It’s been reported that outstanding credit card debt is standing at about $696 billion dollars. Thanks largely to industry lenders that have extended their numerous offers to people with less than perfect credit or with questionable abilities to repay the charges.

Many credit cards are coming with penalty rates above 30%, even if the individual is late on just one credit card payment. That payment might not have even been owed to that credit card company to trigger the higher rates.

Several months ago, credit card companies raised their minimum payment requirements from an average of 2% to 4%.

There are about 45 million people in the United States without health insurance or that are underinsured. 41% of moderate to middle income adults don’t have adequate health insurance coverage.

Homebuilder sentiment slumped to an 11-year low in May …continue reading the article titled America’s perfect financial storm

Studies have shown that when you use credit cards to make a purchase, you purchase approximately 167% more than if you used cash. Even when using a debit card or check, you will spend approximately 82% more simply because of the ease of purchase.

I’ll prove it to you. Next time you go to your local Target, Wal-Mart, Costco, grocery store, etc. bring a specific amount of cash with you for the items that you went to the store to purchase. When you are going to check out, how many additional items (impulse buying) would you have added to your cart? That’s right. None.

However, go back the next week or month using your credit, debit card or check book and see how many additional items you come out with.

If you find yourself making a lot of impulse purchases and feel like your spending is out of control, than begin shopping with cash only. This self-policing prevents or minimized the number of impulse purchase you make. You can even use that money to get out of debt quicker.

To learn more about your options and managing you debt, log onto www.debtreliefoptions.com.

Jon Noble
Staff writer
Debt Relief Options
asktheexperts@debtreliefoptions.com

The true cost of our Financial Decisions

Most of us have never been taught the long-term cost of our financial decisions. When we make a decision to purchase something today, we are giving up the value of that purchase in the future.

By making that financial decision to spend just five dollars once a week for a cup of coffee at your local coffee shop, over a forty-year business career can have some serious future financial implications.

If you had invested just that little $5, once a week, you would have accumulated approximately $137,000 of future capital at age 65. With the average net worth of a person 65 or older being just about $20,000 (excluding any equity in a home), do you think that that extra $137,000 would have made a difference in their retirement?

Did you know that the median net worth of all American adults under the age of 35 is just $7,240? Are you one of them?

To learn more about your options and managing you debt, log onto www.debtreliefoptions.com.

Jon Noble
Staff writer
Debt Relief Options
asktheexperts@debtreliefoptions.com

Many people have asked about the new Bankruptcy Law changes and how they would affect someone thinking about filing. The short answer: It will cost you more time and money in connection with the filing of a case, but that’s about it.

Here is a brief overview about Bankruptcy and the new law changes:

For the average consumer there are basically two types of Bankruptcies that are available to them. A Chapter 7 (straight Bankruptcy or referred to as a liquidation) and a Chapter 13 (often referred to as a reorganization). Below is a general overview and is not intended as legal advice. You should always consult with an attorney prior to making any type of legal decision. Filing for Bankruptcy is never pleasant and should always be considered as a last resort. Although your credit profile will be affected for 10 years, there are programs out there that are specifically designed to assist a post-discharged consumer with restoring and rebuilding his or her credit profile. Your attorney can discuss this as well as other options with you. Make sure they are in good standing with their Local Bar Association and shop around. Price isn’t as important as comfort in my opinion.

Chapter 7 bankruptcy is designed for …continue reading the article titled New Bankruptcy Law changes –

Hey, don’t just take my word for it.

Let’s face it we all know that the only one that is going to get you out of debt is you. There are several ways to do it. Most think that Debt Settlement (third party negotiations) can’t be done or that credit card companies don’t recognize this as a legitimate solution.

That is simply not true. Did you know that even MasterCard recognizes debt settlement as a legitimate option for individuals looking for help with their credit card debt?

If you go to their website or simply follow this link to read what they have to say about debt settlement: http://www.mastercard.com/us/personal/en/securityandbasics/debtknowhow/payoffyourdebt/index.html

Most people don’t understand all of their options. …continue reading the article titled Debt Settlement is a recognized solution for those who need help with their debt.

Read the entire article to understand why.

For over 8 years, congressional backers, banks and credit card companies pushed to get bankruptcy reform on the books. Who has this really helped?

Last year the new law went into effect. The pushers of this law said it was needed to help curb the massive abuse of people who filed for Chapter 7 bankruptcy as a way to simply walk away from their debt. Opponents said the changes would be especially hard on low-income working people, single mothers, minorities and the elderly and would remove a safety net for those who have lost their jobs or face mounting medical bills.

The law bars those with above-average income from Chapter 7 — where debts can be wiped out entirely — except under special circumstances. Those deemed by a new “means test” to have at least $100 a month left over after paying certain debts and expenses must file instead a 5-year repayment plan under the more restrictive Chapter 13.

In addition to this “means test”, an individual wishing to file for relief under Chapter 7 must first seek credit counseling services and receive a certificate of insolvency.

Basically, anyone seeking to file a Chapter 7 bankruptcy has to go to a credit counseling service that interviews the individual and conducts an analysis of their overall financial situation to determine if they truly can’t afford to pay back their debts.

As you well know, the credit counseling industry is funded by the credit card companies. How convenient. Fortunately, …continue reading the article titled If you find that you are in financial trouble, look at debt settlement as your first option.

A recent study by lawyers.com showed that nearly half of all Americans do not have enough in savings to live for three months if faced with an unexpected job loss or medical emergency.

For those people earning 35k or less, 19% of them said that they had no liquid savings, compared to only 4 percent of those who earned more than the 35k a year.

In addition, those who actually have some savings are increasingly more likely to spend it on daily living expenses, instead of paying down or eliminating their debts.

Of those people with savings, about 27% reported that their last savings withdrawal of $100 or more was to cover normal living expenses, while only 16% used it to pay off debt.

The survey shows that any change in gas prices, for example, or in any other market (an increase in interest rates from their adjustable mortgage, the new minimum credit card payment requirements with most credit card companies) can devastate those consumers financially.

If you find yourself scrambling to make ends meet or just want to learn more about your financial options, log onto www.debtreliefoptions.com.

Jon Noble
Staff writer
Debt Relief Options
asktheexperts@debtreliefoptions.com

In February, Maine became the twelfth State to pass legislation that allows consumers to freeze their credit information. This program has been floating under the radar for quite some time and I think that if more consumers were aware of it, they would be flocking in droves to sign up.

I know that I wrote eight States and reference Maine becoming the twelfth. There is a reason for this. But first, let me explain about the program. OK fine. For those of you that are impatient, 8 States allow any consumer to participate in freezing their account. The other 4 States and potentially on a National level, you must be a victim of identity theft before you can protect yourself in the future.

California was the first State to pass this type of law back in 2003. The vast majority of Californians have not signed on because they don’t know about it.

Here is the reason behind the law and how it works:

Nearly 10 million Americans fall victim each year to identity theft. Current statistics show that a victim will spend an average of 330 hours resolving problems as a result of identity theft and paid between $851 and $1378 in out of pocket expenses (excluding a median of $4000 per victim in lost wages in 2004).

Identity theft also costs U.S. …continue reading the article titled Freeze your credit, well in eight States anyway…….

Dear Mr. Smith, thank you for your response to my offer. You are approved and here is your money! Oh yah, here is what you agreed to by accepting such a generous offer made by me and my distinguished associates.

1. You can’t sue me or be included in any class action law suit against me.

2. If you miss a payment to someone else that you owe money to, even if you’ve made all of your payments to me on time, I can charge you a higher interest rate for that.

3. I can change the terms of our agreement, anytime that I want to.

4. If you pay back all the money that you owe me, I can charge you an additional fee for that.

5. If you pay me back and you continue to not owe me money anymore, I can charge you a fee for that.

Being a “Shylock” with these terms and conditions….Illegal

Being a Credit Card company with these terms and conditions and having Congress in your back pocket….Priceless

Plain and simple. Over the past 15 years that I have been in the debt and credit industry, I have read countless articles and have met with thousands of people effected by the credit card industry that I am litterally sick and tired it. The credit card industry has been set up to take advantage of uneducated people who have been barraged day after day with ads and offers telling them that without credit, they can’t live like they should be. “Life takes Visa. You live life, we’ll help you” or some moronic statement like that I keep seeing while watching this year’s Olympics. Actually, I get to watch about 10 minutes of Olympic coverage and get to spend the next 5 minutes watching stupid pitches like this.

In this article, I am going to go over some real facts that are in these credit card company contracts and hopefully someone out there will see that this is one of the most underhanded, unregulated, profit mongering businesses out there today.

Here is some “did you know” that hopefully get’s you as angry as I am. Now on a positive note, so we don’t hurt some people’s feelings out there, credit cards are a tool that if used correctly can give you some advantages. Yah, about 5% of the American population falls into that category.

1. Chase Manhattan Bank’s cardholder agreement plainly and clearly makes you agree to give up your right to sue them: “the cardholder cannot take the issuer to court or be included in a class-action suit against the company.”

Wow, the tobacco companies should have had these lawyers on their team…Hmm, let’s see. Sorry Mr. Jones, it clearly states on the underside of the cigarette pack that you purchased, in size 3 font: “By purchasing these cigarettes, you agree that you cannot take the manufacturer of these cigarettes to court or be included in a class-action suit against the company.” I guess that was their big mistake. The warning label only states that you could die, it didn’t say anything about not being able to sue them….

2. Banks and credit card issuers spent millions, yes millions, of dollars lobbying Congress …continue reading the article titled Credit Card Companies are “Shylocks”

Consumer Credit Counseling companies are not always what they advertise to be. Be sure to check out the company and all of your options before enrolling into any type of Credit Counseling Service.

A Massachusetts credit counseling agency and its two owners must pay $4.2 million in penalties and consumer restitution to settle allegations that it misled thousands of consumers and funneled millions of dollars to related for-profit companies.

The consent judgment resolves a lawsuit filed by Massachusetts Attorney General Tom Reilly in April 2004. The suit charged that owners John and Richard Puccio violated Massachusetts charities laws by using Cambridge Credit Counseling to funnel millions of dollars to for-profit companies that they also owned.

The state also alleges that the company violated consumer protection laws by misleading thousands of consumers about the benefits of credit counseling offered by Cambridge Credit.

Under the consent judgment, both Cambridge Credit and the Puccio brothers will pay civil penalties and restitution to consumers.
The Puccios will pay a total of $2 million to the Commonwealth - including a $500,000 civil penalty, $500,000 restitution to consumers, and an additional $1 million in disgorgement of ill gotten gains from the charity.

Cambridge will pay $2.2 million — a $500,000 civil penalty and $1.7 million in restitution to consumers. The Puccios also are permanently barred from working with Cambridge, contracting with the charity, or receiving any money from the charity.

“What is clear is that the owners set up this charity primarily to enrich themselves …continue reading the article titled Non-For-Profit, not always the case