However, the scammers and schemers will try to dupe people into thinking there is some magic for them not to make payments and the debt will just disappear.

There are laws that that specify that if you owe on a credit card debt, that you are legally obligated to pay it. In order for you to get a credit card, you had to provide information. You also had to provide your signature in order to verify that you had read the rules and regulations regarding paying what is owed on the credit card.

No ethical company would tell you that you can negotiate all of your debt away. However, that’s what these so-called debt elimination plans try to con people into doing.

The practical thing to do is to make payments on your credit card every month. You should also pay your credit card debt in a timely manner. This is important because this will reflect on your credit score.

A shady debt elimination program is nothing more than a way to take your money and keep you in debt. Your debts will still be there because you haven’t paid on them. In order for debt negotiation and credit card debt elimination to work, you must have written agreement negotiated with your creditors.

Be careful when people approach you with these types of tricks and schemes. You may be in more than you bargained for, not only with your creditors but also with your credit.

If it sounds like I am being a little harsh, I am. But its important that people realize what they are getting into, and have truthful expectations of what is in store for them. I’ve never been one to blow sweet smoke in anyones face. Hopefully, this is what you want to hear. The facts!

In my opinion, the best way to use debt negotiation is to do it yourself, period. You know your financial situation better than anyone. You need to learn a few pointers, and get some guidance – but the actual process isn’t as complicated as people have made it seem. Credit card debt elimination is a combination of factors. It includes both a settlement amount, and a partial forgiveness of the debt. It’s a compromise. Planned and executed properly, it can help you get out of debt, stay out of debt and get your life back in control.

How Christian Debt Consolidation Can Help

There are Christians who are over the heads in debt just like the rest of the world. They are so frustrated and they’re at their wits end. They cannot do much with debt hanging over their heads. To be honest, Christians should be the last ones worrying about debt. There are resources available to help God-fearing people and others.

Christian debt consolidation services are available for those believers that need a solid financial foundation. It combines the spiritual with the practical. Christians can’t just have the spiritual and think they’ll get out of their debt situation.

They need to have both so there will be a balance. The principles of these types of services are based on Christian doctrine. So, anyone who is a Christian should not feel threatened. However, there may be non-Christians who may be offended at this type of setting.

This type of program is designed to help people have financial freedom in their personal life. They work with people and show them how they can pay off their debts. The good thing about this is that there is not a set fee. The fees are based on the loan and how much the client is able to pay each month.
There are different Christian organizations that assist with Christian debt consolidation. They help clients with the best way that they can pay off their debts. They also help their clients create and control a budget. The aim is to pay off debts that are owed and pay off the low monthly payments as soon as possible. The client is exempt from making higher payments from loans that have high interest.

As long as this is done with the practical and Biblical principles in mind, the client will learn to manage their finances and alleviate stress. They can stick to proven strategies that will work for them and successfully get them out of debt. There are different programs available for those that are looking at Christian debt consolidation.

As their debts decrease, clients start to feel at ease. It’s a great feeling to know that progress is being made with eliminating debts that have been festering for years. With Christian debt consolidation, the organizations can also provide clients with counseling and spiritual wisdom in order to continue to manage their money. Their counsel and wisdom is based on Biblical principles and practical action in order to stay out of debt.

As far as the client’s health is concerned, they can become stress-free as they work to pay off their debts in a timely manner. The whole purpose of Christian debt consolidation is so that clients can be and stay financially free. It is important that they adhere to the strategies and principles (spiritual, biblical and practical) in order to stay out of debt. For their part, this will take willpower, discipline and a strong belief in God that it can happen.

3 Ways To Get Out Of Debt

How Get Out Of Debt!

First, and my personal favorite is lite it on fire and watch it melt. But there are other ways to keep from becoming and American debt statistic.

1. Just go 1 day without your cards. Carry enough cash to get you through the day. If you make it, then try for another day. The whole “one day at a time” thing is cliche, but it does work. If you see something you “need”, commit to waiting at least two days before you finally buy it. If you still “need” it after two days, buy it with cash only. What? you don’t have the cash? Dont’t buy it!

3. Just stop using your credit cards!
This is probably a little redundant, but spending with a credit card is an addiction. We as a society are addicted to credit card debt. Cut up the cards, let a trusted friend hold them. Just leave them at home when you go out, carry only cash.

3. Establish a preset amount to spend before you go to the store. If you set your spending limit at $50 dollars, and you buy a new pair of shoes for $35 - you can only spend another $15.

You really have to commit to this. But building up a few techniques like this can get you on the road to being debt free before you know it.

Debt Consolidation Loan Warnings

There are a lot of lenders who work with individuals with no so perfect credit.  I don’t generally recommend debt consolidation loans because they are so often improperly used.  But for some, they are a good way out of a tight bind.  Many debt consolidation lenders have rules that are less stringent than a bank.

You should not expect to fill out the short form.  Along with being completely candid about all of your finances, assets and income - you will probably also have to provide a complete and extensive balance sheet itemizing all of your income and expenses. 

Just like a mortgage, the one piece of advice that I can give you is that the loan guy doesnt care.  He doesn’t care whether you stop paying six months from now or not.  He doesn’t care whether the interest rate or payment will increase to more than you can handle.  He doesn’t care about the impact that the loan will have on your life.  You see, he gets his commission when the loan closes, and thats the last time he will have to think about you.

So, what is the advice.  KNOW THE TERMS, KNOW THE TERMS, KNOW THE TERMS.   Read the fine print. Don’t rely on the explanation of the guy at the bank, the friendly smiling putz on the other side of the table.  He may genuinly be a nice guy.  But ultimately you’re the one who will be in touble if the terms change and you can no longer meet your obligation. 

Make sure that you know whether the loan is a fixed rate or adjustable.  What is the interest rate and payment for the entire term of the loan?  If it is adjustable, when will it adjust?  Is the payment just a teaser, and if so, when will it go up? - and by how much?  How long is the loan?  Will you pay any points?  Is there a balloon payment?

It’s great get some relief from credit card debt.  But make sure  your not making a bigger problem for yourself.

Are You Winning Your War On Debt

Quick, how many credit cards are in your purse or wallet? If it’s more than 2, we need to talk.

In order to be victorious, you really need to reduce the number of cards that you carry and use. Preferably, carry just one. Pay the rest off, and then get rid of them. One point I like to get across is that I don’t mean close the accounts. Just cut up the cards. Closing accounts may or may not lower your credit score. But leaving them open when you don’t have the cards definitely won’t do you any damage, and it may do some good.

Stop paying minimum payments. If you are unable to pay more than the minimum, you are already in trouble. You need to make sure that you are constantly working on paying off one of the cards. When it’s paid, cut it up - leaving the account open, until you are down to just one card.

Interest rates aren’t going down any time soon. In fact, it’s more than likely they are on the rise. With rising rates will come higher minimums, and a bigger problem for people who are already struggling with high balances and high payments.

Think about what the credit card company is giving you for using their card. Are you getting reward points, airline miles, cash back. The card company is getting something from you, you better make sure they are giving you something back.

Credit Card Debt Negotiation - Get Sound Advice

Get Sound Advice

By now, you know that credit card debt negotiation is all over the Internet. Before you take the plunge, get sound advice from your local consumer protection offices or the Better Business Bureau. Check if the company offering the debt negotiation service is legitimate. Alternatively, maybe you have a lawyer friend who can help you out or perhaps a quick visit to the public attorney’s office can get you affordable legal help or at least point you to the right direction. Most people don’t like to discuss their debt issues with others but realize, however, that you have better chances at succeeding in credit card debt negotiation if you don’t go at it alone. There are plenty of resources, individuals and groups willing to provide assistance, pro-bono as it were. A little reassurance and support from the right people goes a long way when going through the delicate process of credit card debt negotiation.

Document Everything

By getting all matters pertaining to your ordeal with credit card debt negotiation down in black and white, you stand to gain the upper hand should matters end up in court. There are many creditors as well as unscrupulous debt settlement agencies that would just as soon pull a fast one from underneath you. Keep a telephone log and a diary of all your dealings and negotiations. Your correspondences should all be in writing preferably by registered mail or otherwise signed received by the individual addressed. Keep all receipts from any payments you make.

Observe a Professional Tone

Be civil and formal with all your communications be they by mail, by phone or when in face-to-face meetings. By carrying yourself in a manner worthy of respect, your creditors will most likely acknowledge your sincerity and goodwill. Furthermore, they may recognize that you actually know a thing or two and would not be an easy push-over. Conversely, if you act brash and ill-mannered, there is no way you will gain sympathy nor will you gain favorable terms as you pursue the credit card debt negotiation.

Observe these aspects before and while you are in the middle of a credit card debt negotiation. Whether you pursue the action by your initiative or course it through reputable credit card debt negotiation professionals, the desired outcome you seek may hinge on the kind of support that you have, the amount of documentation you possess and the level of decorum and diplomacy that you exhibit as you deal with your creditors.

Christian Debt Relief: What’s The Difference?

If you have been in search of debt relief off of the Internet, chances are you have come across the term “Christian debt relief,” which seems to convey that it is a completely different order from your garden-variety secular debt relief. Just what exactly is Christian debt relief and what difference does it have, if any, to other debt relief practices available to the US credit consumer?

In terms of semantics, by affixing the word “Christian” the concept of debt relief is then restricted only to those related activities and practices that abides by principles of the Christian faith. It may have been used to differentiate particular organizations in the debt relief industry that operates in a more humane and benevolent manner from those companies that are just out to make a quick buck from the misfortune of others.

Sadly, these opportunistic companies seem to have overrun debt relief services so much so that debt relief is now generally labeled a scam. Even more disturbing is the fact that a lot of these scam debt relief agencies have also misappropriated the term “Christian debt relief” to attract people in search of truly Christian-based solutions from their debt problems.

So how would you be able to tell the difference between a true Christian debt relief service from those that, to borrow a biblical phrase, “come to you in sheep’s clothing, but inwardly they are ravening wolves”?

Church-based Affiliations

If you look at many of the websites offering “Christian debt relief,” there would be those that simply affix the term Christian on just about every applicable webpage on their site with little to no mention of anything else related to the Christian faith. Clearly this is just a ruse to drive web traffic to their site from the thousands of Internet users searching for real Christian debt relief services on the World Wide Web.

However, the more credible Christian debt relief groups plainly, even zealously indicates their church-based affiliations. Most Christian debt relief operators are either non-profit groups funded by religious communities or founded by church-based organizations as part of their ministry and they are not usually keen on hiding that fact. Honesty and transparency are key cornerstones of the Christian faith and true debt relief ministries will provide the relevant background information so that potential clients may easily conduct a check whether or not they are who they say they are.

Emphasis on Financial Stewardship

Christian churches teach financial stewardship, which in essence talks about being responsible with money matters as opposed to greediness, overspending and being in debt. Many Christian debt relief services start off within their respective church communities as simply a stewardship ministry, helping people become financially responsible and educating their congregation to the principles of sacrifice and giving back to others in need. When such ministries grow, some of them crossover to the mainstream and provide the same debt relief services and financial stewardship coaching to those outside their churches.

Thus, the real Christian debt relief programs are geared primarily to teach, train and transform people to become good financial managers. While there are those who may be able to extend some financial assistance from funds culled through their church communities, most Christian debt relief organizations focuses more on counseling and intervention based on Christian stewardship principles.

Debt settlement Companies Examined – part 2

The Reality

The ideal conditions for debt settlement remain unchanged over the years. In simplest terms, the debtor must be in a helpless situation financially speaking in order for credit card companies to consider the request forwarded by debt settlement companies. A thorough financial review would be in order and supporting documents to that effect would have to be furnished.

Aggressive credit card debt settlement companies would brag about their mastery of credit legalese and that they would be able to take on credit giants for certain technicalities in order to reduce your debt. If indeed that is the case then well and good; you may pursue that line of argument. However, only you would truly know if your debts are due to unfair credit practices or simply caused by your own negligence and overspending. In which case, creditors have all the right to file claims against you and an aggressive stance would not merit their sympathy to your plight much less agree to a concession on your debt.

Furthermore, a move towards debt settlement would likely merit a negative mark on your credit score. That is why if it is within your capacity to make ends meet and still pay your credit bills, then by all means do so. Debt settlement is an option to be considered only by those who are willing to give up a good credit rating for several years just to get out of the debt.

Debt settlement companies should reveal these realities to you and not try to hide it behind glossy marketing brochures of empty promises. Furthermore, debt settlement companies should be forthcoming with their fees and not surprise you with hidden charges which may end up more expensive than doing the settlement negotiations on your own.

Dishonest Lenders or Lack Of Personal Responsibility

Did you guys and gals see the Boston Globe article where Dara Duguay, director of Citigroups Office of Financial Education say that high credit card debt is is a major consumer issue. Well, no kidding. According to some of the data out their, credit card debt increased by over 5.5 billion dollars in May 2008 alone. That means that credit card debt is approaching 1 TRILLION dollars. This really represents a major problem for the economy.

The housing market is laying there in a smoldering heap, and I don’t think we have reached the bottom yet. The dollar is falling faster than Lindsey Lohan after a party at Snoop Dogs house. Food prices are rising, gas prices are through the roof. People are not spending real money - they are buying on credit.

Reuters reported that video games took a huge spike in 2008 over 2007. But not surprisingly, that spike came right after the stimulus checks went out. The porn industry also reported a big spike at about the same time. So to avoid their economic woes, people seem to be engaging in some escapist behavior.

People seem to be becoming less and less practical. Engaging in compulsive spending, and disconnecting themselves from rational financial decisions. People are spending more than they earn. I hate to sound a little unsympathetic, but logic tells you that if you make 60k a year, you can’t buy a $600,000 house and a BMW. Unless you live in Miami - I knew guys there that lived in million dollar condos and drove Ferraris and never had a job in there life - but thats an entirely different economy. For most of us, those huge expenses just represent massive amounts of debt, and eventually you have to pay the piper.

People are more and more likely to try to absolve themselves of responsibility by blaming their “bad home loan” on dishonest lenders. And I agree, there are a lot of less than desirable lenders out there. But to the best of my knowledge, they haven’t forced anyone to take a loan that they didn’t agree to.

I guess the moral to this story, is if your going to spend over half a million dollars, you might want figure out how your going to pay it back.

I’ve gotten into a lot of situations in my life where I wanted to blame others.  And without a doubt, others are partially responsible.  But the problem only resolved when I accepted my own involvement, and came up with a solution.   If your reading this, it means that you have gotten to that point in your life and your financial salvation is just around the corner.  Good luck.

I’m interested in your comments and opinions in this area.

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Types of Debt - Secured Debt

Secured debts give the seller or creditor special rights. These are debts where the ownership of the item sold is not transferred entirely to the buyer, but is held as collateral for the debt until the amount owed is paid in full.

If you don’t pay the full amount on a secured debt (your car, house, etc.) the seller or creditor has the right to regain possession and/or title to the property. These transactions are based on written contracts and give the seller the power in the transaction. While there may be some type of court procedure, its really just a formality. If you haven’t paid your mortgage in a few months, the lender will file a foreclosure and take your house. There is no law suit involved. Its just a matter of filing the paperwork.

Because of the contractual nature of these debts, they are not as easy to take care of as unsecured debts. the seller/creditor has little reason to deal or bargain. They are going to get paid, or get their property back.

Types Of Debt - Unsecured Debt

The type of debt is one of the defining factors in how the collection agency collects it. When we talk about debt we are talking about four major catagories.

• Unsecured Debt
• Secured Debt
• Tax Debt
• Judgements

The rights of the debtor AND of the collector are different with each. It also depends a lot on whether the debt was incurred for business or personal use.

An unsecured debt involves nothing but a promise to pay. Credit cards, IOU’s and a “smile and a handshake” all constitute unsecured debt. These are often referred to as “open accounts”. Your utilities and garbage bill are also examples of this type of transaction.

While possession and ownership of the item purchased does belong to the buyer, the seller or creditor retains nothing more than the right to use court action in the even of default. The court action can force the buyer to pay, or return the merchandise.

Sometimes debts are wrongful. The merchandise is faulty or was just not what you expected or wanted. Since you have made a promise to pay, you still owe the money. As in the case of most transactions the rule of the day is “let the buyer beware”.

Even though there are unscrupulous creditors out there, you must accept responsibility for your debt situation. You were not tortured into submission. You willingly accepted the debt. I’m sorry for being so blunt here, but its just the way it is. I’m glad your dealing with the situation now.

The Road Out Of Debt

We are going to talk about this over the next few days.  A lot of the concepts will seem simplistic, but the truth is that the way out of debt is easy to learn.

There are truthfully only about 4 ways to resolve your debt issues.

The first is of course to pay the debt.  If you can come up with some extra cash and pay it all thats the easiest, fastest and best way.  Can you go without something this month, or for the next couple of months and just muster up enough cash to pay off the debt.  If you can’t pay it all, can you pay enough so that the monthly payment becomes manageable?  If not, there is the second way.

You can just walk away.  If your judgment proof (meaning you have no assets or income), and you don’t care about your credit report (which is probably already damaged) or your reputation, there isn’t much a creditor can do.

You can declare bankruptcy.  This is the cleanest way to make a break really.  The debt will be discharged in the bankruptcy, and your finished.  Of course the damage to your credit will be nearly impossible to repair.  It will remain with you for at least 10 years.

Finally you can  negotiate.  This is the way that I advocate.  The way that I have found as the method that produces the best solution, that is the easiest to recover from.  You can reduce the crushing burden of debt, negotiate a settlement, pay the debt and even get your creditors to help you recover your financial and credit rating.

How To Get Out Of Credit Card Debt

How To Get Out Of Credit Card Debt

It’s pretty painless to get into credit card debt, attempting to get out isn’t quite so simple But it is important to find out how to get out of credit card debt so that you can keep the condition from getting worse and so that you will have the skills to avoid the problem in the future.Knowing how exactly how to get out of credit card debt can not only help you, but also help others, as you will be able to offer friends and family advice. Knowledge is always power and it is something that will stay with you forever.

A good starting point is to see where exactly your finances are and what you can afford. You will need to make sure your income is high enough and your expenses are low enough that you can make your payments, and pay more than the minimum balances on your credit cards to get them paid off. Once you go over your budget, you may find that the minimum is all you can pay. But the fact is that this is important stuff. If you don’t make enough, consider getting another job, a second job or starting a business to increase your income. If that isn’t possible because of time constraints, you may have to whip out the budget knife and start cutting. You will probably want to do a little of both!

Where To Get Help

Professional advice is available. If you look at the situation and determine that you just can’t go it alone, there is help out there. Consumer credit counseling services can sometimes be helpful. This area of the marketplace seems to be wrought with fraud, so use some caution. The service should be non-profit. Ask them for a list of references, and make sure you actually contact the references. Contact the Better Business Bureau to check for complaints against the business. These companies will take a long hard look at your current financial situation and your previous payment history in order to set up the best plan of action for you and your individual needs.

There are repayment plans that can be negotiated with the credit lenders if you know exactly what to ask for. Consolidation loans are another option. Probably not the best option as they encourage you to take on more debt to get rid of old debt. And since there isn’t any guarantee that the old debt won’t return (unless you destroy the credit cards) you may end up with a bigger problem down the road.The fact of the matter is that you must keep an open mind and be willing to listen to the ideas of others or you will never get out of credit card debt. Read, learn and stick with your program. Don’t get overly discouraged. If you’re persistent, you will achieve your goal of getting out of credit card debt.

Intermediating Debts with Credit Card Debt Collection Training

The vast majority of people in the U.S. and in the western world use credit cards, sometimes as their primary way of purchasing things in the store. As the net gains ground as the primary place purchases are made, it becomes easier to use credit cards to make purchases. When people use credit cards, they’re essentially taking out a loan from their credit card company, with the agreement that they will repay the amount. However, what does the credit card company do if they are not paid quickly, or at all? To make sure that the credit card companies get their money, there is education available in the art of credit card debt collection.

Some Thoughts About Collectors Are Unfounded

Many people make the assumption that training for credit card debt collection will make you less friendly than before. They see debt collectors as harassers of the common people as is popularized on commercials with people dreading telephone calls because they “know” that the phone call will be from a debt collector. On the contrary though, credit card debt collection training is favored by many people much more than putting the pressure on credit companies, who often put pressure on folks who haven’t paid off credit balances to pay off the debt.

Essentially, credit card debt collection training allows you to reach out to individuals in debt in a much more personal way than credit companies can hope to achieve. While you’d be working with credit companies to get their loans repaid, you could also help the public by working with them to get their debts paid. You would also have the chance to prevent lawsuits and to play a diplomatic roll in disputes between creditors and debtors.  Lawsuits are expensive, and no one really wins.  They cost the creditor money and place additional undue burdens on the people who owe the money.  You can help reduce some of this stress through your credit card debt collection training.

With credit card debt collection training, you can helpkeep this from happening by being friendly with customersand trying to work out fair deals which see the credit companies get the money they’re owed while making sure that the customers are able to pay off their debts. Without debt collectors, some individuals may make the decision to simply not pay what they owe from credit companies, a