Walk Away From DEBT TODAY!

Spot on there ED!.....And one more thing. .. Everything takes WORK!

Read this interesting ABC news story as well;

ABC News: Beware of Credit Repair

Best!

DIY debt consolidation works like this (debt consolidation companies do it the same way). (ask me how I know )


1. Stop paying your credit cards entirely. (unless you want to keep one open because all the rest will be closed, sometimes even ones in good standing get closed when you consolidate debt)
2. Set up a Trust Account
3. Pay your trust account instead of credit cards - Set up a payment that is affordable, but strict.
4. Accumulate money over time.
5. Deal with them calling you... because they will.
- disconnect your phone and get a magic jack for 19.95 a year if you don't want to hear from them.
- Inform them that your cell phone (if they have it, if they don't never give it) is a WORK phone.
6. When you have a decent chunk of change, (about 25% of one card), call the card and tell them you wish to settle for $X.
7. If they accept, do it. If not, keep paying the trust account. DO NOT SIGN ON WITH THEM TO CONSOLIDATE.
8. Repeat until all cards are paid off for a fraction of actual debt.


*Pay 1 card off at a time, for as little as they'll accept.
*Realize that your credit will be absolutely shot.
*Learn to manage your money better
*Pay for credit repair once the bleeding is done.


Trust me when I say it's possible to pay your cards off for as little as 15% of your balance.


This should allow most anyone to get out of debt within 36-48 months.




Also, interesting little tid bit of info:

For a borrower that maintains an average of $1000 on their Visa card over 1 year (so, you charge 1000, pay 250, charge 250, etc) Visa will make roughly $3100 on you maintaining that 1000 balance. NOT just in interest that you pay... but in merchant fees along with a few other nifty tricks they have.

Yeah its one of those things that intrigues me because I have done research into the legal methods of this before. Things and processes are very different from one country to the next.

He says he provides all the letters, so I am assuming it means communicating with the creditors, and he also says it has nothing to do with bankruptcy, insolvency or vuluntary administration.

I always have a problem with things that cost this much to find out more. I heard today on the news that numbers of people looking for "quick riches" and fast ways to make money, are on a serious increase, obviously due to the nature of the market. Makes me wonder how much money this guy is making in non-refunable sales.

Even if it is BANKRUPTCY it is deception, illegal, and even its execution may be illegal!

A LOT of people DO know about bankruptcy. How could an adult, at least in the US, NOT know about it! Companies here advertise it like it is a secret(WRONG, and not stating it is bankruptcy IS deceptive), and that it will eradicate debts by getting the credit card companies to reduce their ridiculous terms(WRONG). NOW, that so many know about the deception, they are saying things like it won't hurt your credit(WRONG)!

AND, though most credit card companies ARE american, and DO follow some laws, etc... I am of the understanding that they eventually give 100% control to the issuing bank. AND, though there ARE country laws, they don't necessarily follow them, at least in the US. Further, their rules vary GREATLY!

So BE CAREFUL with ANYTHING you hear!

BTW, in the US, I don't know if anyone REALLY offers a low interest rate! The lower the rate they offer, the greater the chance for a transaction fee, membership fee, reduced grace period, increased "default rate", etc.... So they get someone in at 4%, and the FIRST late payment may reset it to 30%! So WATCH IT! CHASE now often offers TWO rates on their transfers. The lower ones have a higher transfer rate. It may be like 5% at 0% and .90% at 3%! So if you pay it off in one month, and it is $1000, the 5% costs $1000, and the .9% costs $1030! Don't forget what happened with subprime mortgages!

Steve

Hi Floyd,

I wish it were that simple because if it were then the initial promotional material is simply deceptive and misleading. It clearly states "not bankruptcy" and I can't see how it can be if what he professes in that it is "legal in every country" is actually so.

I understand that the laws in US are quite severe when it comes to bankruptcy, and that the impact can be one of everlasting negativity. Here though, the law is not that tough on it. In fact up until about 2 or 3 years ago, it was even possible to be discharged from bankruptcy after just 6 months, as long as you met 3 or 4 very simple conditions. These were related to your income/debt ratio, the total amount of debt, and a couple of other items.

Whats more, I truly believe that after this global mess we are now faced withm the stigma and laws associated with bankruptcy, will have to be reduced in their severity, because a lot of people (as mentioned earlier) are in this position through actions of others, and not entirey their own doing. I know the stigma has already been lessened, the laws will be next.

ROFL! Love it......

Hi Scott,

It is amazing what good branding can do. As soon as I saw the surname "Ransay" I immediately thought of Gordon Ramsay, lol.

Anyway yes this guy seems to have the 'real' data avaiable for bankruptcy in the states, and this is what the fundamental difference is. It is information based on American laws, and does not apply to other countries necessarily.

As an example, here a person can pay $330 to a bankruptcy specialist and effectively be bankrupt within a week. When a person declares bankruptcy, they are "entitled" to certain and very specific protection.

1. No more contact from any listed creditors
2. No creditor payments on NET income of $750 per week allowable
3. 50% creditor payments on any income in excess of the $750 net
4. You can keep any vehicle valued at up to $6,000
5. You can keep almost all household goods (unless you have say multiple items of the same type)
6. You are automatically discharged after 3 years
7. Your credit file can only reflect the bankruptcy for 7 years
8. No compensation payments, or inheritences can be claimed by creditors
9. In certain circumstances you even get to keep your home (especially when children are involved)
10. You do not have to divulge your status to your employer
11. You can still be self employed (in a sole trader category)
12. You can still apply for loans up to $3000 without disclosing your bankruptcy.

and there are more. So you can see that the laws pertaining to bankruptcy vary greatly between one country and another, and here it is quite an attractive propostiion for someone continually hounded by debt collectors, and living with the day to day stress of debt.

Dave Ramsay states that going bankrupt is listed in the Top 5, most stressful things in life, and I would agree with that, but living with the constant harassment and threats from commission based collectors is not listed, and from personal experience I would say that this has to be one of the most stressful factors of life. It infiltrates every aspect of your life. They chase you at home, work, through the mail, over the phone, everywhere.

A person I was once in communication with on this issue, said this...

"People have to stop worrying about what other people think of the bankruptcy, and remember that bankruptcy in any country, was put in place to protect the person going bankrupt"

In the worst cases debt causes massive depression and even suicide. This is far worse than any consequences of bankruptcy (imo).

Good read though, I will enjoy reading more about Dave Ramsay has to offer. I am sure he and other like him are becoming very busy people.

Basically, in a nutshell, the system requires you to:

- Increase your income by a prescribed percentage
- Reduce your expenses by a prescribed percentage
- Cut up your cards, all of them
- Negotiate with creditors for reduced payments/interest rates
- Rank your debts according to a formula
- Pay only the minimum on all your accounts

Then, you combine the monies from the increased income and the decreased expenses and pay ALL of that toward debt #1 on your list. As soon as that is paid off, you do the same to debt #2, and so on.

Each time you pay off one of those debts, the amount you apply to the next one increases. You start slow, but over time the thing accelerates dramatically.

Anyhow, that's an old-school debt elimination system that's been around for years and years. It ain't magic and it takes hard work, but it is effective.

You can't really do credit repair yourself without first doing a lot of research . You could make things worse.

For example:
If you send a validation letter and the creditor cannot verify the debt but simply validates the collection amounts and your contact information and you do not reject that you have just allowed them to validate a debt that is likely to be uncollectable.

For example if you contact a creditor to negotiate a debt you could be validating that debt.

If you contact a creditor with a "good will" letter to remove latenesses from your account unless you word it correctly they could interpret it as a validation request. This could add a second entry into your credit report and prohibit you from ever getting the lateness removed.

It should be noted that the forgiven debt amount becomes income and has to be included as such on your tax return. This is important to note becasue you'll want to retain funds to pay your increased tax liability at the end of the year.

It's interesting to me that someone who's been here long enough to know better bumped this thread though provided nothing new.

Of course it's a hot niche...just like "Make $2000 this week with no work"

And about as believable.

But some people always believe it when you tell them what they want to hear.

kay

This is not a secret but while searching online I got this post in the google, I checked this out give my remarks, then I don't know what happened and this older post increased its weight more than it were leaved last year. Now you can't say its an outdated post because people have amended it with the changes took place according to today's debt market.