Non-Profit Budget Counseling

FREEDOM DEBT MANAGEMENT, INC. AND CITI GROUP EXPAND HOME-OWNERSHIP OPPORTUNITIES IN SOUTH FLORIDA

2010-09-28T11:45:00.000-04:00

Boca Raton, FL. – A homebuyer education program, appropriately titled “Realizing the American Dream,” will be offered by Freedom Debt Management in Boca Raton to assist South Florida residents. Homebuyer education teaches participants the concepts of money management, understanding credit, getting a mortgage loan and more through a series of two 4 hour courses. The first class is scheduled for Wednesday, October 13, 2010 at the 941A Clint Moore Road in Boca Raton from 5:30 p.m. to 9:00 p.m.

Freedom Debt Management, Inc., a non-profit, has partnered with Citi Group to offer the program due to a lack of consistent 8 hour homebuyer education programs in the South Palm Beach County area. The program is aimed to put up to 100 families on the road to homeownership in its first operating year.

“We are very pleased to introduce this program to our community,” said Darish Still, Director of Counseling with Freedom. “Our program is designed to enhance our participants’ concepts of budgeting and saving as well as alert them to the many scams and credit traps that can threaten their financial future. Strong financial skills can lead our residents to be able to buy homes, be prepared for financial emergencies, and be more comfortable in retirement, which leads to a stronger and healthier community. We are here to help our residents get their financial future in shape!”

Through the classes, participants will learn to manage their financial resources more effectively and make wiser financial decisions. Class topics will include mortgage affordability, money management, understanding credit, getting a mortgage loan, shopping for a home, and keeping your home and managing finances.

The program is being offered at a low cost to interested participants in Palm Beach and Broward counties as a result of financial support provided by Citi Group.

Freedom Debt Management is a non-profit organization dedicated to counseling consumers regarding homeownership and the challenges of effective credit and money management.

For more information on this program, please contact Darish Still at (561) 362-3011

How Debt Consolidation Can Build Your Credit

2010-09-02T16:12:00.000-04:00

The debt management industry and the services within can be easily confused. While some consumers think debt management programs hurt credit there are some plans that can actually improve credit while enrolled. Primarily, it depends on the status of your accounts upon entering a program and selecting the program that best suits your current financial situation and long term credit goals. A debt consolidation plan makes payments each month as received from the client, helping improve the score over time. A debt settlement plan, often confused for consolidation, places accounts in a charged off status to enable balance negotiations. The only problem with a settlement plan is that the accounts have to first charge off before negotiating a lower balance pay off. Once an account charges off though, it remains as a negative on your credit for 7 years- paid in full or not. That’s only 3 years less bad credit than filing bankrupt.

Debt consolidation- not debt settlement- can help improve your credit score over time while paying back the debt. Accounts may be reported to the credit bureau as ‘being paid by a third party’. This notation does not affect your actual numeric credit score negatively or positively. It doesn’t hurt your credit rating in any way, shape, or form. At the end of the day, creditors and the credit bureau do not care who or how your payments are made, long as they’re made on time and consecutively each and every billing cycle. A debt consolidation plan makes the payments to creditors every month as payments are received from their clients. The due dates are renegotiated along with the other terms to ensure payments are considered timely and report positively, improving the score.

Making payments on time is the biggest factor in what affects your credit rating on a regular basis. 35% of your score is made up of timely monthly payments each billing cycle. In a consolidation plan, the due date is changed to coincide with a time that better fits your other monthly obligations and pay schedule and ensures timely payments right from the start of enrollment.

Did you know? Spending more than 30% of your available balance lowers your credit score? That means if you have a credit line of $5k, keeping a balance of more than $1500 is negatively impacting your credit. 30% of your credit score accounts for how much total outstanding debt you owe. These accounts may be being paid on time every month but if the balance is above 30% of the credit line the payments aren’t helping as much as they could.

Standard minimum monthly payments are designed to pay off 1% of the balance with every minimum monthly payment. That means if you stop spending on your account it could take around 100 minimum monthly payments to pay back your total debt at the standard rates, or 8.3 years. In a debt consolidation plan the interest rates are reduced to lower fixed rates, usually in the single digits. This allows the consumer to have the majority of the payment apply to the balance instead of the interest, bringing the balances down much faster- lowering your overall debt amount at an accelerated rate.

Standard rates and terms issued by big banks direct to consumers are set at a rate that would take over 8 years to payback with minimum monthly payments. In a debt consolidation plan, the minimum monthly payment requirement coincides with the interest reductions in an effort to get the consumer out of debt in 5 years or less, applying the majority of your minimum monthly payment to the principle balance not the interest fees.

You can still obtain new lines of credit while consolidating you debt. It’s not ideal….as the point is to get OUT of debt not incur more- but you can nonetheless. Not every account has to be consolidated either. Dent consolidation is not an all or nothing deal. Pick and choose which creditors are charging you too much in interest and only consolidate those accounts. You can always add or remove accounts from a consolidation plan at a later time without being charged anything additional.

One lower monthly payment. Lower fixed interest rates. No late fees. No creditor calls. Improving credit on a monthly basis. Debt free in 5 years or less. For more free information or a free financial consultation contact a certified credit counselor at a nonprofit debt consolidation organization accredited by the Better Business Bureau. Call 800-905-1563 or visit our website freedomdm.org and complete our contact request form or LIVE CHAT with a counselor during business hours. Freedom Debt Management is a BBB accredited A+ nonprofit organization helping people become debt free one household at a time. You can be debt free, Freedom Debt Management can help.

Bernanke: Shut Down Banks If They Threaten System

2010-09-02T12:40:00.000-04:00

*image courtesy of deesillustration.com

By MARCY GORDON, AP Business Writer Marcy Gordon, Ap Business Writer – 6 mins ago

WASHINGTON – Federal Reserve Chairman Ben Bernanke told a panel investigating the financial crisis that regulators must be ready to shutter the largest institutions if they threaten to bring down the financial system.

"If the crisis has a single lesson, it is that the too-big-to-fail problem must be solved," Bernanke said Thursday while testifying before the Financial Crisis Inquiry Commission.

Full story on yahoo news

Plunging Home Sales Could Sink Recovery

2010-08-26T08:59:00.000-04:00

By Hibah Yousuf, staff reporter August 24, 2010: 4:03 PM ET

NEW YORK (CNNMoney.com) -- With home sales plunging to their lowest level in 15 years, economists warn that a double-dip in housing prices is just around the corner, threatening to further slow the overall recovery

Read the full story on Money.cnn.com

Nonprofit Credit Counseling Services

2010-08-24T14:54:00.000-04:00

Since its opening debut in 1950 credit card debt has been an ongoing problem as consumers began going into debt at an alarming rate. Trapped into unbearable terms and fees the cycle hasn’t changed much since inception. 85% of consumers in America have a household credit debt of $8k or higher, sources say.

Dreams aren’t much different today either. Like days before, the American dream to be debt free still sleeps on as we continue creating more and more debt with little hope to an end nearing of this vicious cycle. Unlike 1950 though, there are many different options available today to consumers who are genuinely tired of economic enslavement and are ready to get out of debt and stay out. Education, patience, and a relearning of behavior are key to success once one becomes debt free, to ensure they stay debt free.

Credit counseling, created by the federal government, was implemented to provide financial counseling services and assistance to consumers interested in exploring alternatives to becoming debt free. More affordable payback plans are established that cater to the consumers ability to pay and a goal of becoming debt free in 5 years or less.

Agencies that are nonprofit, have established strong relations with creditors to provide clients lower interest reductions, lower payments, and freedom from debt in 5 years. The consensus is, a true nonprofit is geared toward assisting consumers in paying back their debt without impaling the consumer with exorbitant fees for services. Nonprofit credit counseling organizations do charge nominal fees to cover administrative costs but most of the counseling service fees are paid by the lender themselves.

A certified credit counselor working for a nonprofit credit counseling agency will first assess your situation in a free financial analysis, outlining your debt to income ratio, assets and liabilities. Once your assessment is complete the counselor can then quote an affordable monthly payback plan that coincides with the creditor guidelines for debt consolidation. As the minimum monthly payment terms are agreed upon creditors then instill program benefits such as the stopping of fees and reduction to interest to lower fixed rates- usually in the single digits. This enables the consumer to payback the debt at a reasonable rate and within a reasonable time frame.

When Do You Need Credit Counseling?

You can’t pay the minimums on your credit cards.

The interest rates are too high and balances aren’t going down.

You want to improve your credit score by lowering your outstanding balances faster.

You’re consistently late paying one or more of your regular bills.

You’re being harassed by creditors and collection calls.

Your efforts to work out reasonable repayment plans with your creditors have failed.

Your accounts have gone more than 6 months past due and legal pursuit has been executed.

Speaking with a certified credit counselor and receiving a free financial analysis of your household budget and credit debt will give you a better idea of what options are available to you that are within your fiscal means. Working with nonprofit credit counseling services can improve credit while eliminating debt in 5 years or less. For more information or a free financial analysis call and speak to a certified credit counselor today. BBB rated A+ nonprofit budget and credit counseling, call 800.905.1563 or visit our website freedomdm.org and LIVE CHAT or complete our contact request form and see what options are available to you. You can be debt free, freedom debt can help.

FDCPA Consumer Rights

2010-08-18T18:03:00.000-04:00

Collection calls can become unruly and unprofessional but they do not have to. Most calls that entail such are usually in violation of your rights under the Fair Debt Collection Practices Act. What you don’t know can hurt you. Take an accounting of these common unlawful tactics that are in direct violation of your consumer rights under the FDCPA.

1. Ask you to pay more than you owe
The collector cannot misrepresent the amount you owe.

2. Ask you to pay interest, fees, or expenses that are not allowed by law
The collector can't add on any extra fees that your original credit or loan agreement doesn't allow.

3. Call repeatedly or continuously
The FDCPA considers repeat calls as harassment.

4. Use obscene, profane, or abusive language
Using this kind of language is considered harassment.

5. Call before 8:00 am or after 9:00 pm
Calls during these times are considered harassment.

6. Call at times the collector knew or should know are inconvenient
Calls at these times are considered harassment.

7. Use or threaten to use violence if you don't pay the debt
Collectors can't threaten violence against you.

8. Threaten action they cannot or will not take
Collectors can't threaten to sue or file charges against you, garnish wages, take property, cause job loss, or ruin your credit when the collector cannot or does not intend to take the action.

9. Illegally inform a third party about your alleged debt
Unless you have expressly given permission, collectors are not allowed to inform anyone about your debt except: Your attorney |The creditor | The creditor's attorney |A credit reporting agency your | spouse | Your parent (if you are a minor)

10. Contact you at work knowing your employer doesn't approve
A collector is not allowed to contact you at work if you’ve let them know your employer doesn’t approve of these calls.

11. Fail to send a written debt validation notice
Within five days of the collector's initial communication, it must send you a notice include the amount of the debt, name of the creditor, and notice of your right to dispute the debt within 30 days.

12. Ignore your written request to verify the debt and continue to collect
A collector can't continue to collect on a debt after you've made a written request to verify the debt as long as the request was made within 30 days of the collector's written notice.

13. Continue to collect on the debt before providing verification
After receiving your written dispute, the collector must stop collecting on the debt until you have received verification.

14. Continue collection attempts after receiving a cease communication notice
If you make a written request for the collector to cease communication, it can only contact you one more time, via mail to let you know one of the following: that further efforts to collect the debt are terminated, that certain actions may be taken by the collector, or that the collector is definitely going to take certain actions.

Repeated violations should be recorded and reported immediately. If you feel you have been a victim of collection harassment call a certified credit counselor for a free financial counseling session and see what options are available for you. You have rights and there are nonprofits out there who will work for you to eliminate collection calls and unscrupulous finance charges and fees. Call 800.905.1563 or visit our website freedomdm.org and LIVE CHAT with a certified credit counselor. You can also complete a contact request form and a certified credit counselor will get back to you within 24 business hours. Our BBB Rated A+ nonprofit counseling services have helped thousands of consumers like you stop collection calls and end creditor harassment. You can be debt free, Freedom Debt can help.

Fannie, Freddie Reform Summit Just First Step

2010-08-16T16:01:00.000-04:00

By Prabha Natarajan    Of DOW JONES NEWSWIRES

NEW YORK (Dow Jones)--Industry leaders will get a chance Tuesday to put forth ideas on how to fix government-owned mortgage finance giants Fannie Mae (FNMA) and Freddie Mac (FMCC) and the broader housing finance system.

Read the full story on Wall Street Journal Online

Credit Debt Relief

2010-08-10T11:18:00.000-04:00

A debt consolidation plan is the consolidation of all unsecured debts into one monthly payment to a third party agency, usually nonprofit. Debt consolidation can eliminate debt while improving your credit with timely monthly payments at reduced fixed interest rates. Learn the inner mechanics of a free counseling session and what debt consultation entails with a nonprofit. The payments are sent out monthly as they are received under modified terms negotiated by your nonprofit credit counseling organization. The modified terms include.

Stopping of collection calls

Stopping of late, past due, and over the limit fees

One lower monthly payment that gets you out of debt in 5 years or less

Reduction of interest rates to one single digit fixed rate

Change of the due date in accordance with your other bills and pay schedule

Bringing past due accounts current without paying anything additional

Keeping accounts reporting positively to help improve your credit score

TIP: If you’re not behind and current a nonprofit debt consolidation plan can keep your accounts current so it does not hurt your credit rating.

TIP: If you’re behind and receiving multiple fees a nonprofit debt consolidation plan stops those immediately after enrollment and brings the accounts to a current status so they start building back your credit score.

TIP: Most consumers are paying 2-3 different interest rates between purchases, cash advances, and balance transfers. A consolidation plan creates ONE low fixed APR, usually in the single digits between 0-9 percent.

A debt consolidation plan will start with a counseling session provided free by a certified credit counselor. These financial counseling sessions usually begin with a budget analysis, covering your debt to income ratio on a monthly basis. This allows both parties to identify where the consumer currently is with their finances and explore available options from there.

TIP: Counselors usually find ways for consumers to save money monthly in their regular bills outside of the consolidation. Ask a certified counselor about insurance packages and utility bundles.

For the debt consolidation quote, a certified counselor will want an accounting of the unsecured debts looking to be consolidated. To provide an accurate savings and payment quote a counselor will need each creditor name, balance, and current interest rates for the accounts consolidating. This allows the counselor to establish an affordable monthly payment within the consumer’s budget that will work with each creditor’s guidelines for minimum monthly payments to be debt free in 5 years or less.

TIP: You do not have to consolidate all your credit card and unsecured debts. You can leave some out as needed.

TIP: There is no minimum debt amount with nonprofits. If they can help you save money they will, regardless of how much debt you have. $10k minimum debt requirements are mostly FOR profit agencies posing as nonprofits and should be reported to the FTC ASAP.

TIP: Nonprofit consolidation plans are designed to get you out of debt in 5 years. A debt consolidation organization should not charge you anything extra or prorate a service charge for paying off the debt earlier than the 5 years planned.

Once a monthly payment amount is established that is affordable for the consumer the counselor will then ask the consumer to select a payment date that works best for them around their pay schedule and monthly bills. This new due date is then negotiated by the org on your behalf to ensure payments are considered on time and continue to help improve credit.

TIP: 35% of your credit score is made up by payment history. This is the largest factor in what affects your numeric credit score.

At this point, you should have had a budget analysis and free debt consolidation quote from your certified counselor. If the savings are there and the payment is affordable it’s then time to finalize paperwork and get those debts consolidated!

Upon entering a debt consolidation program a certified credit counselor will ask you to make one final call to your creditors to cancel any promotional plans, insurance policies, automatic payments and lastly, the closing of the account. Once this has been achieved the debt consolidation org can begin managing your creditors and working with them direct.

Want more information on how a nonprofit debt consolidation plan could work for you? Call and speak to a certified credit counselor today 800.905.1563 or visit our website freedomdm.org and complete our contact request form. You can also LIVE CHAT with a certified credit counselor on our website during business hours. You can be debt free, Freedom Debt can help.

Identity Theft and Credit Fraud On The Rise

2010-08-05T15:43:00.000-04:00

Identity theft is up and running in America. This very popular crime has accelerated as the economy has declined and more people are acting out of desperation on both sides of the fence. With criminals looking for an easy steal deal and consumers applying for more and more credit, the information superhighway is flooded with identity theft opportunities. Here are a few steps you can take to protect your ID.

ONE: Keep your social private. Criminals usually start with a social security number to begin fraudulent activity on your credit dime. Protect your social security number and only provide to trusted sources. Most applications ask for a SSN but its usually not required until final processing.

TWO: Rigorous credit report research. Your credit report has your SSN, present and past employers, and a list of all lines of credit in your name. It’s a field day for theft and criminals have a hall pass to take what they want once they have access to your credit report. There are monitoring services available that provide updates and push notifications anytime your report reflects activities and inquiries. At the very least, please run your credit free once a year to ensure you have not become a victim of identity theft.

THREE: Create no way to paste waste. Old bank statements and credit card offers should be shredded and thrown out. If you can legally have a bonfire in your backyard this could become a monthly event, even a party. Crosscutting also works well if you’re sitting there thinking, yea I’m never going to buy a shredder. Removing yourself from marketing lists will also decrease the amount of junk mail and offers you receive via snail mail that publicize your personal information – making less to cut, shred, or burn.

FOUR: Keeping content close. There’s no need to carry around every single piece of plastic you have. It’s no longer cool to have, like, 20 credit cards- ask Lindsay Lohan. Carry the cards and IDs you need only. Better yet, make photocopies of your ID and credit cards front and back and carry those, leaving the originals at home or in a safe place. Use the copier at the office, they’ll never know.

FIVE: Actually READ your mail. Did you know? Studies show, 95% of Americans today do NOT read their mail or monthly statements?! Always take a good once over of your monthly statements. There may be purchases you didn’t make. JP Morgan may be charging you a fee you didn’t know about. First Premier raised a lot of APRs to 79.9% - could be you, have you checked your statement?

There are nonprofit counseling services that offer free credit report reviews with certified credit counselors. Contact a credit counselor today for a free review of your credit report and see if you have been a victim of identity theft and whats affecting your credit negatively and positively in a free consultation. Nonprofit credit counseling services can improve credit while eliminating debt at lower fixed interest rates. Call 800.905.1563 or visit our website freedomdm.org and LIVE CHAT with a counselor. You can be debt free, Freedom Debt can help.

Economist React to Bernanke Testimony

2010-08-02T13:54:00.000-04:00

Visit msnbc.com for breaking news, world news, and news about the economy

FTC Issues Final Rule to Protect Consumers in Credit Card Debt

2010-07-29T15:43:00.002-04:00

Amendments to Telemarketing Sales Rule Prohibiting Debt Relief Companies From Collecting Advance Fees Will Take Effect in October 2010

Starting on October 27, 2010, for-profit companies that sell debt relief services over the telephone may no longer charge a fee before they settle or reduce a customer’s credit card or other unsecured debt.

“At the FTC we strive every day to make sure America’s middle class families get straight deals for their dollars,” Chairman Jon Leibowitz said. “This rule will stop companies who offer consumers false promises of reducing credit card debts by half or more in exchange for large, up-front fees. Too many of these companies pick the last dollar out of consumers’ pockets – and far from leaving them better off, push them deeper into debt, even bankruptcy.”

Three other Telemarketing Sales Rule provisions to take effect on September 27, 2010, will:

require debt relief companies to make specific disclosures to consumers;
prohibit them from making misrepresentations; an
extend the Telemarketing Sales Rule to cover calls consumers make to these firms in response to debt relief advertising.

The Final Rule covers telemarketers of for-profit debt relief services, including credit counseling, debt settlement, and debt negotiation services. The Final Rule does not cover nonprofit firms, but does cover companies that falsely claim nonprofit status. Over the past decade, the FTC and state enforcers have brought a combined 259 cases to stop deceptive and abusive practices by debt relief providers that have targeted consumers in financial distress.

Advance Fee Ban
The Final Rule contains specific requirements for debt relief providers related to charging an advance fee before providing any services. It specifies that fees for debt relief services may not be collected until:

the debt relief service successfully renegotiates, settles, reduces, or otherwise changes the terms of at least one of the consumer’s debts;
there is a written settlement agreement, debt management plan, or other agreement between the consumer and the creditor, and the consumer has agreed to it; and
the consumer has made at least one payment to the creditor as a result of the agreement negotiated by the debt relief provider.

To ensure that debt relief providers do not front-load their fees if a consumer has enrolled multiple debts in one debt relief program, the Final Rule specifies how debt relief providers can collect their fee for each settled debt. First, the provider’s fee for a single debt must be in proportion to the total fee that would be charged if all of the debts had been settled. Alternatively, if the provider bases its fee on the percentage of what the consumer saves as result of using its services, the percentage charged must be the same for each of the consumer’s debts.

Dedicated Account for Fees and Savings
Another new provision of the Final Rule will allow debt relief companies to require that consumers set aside their fees and savings for payment to creditors in a “dedicated account.” However, providers may only require a dedicated account as long as five conditions are met:

the dedicated account is maintained at an insured financial institution;
the consumer owns the funds (including any interest accrued);
the consumer can withdraw the funds at any time without penalty;
the provider does not own or control or have any affiliation with the company administering the account; and
the provider does not exchange any referral fees with the company administering the account.

Disclosures and Prohibited Misrepresentations
Under the Final Rule, providers will have to make several disclosures when telemarketing their services to consumers. Before the consumer signs up for any debt relief service, providers must disclose fundamental aspects of their services, including how long it will take for consumers to see results, how much it will cost, the negative consequences that could result from using debt relief services, and key information about dedicated accounts if they choose to require them.

The Final Rule also prohibits misrepresentations about any debt relief service, including success rates and whether the provider is a nonprofit entity. The FTC’s Statement of Basis and Purpose, which accompanies the Final Rule, provides extensive guidance about the evidence providers must have to make advertising claims commonly used in selling debt relief services.

The Rulemaking Process
In August 2009, the FTC published in the Federal Register a notice of proposed rulemaking proposing amendments to the Telemarketing Sales Rule and requesting public comments. Over 300 commenters, representing a wide variety of stakeholders, submitted comments in response. The Commission also held a public forum on the proposed amendments on November 4, 2009. The FTC developed the Final Rule based on the public comments, the record of the public forum and the FTC’s September 2008 Workshop on the debt settlement industry, recent testimony before Congress, and law enforcement actions brought by the Commission and the states.

Information for Businesses
Today, the FTC staff issued a compliance guide to help businesses comply with the new debt relief rules. The compliance guide describes the key changes to the Telemarketing Sales Rule affecting debt relief services, helps businesses determine if they are covered by the new rules, details information that covered entities must disclose to customers, and discusses how fees may now be collected. It can be found at http://www.ftc.gov/bcp/edu/pubs/business/marketing/bus72.pdf on the agency’s website and is linked to this press release.

The FTC vote approving publication of the Federal Register notice was 4-1, with Commissioner J. Thomas Rosch voting no. The notice will be published in the Federal Register shortly, and is available now on the FTC’s website at http://www.ftc.gov/os/2010/07/R411001finalrule.pdf. The provisions of the Final Rule will take effect on September 27, with the exception of the advance fee ban provision, which will take effect on October 27.

The FTC works for the consumer to prevent fraudulent, deceptive, and unfair business practices and to provide information to help spot, stop, and avoid them. To file a complaint in English or Spanish, click: http://www.ftc.gov/ftc/complaint.shtm or call 1-877-382-4357. The FTC enters Internet, telemarketing, identity theft, and other fraud-related complaints into Consumer Sentinel, a secure, online database available to more than 1,800 civil and criminal law enforcement agencies in the U.S. and abroad. For free information on a variety of consumer topics, click http://ftc.gov/bcp/consumer.shtm.

MEDIA CONTACT:: Mitchell J. Katz, Office of Public Affairs 202-326-2161
STAFF CONTACT:: Alice Hrdy, Allison Brown, or Evan Zullow, Bureau of Consumer Protection 202-326-3224

(FTC File No. R411001)
(Debt Services.final)

Combat Collector Collection Calls Five Tips

2010-07-26T15:52:00.000-04:00

In our last article we provided insider information and training tips collection agencies are using against delinquent consumers to collect on debts. Here, we’re going to give you some ammunition of your own to combat collectors.

Let’s first identify who our collectors are. Chances are the collector behind the dial tone is working off an auto dialer. This means their computer has a list of debtors and every time the line disconnects the computer automatically dials another debtor. While that call is being processed the collection agent reads over the basic information regarding the debtor and debt in question. Collectors are very aggressive for one reason and one reason only. MONEY. Most collection agencies employ entry level customer service reps for minimum wage and offer a commission incentive for any payment they get over the phone. Its life or death for most collectors who are dependent on earning commissions from collection efforts.

One: Avoid collection all together. If you’re falling behind you can be proactive and give your creditor a heads up. An account usually isn’t sold to a collection agency until multiple consecutive payment shave been missed. Call you creditor in the first month of being late and see if you can make internal arrangements until the account is current again.

Two: Know your rights. The United States Federal Trade Commission has published several articles designed to educate consumers about their rights against collection harassment under the FDCPA, or Fair Debt Collections Practices Act. Get updated on your rights under the FDCPA and you’d be surprised how may collection agencies are violating your rights. Harassing phone calls, threats, and abusive language are illegal and should be reported to the FTC and your State Attorney General’s office immediately with as much detail as possible regarding the instance.

Three: Keeping copious notes. It’s a good idea to create a file for your debts or bills in collections and retain all correspondences regarding the debt for at least five years, or as long as you would keep your tax records. When making or receiving calls with collection agencies get as much information as you can. If able, record your calls but advise the collector you’re doing so beforehand.

Four: Check your checkbook. Do not ever provide your banking information over the phone to set up a payment for a later date. Collection companies are notorious for changing the payment amount or date to accommodate their needs and quotas. If your payment doesn’t clear on the designated date most agencies will make another attempt without first advising. Also, keeping Social Security and Disability payments in a separate account is also a good idea as they are exempt and cannot be used as a source for court ordered debt paybacks.

Five: Outsourcing. Working with a 3rd payment debt management agency, preferably nonprofit, is probably the easiest way to alleviate any and all calls and payment requests. A nonprofit organization will provide a free counseling session where they review your credit report for free and help sort through your bills to develop an affordable payback plan that’s within your monthly budget.

Speak to a certified credit counselor today for a free debt consultation and learn how you can better combat collection calls and improve your credit with nonprofit counseling services. A certified credit counselor will outline and detail your rights under the FDCPA to help stop collection calls. Live Chat with a counselor today on our website freedomdm.org or complete the contact request form to make an appointment with a counselor. Call 800.905.1563 and get a free credit report review and budget analysis to help improve credit and stop creditor and collection harassment. Nonprofit counseling services can help you be debt free in 5 years and build back your credit score while doing so. You can be debt free, Freedom Debt can help.

Debt Collection: A Look Inside Collection Training

2010-07-22T14:23:00.000-04:00

As if the mass mailings and multiple calls weren’t enough to drive you to drink, collectors are also obtaining free online tips on how to better bang out calls to bring in your bucks. Learn what collectors are being coached on to better their efforts against consumers with accounts in collections. Read through these training tips collectors are using to manipulate or trap you into making a payment over the phone.

1. Be Prepared: Write down a list of common excuses debtors make and prepare your rebuttals to combat the debtors excuses. Exchange other ideas with co-workers and then categorize the possible excuses and incorporate them into your call script. It’s also wise to have handy: Exact amount of debt owed, Terms of sale, Product/service purchased, Payment due date.

2. Think Positive: Develop a positive mental state before jumping on the phone. Act as if every call is your first call on a great day. Wear a smile, it helps with tone. Be positive and maintain control of the call. Give the debtor a good personal vibe and work a payment out of them in a positive, professional manner. They may not like the collection agency, but you could be their best friend.

3. Respect My Authority: Tone is a strong tool when dialing for dollars. Debtors respond to tone. The tone, pitch, and speed at which you speak can have a powerful influence over your debtor. Take an anchorman or a radio DJ for example. Their voices command attention with little effort. You can take control of your call the same way with a confident tone and still maintain professionalism.

4. Establish Control & Maintain It. Address the debtor by name during the entire conversation. This displays respect and demands constant attention. Agree with your debtor, right or wrong. – I understand why you feel like that John – Validating their concerns keeps the lines of communication open and will eventually disarm the debtor. Ask open ended questions to lure your debtor in and absorb as much information as you can squeeze out. Silence is deadly. Count to 5 before replying to a debtor, wait a few seconds after being asked a question. An uncomfortable silence can create a sense of urgency in the debtor to satisfy the dead air, losing focus of the original reason for the call.

5. Lock & Key. Don’t waste your call. Every call should end with a payment, partial payment, or a commitment to make a payment in the very near future. If you don’t get a payment by phone at least you have obtained some ammunition and an open invitation to continue contacting the debtor for a committed payment. Have the debtor set up a payment for an extended date. This alleviates playing cat and mouse down the road and locks the debtor into a payment.

6. Adaptation. Every debtor is different. Lock into details like location and accents. What was the debt you’re collecting on? Identify who your debtor is before making contact. Listen to your debtor and pick up clues about their lifestyle and personality. This will help you decipher the best way to handle each situation.

Understanding your rights under the Fair Debt Collections Practices Act (FDCPA) will enable you to defend yourself against collection tactics and unscrupulous measures to collect. Use the information collectors are using against you to prepare and protect yourself when combating collection calls.

Nonprofit debt consolidation counseling services can stop collection calls and enforce your rights under the FDCPA for you. Make one monthly payment without the hassle of dealing with your creditors and collection agencies and be debt free in 5 years or less. Speak to a certified credit counselor today at 800.905.1563 or visit our website freedomdm.org and learn more about how you can stop collection calls and improve credit while getting out of debt. You can be debt free, Freedom Debt can help.

Bernanke: No End to High Rate of Joblessness

2010-07-21T16:55:00.000-04:00

WASHINGTON — The unemployment rate in the United States is likely to remain well above 7 percent through the end of 2012 and the duration of President Obama’s current term, according to the Federal Reserve.

Ben S. Bernanke, the Fed chairman, told Congress on Wednesday that it would take “a significant amount of time” to restore the 8.5 million jobs lost in the United States in 2008 and 2009, and warned that “the economic outlook remains unusually uncertain.”

Read the full story on the New York Times

Types of Credit

2010-07-19T14:07:00.000-04:00

Taking charge of your credit starts with understanding the four different types of credit, how they work, and how they affect your credit score. Establishing an educated position on different types of credit will enable you to make smart financial decisions and aid in deciding what steps you can take to improve credit. The better the credit score, the better the financing rates when purchasing a new home or automobile.

Utility credit is one of the most common types of credit. Electric, gas, and phone companies issue a line of credit to consumers. Utilities are not paid in advance. The service, or energy, used is tallied and due after it has been used. Because of this system most utility companies require a deposit when establishing an account. They also charge late fees and can report late or unpaid accounts to the credit bureau. What they do not do is report your positive payment history. So you basically get no kudos for paying your utilities on time but will be stricken with a negative mark if not paid in accordance with the terms.

If you have a mortgaged home or a student loan you’re probably familiar with loan credit. An application qualification process begins the steps to obtaining a loan. Banks and lenders have strict guidelines to ensure the loans they approve can be paid and will not default. Obviously this isn’t the case in every instance but remains to be the foundation in establishing lines of credit. A good credit score can greatly increase your chances for being approved for a line of credit. The better your credit rating the better the interest on the line of credit. Timely payments are usually reported to the credit bureau to help improve credit. Missed or late payments over 30 days are reported negative and can cripple your good standing very quickly.

If you have ever purchased a car or major appliance and made small monthly payments towards the total balance you have utilized installment credit. The interest or finance charges for this kind of credit are built into your monthly payments. Paying the debt timely will improve your credit score over time. Payment history accounts for 35% of your credit score. It’s the largest factor in the credit score formula.

Basic plastic lands in last place. Credit cards enable consumers to spend money they do not have and offer payback plans with minimal payment requirements and high interest and finance charges. Like other types of credit, rates vary based on the consumer’s credit history. Penalties and fees come in many forms and fashions and can be applied without notice. Late payments are reported to the credit bureau, dropping your credit score dramatically. Your score goes down a lot faster than it goes up. Missing payments is the most common reason scores drop. Spending more than 30% of the available credit will also impact your credit negatively and lower your credit rating. That means if you are approved for a Visa card with an available credit line of $5000 spending more than $1500 of that $5k will drop your score. High interest rates and small payment requirements create a payment cycle that maintains a good credit rating but never pays back the debt.

You can pull your credit report once a year to see what types of credit you have and how they are affecting your credit rating. Its always a good idea to run your credit at least once a year to make sure there aren’t any fraudulent charges and that you have not become a victim of identity theft. Websites like annualcreditreport.com provide free credit reports for consumers once yearly. A certified credit counselor working with a nonprofit organization will provide a free financial analysis and credit report review to consumers who want a professional and definitive review of their credit report and financial portfolio.

Visit our website freedomdm.org and live chat with a credit counselor or complete the contact request form for your free financial analysis and credit report review. Call 800.905.1563 and speak to a professional today about your specific situation and financial goals. Non profit counseling services can eliminate debt and improve credit. You can be debt free, Freedom Debt Management can help.

Budget First Steps to Financial Freedom

2010-07-14T14:41:00.000-04:00

In these difficult economic times, the middle class is being squeezed more than ever. As unemployment continues to rise the future is not exactly bright. That is why everyone should be trying to increase their savings while trying to reduce their spending. No matter how solid you may think your employment is, in today’s economy and for the foreseeable future nobody is guaranteed employment. Even the once sacred government job is no longer secure. Municipalities, counties, and states are all experiencing budget crunches and in some communities even police have been laid off. Let’s not even talk about the federal governments problems.

So you want to save more but are currently barely making ends meet. The first step to improving your financial situation is to develop a household budget. One starts by analyzing their current spending habits. The best way to get your arms around this is to use your debit card for everything you purchase for one month. You now have a record of where the month’s income went. If you don’t have the debit card or don’t like the idea, you can start by sitting down and listing all your monthly bills, then estimate what you spend on food, entertainment, maintaining your living space and vehicle, etc. The challenge is to actually record these expenditures for a month as most people tend to underestimate their actual spending. The bottom line is we all need to develop a household budget or spending plan and review its accuracy in order to effect any change in our financial circumstances.

This process can be greatly simplified by contacting a certified credit counselor at a non-profit credit counseling organization, as they should be willing to help you through this process at no-charge to you.

The next step is to review your assets and liabilities. Assets are what you own, house, car, clothes, and other personal property. Liabilities are what you owe to others. For instance, in the asset column, you’ll list your vehicle at its current value. In the liability column you will list what you have left to pay on your vehicle loan. If the amount you owe is less than the value of the car it is a net asset. If it is the other way, you owe more than it is worth; it ends up in the net liability column. The same is true or your house or anything else that you have financed. The difference between one’s assets and their liabilities is one’s Net Worth. If this is a negative number it means you owe more on your assets than they are worth.

Now that you have an accurate assessment of what your current financial picture looks like, you can set goals and use budgeting as a way to achieve them.

For many younger adults the goal of Home-ownership is common, with the most common roadblock to achieving it being their credit situation. For the past twenty years Americans have enjoyed “loose credit” but at a price. (Interest rates on credit cards for most have climbed into double digits, with the average approaching 20% APR’s. In round numbers, if you are carrying $10,000 in credit card debt, it is likely to be costing you over $2,000 per year just in finance charges.

This is where a non-profit credit-counseling organization can really help. After going through your financial analysis with your counselor, they will discuss your financial goals with you and help you develop that spending plan to achieve them. If you are burdened with considerable credit card debt, they have programs that can get your interest rates back into single, fixed digits and are designed to have you out of debt in five years or less.

For the potential homebuyer that has a high debt to income ratio these programs can help you get into a house years earlier than going it alone and paying those high interest rates.

For more free financial information please contact a certified credit counselor by visiting our website freedomdm.org and fill out our contact request form or opt into a live chat with a credit counselor during business hours. You can also call at 800-905-1563 and receive your free financial consultation right over the phone. Non profit counseling services can improve credit while eliminating debt. You can be debt free, Freedom Debt can help. Call us.

Financial reform heads to Thursday vote - Business Courier of Cincinnati

2010-07-14T09:35:00.000-04:00

Financial reform heads to Thursday vote - Business Courier of Cincinnati

Automated Debt-Collection Lawsuits Engulf Courts

2010-07-13T10:19:00.000-04:00

As millions of Americans have fallen behind on paying their bills, debt collection law firms have been clogging courtrooms with lawsuits seeking repayment.

Read the full story on New York Times

Democrats Push Financial Reform With Slim Margin for Error

2010-07-12T10:39:00.000-04:00

Senate Democrats will make the final push to pass a financial reform bill this week, knowing they have slim margin for error in their hunt for votes.

The House of Representatives has already passed a version of the bill. To send the bill to President Obama to sign into law, Senate Majority Leader Harry Reid will likely need 60 votes to overcome a procedural hurdle in the 100-seat chamber.

See full article from DailyFinance: http://srph.it/aMLHsV

Credit Debt Solutions

2010-06-30T19:15:00.000-04:00

The provisions in the Credit Card Accountability Responsibility and Disclosure (CARD) Act of 2009 should save consumers at least $10 billion a year, sources say. With the good though usually comes the bad. Watch these new rules and how they will affect you specifically. Learn the if-then scenarios that will keep big banks busting from the seams with your interest payments. Remember, big banks are looking out for their interest and profits, not your best interest and options.

Consumers have expressed concern that it has become harder to understand how their credit card is really going to work as some companies seemed to hike up rates and fees without notice to the consumer. Some even imposed surprise fees on bills paid just hours late. New rules are intended to change this. Terms and conditions must stay in place for at least one year, including promotional plans.

Problem here: terms must be applied for a year – UNLESS of course you default on your payment – which is the main reason most consumers lose their original terms in the first place. This doesn’t sound very promising.

Second issue: new rules won’t change the fact that the terms will still come in a 2-font no spacing tri-fold that contains legal verbiage from header to footer, front and back. Who’s going to read that? Not me and not most consumers when they’re getting ready to open a new line of credit.

When rates are raised herein, the hiked fee can only be applied to new charges for cardholders in good standing. STOP. Good standing – read between the lines. If you’re in good standing why would they raise your rates in the first place? This means that creditors may still raise rates for no reason whatsoever to people in good standing and those who are delinquent will be hit with the maximum allowable interest increases and fees.

Consumers may be provided a pre-heed when nearing their credit limit in an effort to avoid going over and being charged a fee. Problem is some creditors may apply a service fee to provide such a service to their cardholder. Some creditors may even add this feature automatically to your bill with little or no notice. Most wont, initially…it will probably come as a change advisement via mail that purposely looks like junk so you discard before reading.

Payback disclosures. This you’ve probably already seen on your own credit statement. Creditors must provide an easy to understand breakdown of your payback plan making the minimum monthly payments. The statement should include how long to pay off the outstanding balance at the current rate and how much the final payout will amount to. This isn’t really an amenity, more like a visual reality reminder of just how deep in debt you really are- or could be.

Some creditors are now also providing an in house credit counseling plan and list a phone number to call on your statement. These consolidation plans though are internal and do not provide the same benefits one would receive through a non profit credit counseling organization. To further, the plan would only work for their accounts – not all your credit cards.

There are a few more of these new rules but I think the point is sharp and clear. New rules and regulations will always be in play to ‘protect the consumer’ and encourage spending. With each rule comes new loopholes for banks to jump through and counter the change to secure the bank’s main interest, earning interest.

You don’t have to go at this alone and most people don’t these days. Turning to a nonprofit credit counseling organization has been a growing trend for people who truly want to be debt free. A consolidation plan counters ALL the rules and eliminates ALL fees while reducing the interest rate to ONE FIXED rate in the single digits. This is currently the ONLY way people are getting out of debt within 5 years without hurting their credit. A consolidation plan, not a settlement plan, can eliminate debt and improve credit at the same time. Call and speak to a certified credit counselor today for a free financial consultation and see how our BBB rated A+ nonprofit counseling services can help you be debt free and get away from the ever changing credit game designed with one winner in mind – not you. Visit our website freedomdm.org and LIVE CHAT with a credit counselor or complete our contact request form. Super motivated? Call and speak to a credit counselor now 800.905.1563. You can be debt free, freedom debt can help.

Financial Reform: How It Affects You

2010-06-28T17:10:00.000-04:00

By Rachel Beck

Associated Press

Updated 6/25/2010 4:01:24 PM ET

NEW YORK — The financial overhaul is about more than exotic derivatives and complex risk assessments. It will change how you interact with the financial system every day, from swiping your debit card at the store to applying for a mortgage.

Read the full story on msnbc.com

New Rules, But Will Wall Street Play By Them?

2010-06-28T16:54:00.000-04:00

By John W. Schoen
msnbc.com

updated 6/25/2010 3:50:25 PM ET

After one of the most intense lobbying efforts in decades, the financial services industry will now need to navigate through a series of tough new regulations designed to control the risky bets and abusive lending practices that nearly brought down the global financial system.

Read the full story on msnbc.com

Debt - Credit Cards New Rules

2010-06-21T17:05:00.000-04:00

Acting off the public and congressional outrage over lending practices, the Federal Reserve created new rules Tuesday geared to protect credit card users from getting slammed by heavy late fees and other penalties.

Late fees have been capped by the Federal Reserve at $25. Some creditors were charging up to $40 for making a late payment. These fees sometimes increased balances and those close to their limit could easily be pushed over with available credit, then incurring an over limit fee of about $35.00. Now, multiple fees for a single late payment are considered a no go for creditors.

Penalty fees cannot exceed the dollar amount associated with the customer’s violation. Meaning, the charge you incur for a single transaction should not exceed the dollar amount of said transaction.

Inactivity fees, recently introduced through a loop hole in the Credit Card Act, have also been banned. Creditors created this asinine condition for consumers who do not use the account to make new purchases on a regular basis.

New rules also require creditors to reconsider high interest rates inflicted on consumers since 09. A lot of creditors took advantage of the new laws in place and created new terms and coinciding fees to apply. These may be next on the chopping block.

While the Credit Card Act was set in place to protect consumers big banks found loopholes and still created new terms and conditions to counter balance the losses from new regulations. These new rules take effect on Aug. 22. So how long before big banks dig their holes through these new policies?

Fact remains at the end of the day the Federal Reserve and big banks still run this country. With secret societies and midnight meetings on mysterious islands, big banks are not going to lose their profiting place in the consumer market. These new rules come to comfort average Joe and ease him back into spending without worry of big banks bullying them with outlandish fees.

And some things never change…

Creditors can still charge whatever they want for interest. First Premier is offering their bad credit Visa at 79.9% APR. The same creditor that goes to 0% in a debt consolidation program. I have two myself enrolled…

Interest rates remain at a variable rather than a fixed rate. Billing cycles are still between 28-32 days and are scheduled in accordance with receiving the most fees from the variable rate applied.

Creditors are still lowering available credit limits without notice or reason which lowers your FICO score. This also causes the unknowing consumer to overspend, thinking they have more than they thought they did – and then incurring an over the limit fee.

Minimum monthly payments are still at such a low percentage of the debt that its only purpose and service to the consumer is the continued maintenance of their good credit standing via timely payments. Minimum monthly amounts are still designed to keep you in debt, not get out.

Minimum monthly payments are also immediately applied to the lowest interest rate between purchase, cash advances, and balance transfers. That means in order to pay down the higher interest rates on your account you’ll need to pay more the minimum monthly to even begin putting a dent in it. The fact there are different rates for different transactions in itself is mud pie BS. You’re given a line of credit – why does it matter how you use that line of credit? If I cash advance it or spend it all at BP on BS, what’s it really matter? What justifies charging different rates for different types of transactions? Profit. Who lets this happen? We do by playing the game.

We’re repeating a cycle. To end the recession…. To stop the bleeding… we need not open any new wounds of debt against the nation that adds to our deficit. A re-learning needs to take place on how we spend and manage money. It starts with you, then your neighbor- and so forth.

There are affordable and reasonable solutions out there to get out of debt and become debt free. Nonprofit Credit counseling organizations are designed to provide free budget counseling and develop a household budget that helps manage debt to income ratios positively on a monthly basis. A nonprofit debt consolidation program can consolidate your unsecured credit and medical debts to one low monthly payment that pays back the debt at reduced FIXED interest rates, enabling a consumer to be debt free within 5 years or less and saving thousands in interest.

To speak to a certified credit counselor for your free financial assessment call 800.905.1563 or visit our website freedomdm.org and LIVE CHAT with a certified credit counselor. You can also complete out contact request form and a certified credit counselor will call you at a time requested to review your information and see if debt consolidation can benefit you. Our nonprofit counseling services can improve credit and get you out of debt in 5 years of less for little to no cost. Call our BBB Rated A+ nonprofit today.

BBB Rated A+ Non Profit Debt Consolidation

2010-06-17T19:23:00.000-04:00

You can be debt free, Freedom Debt can help. Call and speak with a certified credit counselor for a free financial consultation of your household budget and unsecured debts to consolidate. Our nonprofit counseling services help improve credit while eliminating debt faster with lower, FIXED interest rates.

Call 800-905-1563 or visit our website freedomdm.org and LIVE CHAT with a certified credit counselor or complete our contact request form to be contacted at a time that works for you.

New Rules Protect Credit Card Users

2010-06-16T17:51:00.000-04:00

By Jeannine Aversa

Updated 5:57 p.m. ET, Tues., June 15, 2010

WASHINGTON - The Federal Reserve adopted new rules Tuesday aimed at protecting credit card customers from getting socked by lofty late payment charges and other penalty fees.

Read the full story on msnbc.com

The Sagging of the Middle Class

2010-06-16T17:37:00.000-04:00

By Nancy Folbre
Original Post Date June 14, 2010

It’s not that all middle-class jobs have gone missing. It’s just that their growth is sagging compared with that of other jobs. No giant sucking sound, just the gentle hissing of an inner tube losing air, threatening a flat tire that could send the American dream machine off the road.

Read the full story on The New York Times

Credit Unions Picking Up Steam

2010-06-14T16:30:00.000-04:00

By Herb Weisbaum

msnbc.com contributor

updated 6:46 p.m. ET, Wed., June 9, 2010

The nation’s banks are still feeling the public backlash from the financial meltdown and government bailout. Sizeable numbers of people are showing their anger by moving their money to credit unions.

Read the full story on msnbc.com

Retailers, Card Issuers Duel Over Fees

2010-06-09T11:20:00.000-04:00

By Jim Kuhnhenn

The fight over plastic has been raging for years — a federal appeals court once called it "a clash of commercial titans." Now it's landed in the middle of a massive financial regulatory bill primarily aimed at restraining Wall Street.

Full story on msnbc.com

Nonprofit Debt Consolidation Credit Counseling

2010-06-08T15:57:00.000-04:00

Too good to be true debt elimination ads float across your TV and internet day and night with unreal promises to alleviate your unsecured debts in no time. For-profit agencies are taking advantage of consumers with quick and easy debt solutions that sometimes place the consumer in deeper debt or worse, in court. Said and done, it’s hard to distinguish the good from the bad. In these times, research should be done whenever you plan on doing business. Look for these traits in seeking a reputable agency that has your debt free existence as their best interest.

Better Business Bureau. This website should be locked in your favorites for all future business ventures. You can usually find a good reputable company through the Better Business Bureau. The BBB has a rating system based on client relations and testimonials. Reviews and consumer complaints are also published to help other consumers determine the company’s credibility. Becoming a member of the BBB is not required. It is a membership companies usually volunteer to be a part of as the BBB is known to provide accurate and up to date data on a company’s practices.

Nonprofit. Plain and simple, if you want third party help with your unsecured debts and are not interested in becoming another scammed statistic nonprofits are the way to go. Nonprofit debt consolidation agencies are everywhere but they need to be validated just like any other membership, accreditation, etc. Make sure the company is a 501c3 nonprofit agency and verify this along with their BBB rating.

Full of fees- Only $399 to start. Stop right there. Is someone really trying to charge you $400 to START getting out of debt? This is a for-profit red flag and should be treated as such. Any agency looking to charge you an enormous enrollment fee isn’t looking to help you save money. Urban myth nonprofit = free. Nice try. Even nonprofits have to charge fees but the fees should be nominal and coincide with the savings and a developed household budget that was part of a free financial analysis. Paying more than $100 to join a program is suspect. A monthly service fee too, should never be more than $50 a month. Some nonprofits go as low as $10 a month to help a client get the maximum savings from a consolidation. Bottom line, the fess should coincide with the savings.

Getting schooled. The counselors employed with the nonprofit should be certified credit counselors who have gone through a certification course and update their certs accordingly with continued training courses. If you’re working with a certified credit counselor you’ll know it. Certified credit counselors working for a nonprofit agency will more than likely start off with a financial analysis of your monthly budget, then a consolidation quote.

Cutting debt in half: If you owe it, you will pay it. There’s no such thing as walking away from a debt free and clear without consequences. Companies looking to cut your debt in half, or payback 60% of your debt are settlement agencies not debt consolidation. Sure, this has and can be done- cutting debt in half, paying back less than what you owe, etc- but at a cost to your credit score. 7 years bad credit, paid in full or not. Each account paid back less than owed will show such on your credit and be reported as a Charged Off debt for seven years.

Settling debt doesn’t help your credit. Let me ask. If you loan me $5k and after months and months of calling and harassing I pay you back $3k. Are you likely to lend to me again in the future? That’s how a lender looks at a settled account.

FREE FREE FREE: While nonprofits do have to charge something to cover overhead and payroll, all nonprofits should be providing some sort of free financial information or literature to maintain their nonprofit 501c3 license. This is required of the organization to maintain their nonprofit status. A free financial literacy guide, a free budget counseling session, or both should be provided with the free debt consultation.

If you’re trying to get rid of your credit card debt or are struggling with monthly payments these guidelines will help you find a reputable organization to assist you in being debt free without costing you an arm, leg, or your credit score. BBB rated A+, Freedom Debt Management, Inc is a nonprofit 501c3 licensed financial counseling organization. Certified credit counselors work with consumers to build a household budget and an affordable consolidation plan. Call 800.905.1563 to speak with a certified credit counselor for a free debt analysis or visit our website to complete our contact request form or LIVE CHAT with a counselor during business hours. Our nonprofit counseling services can eliminate debt and improve credit while doing so. You can be debt free, Freedom Debt can help.

Non-Profit Budget Counseling

2010-06-03T11:25:00.000-04:00

Non-Profit Budget Counseling

Credit Report Myth Busters

2010-06-02T18:49:00.000-04:00

There are a lot of misconstrued notions about what affects your credit rating negatively. Pots calling kettles black, spoons jumping over moons, nobody seems to have a solid answer on the who, what, where of credit scores. Many of these myths derive from misleading ads, exchanged words at the water cooler, and profit driven promises from companies selling services.

In a credit dominant country where your job and home are now tied into how you spend and manage imaginary money, it’s extremely important to know and understand the terms of credit scoring and what can help and hurt you long-term.

Officials from both TransUnion and FICO have spoken on the impact, or lack thereof, of fraud alerts negatively affecting ones credit rating. Simply put, it does not. Instead, it’s more like a yellow caution flag suggesting the lender ask for more definitive information or identification to ensure the application is actually coming from you. The reality of the matter that has always been constant with the credit bureaus is that a fraud alert will not hurt or negatively impact your credit, but it could very well slow down an application process. The double checking by lenders could also cause a boy who cried wolf syndrome amongst lenders who have to over analyze a credit report with a fraud flag. So while a fraud alert does not drop your score it could make a lender leery about approving you for a loan. If this is the case, find another lender.

Shopping rates and lenders also needs clarification. Most consumers have been taught to believe that if they are shopping for a new car or home that the multiple inquiries will result in negative marks on their credit. Not the case, but not entirely false either. A window of opportunity is opened for consumers who are shopping for a new home or automobile. Multiple applications can be made within a certain time frame, usually between 14-30 days. If multiple inquiries are made within the given window your report should only show one inquiry and said inquiry should not decrease your rating. Shopping car, home, and life insurance works the same.

Checking your credit does not hurt your score. Anyone can go to annual credit report .com and receive a free credit report from all three credit bureaus without impacting their score once a year. Checking your credit should reflect, if anything, as a soft inquiry. In instances of credit denial, a credit report can also be pulled and reviewed by the consumer without hurting their rating. It’s encouraged to check your credit once a year to ensure you are not a victim of identity theft.

More often in the media, debt management programs have gotten a bad rep as a get out debt solution that destroys credit. Another half truth. In actuality, it really depends on the type of debt management plan you enroll in.

A debt settlement plan that pays back a portion of the debt you owe, or reduces your debt by 50% etc, can negatively impact your score for seven years. But it’s not because of the settlement program itself but the status the accounts must be in to be settled upon. Accounts must go into a charged off status before they can be settled on. Charged off debt means that the creditor has not received payment in 6 or more months and has written the debt off as a bad debt and sold it to a collection agency.

Debt consolidation, the lowering of interest rates, can improve your credit over time with timely payments and faster balances reductions via lower fixed interest rates. With lower fixed rates the balances are paid down faster, decreasing the outstanding debt much faster than traditional monthly payments. Payments are made each month as received and sent out to maintain a positive payment history. Consecutive payment history accounts for 35% of your credit score. Outstanding balances account for 30%.

Debt consolidation loans can also hurt your credit. Also known as the robbing Peter to pay Paul plan, this method is simply a glorified balance transfer transaction. Balance transfers, consolidation loans, however you want to paint it, can result in a drastic drop to the score as you’ve just created one huge debt by transferring all your balances to one.

A certified credit counselor working with a nonprofit agency can provide a free credit report review for you and go over what’s affecting your credit and how in a free financial consultation. To speak to a certified credit counselor visit our website and LIVE CHAT with a counselor or complete our contact request form. Learn how nonprofit counseling services can improve credit and get you out of debt by calling 800.905.1563. Freedom Debt Management is a BBB Rated A+ nonprofit counseling organization. You can be debt free, Freedom Debt can help.

Poll: Americans Stressed Out By Debt

2010-06-02T13:19:00.000-04:00

updated 10:21 a.m. ET, Sun., May 30, 2010

WASHINGTON - The economy trudges ahead yet debt dogs many Americans, stressing them out even as they firm up their own financial foundations.

There are new jobs produced but old worries persisting for people despite belt-tightening and boosted savings, according to an Associated Press-GfK poll. Go to msnbc for the full story-

Consumer Spending Weakest In 7 Months

2010-06-02T13:09:00.000-04:00

updated 2:15 p.m. ET, Fri., May 28, 2010

WASHINGTON - Consumers don't appear confident enough in the economy to open their wallets more freely.

Their spending stalled in April. Without stronger job creation and higher pay, people are less likely to up their spending in the months ahead and invigorate the recovery. Read the full story on msnbc.com

Visa & MasterCard's Loss Won't Be Your Gain

2010-05-27T15:35:00.000-04:00

fool.com By Dan Caplinger: May 24, 2010
When new laws decrease fees, you'd think most people would end up better off. Yet the much-ballyhooed new regulation on interchange fees may end up doing ordinary consumers more harm than good.

Check out fool.com for the full story

The New Lords of Finance

2010-05-27T15:19:00.000-04:00

Wall Street Journal May 25th 2010
If you think the lobbying is intense while Congress considers financial reform legislation, wait until the President signs it. That is when the real battle will begin to shape the new rules of Wall Street.

Read the full story on online.wsj.com

Cuts to Child Care Subsidy Thwart More Job Seekers

2010-05-27T14:54:00.000-04:00

New York Times Peter S. Goodman Reports:
Despite a substantial increase in federal support for subsidized child care, which has enabled some states to stave off cuts, others have trimmed support, and most have failed to keep pace with rising demand, according to poverty experts and federal officials.

Read the full story on nytimes.com

Mortgage Delinquencies Surge To A Record

2010-05-21T10:45:00.000-04:00

WASHINGTON - The mortgage crisis is dragging on the economic recovery as more homeowners fall behind on their payments.

Analysts expect improvement soon, but the number of homeowners in default or at risk of foreclosure will have a lingering effect on the broader economy.Read the full story form the Associated Press on msnbc.com

Debt Consolidation the Cure for Credit Debt

2010-05-20T18:19:00.000-04:00

As the Credit Card Act took stage across America in Feb 2010 the banks followed with their own performance that will continue playing on uninformed consumers with as much interest as they can charge. As recently reported, the Credit Card Act designed to protect consumers, has enabled banks to create new terms and conditions, fees and rates at their discretion.

The banks newest bright idea bulb is burning cardholders whenever portions of their balances carry different interest rates. Different interest rates are usually found itemized on your statements between purchase, cash advances, and balance transfer transactions. Cash advances usually come with much higher interest fees than regular purchases. Some sources say the interest difference between purchases and cash advances can be as much as 10 percent.

A logical consumer would want to first pay down the balances with the higher interest rates. OBVIOUSLY it makes more sense to pay down the higher APR balances first as they rise at a faster rate. As you can imagine, this logic is bad business for big banks. So to better business for banks, payments need to be applied to balances with the lowest rates first to ensure the higher rated balances continued their costlier climb.

The Credit Card Act specifies that any payments above the minimum must first be applied to the balance with the higher interest rate. ABOVE the minimum…that means you’ll have to make more than the min to even start paying down the higher rate balances for cash advances and balance transfers. That means every month you pay only the minimum none of that payment is being applied to 1 or 2 other balances with higher interest rates and the fees continue to tack onto your outstanding debt totals.

Undermining the recent credit card reforms like a lot of new practices coming into play, it remains legal for big banks to bully consumers out of hard earned income to cover the banks best “interest”. As one usually does when guilty, a larger bank - defended – its actions by stating the policy is clearly illustrated in its cardholder agreement. That’s correct, it’s right there in that 2 font sized tri-fold agreement that came via snail mail sandwiched within a dozen advertisements. So shame on you for not dissecting that tri-fold and strike your finger twice. Wink*

Most consumers do not ever realize that banks apply payments to their disadvantage and have been doing so for some time. Creditors have recently added the reality box to statements that illustrates just how long it will take to get out of debt making minimum monthly payments. The numbers are staggering. $36k over 15 years to pay off a $10k debt doesn’t sound like a good deal to the majority and with good reason. It’s not a good deal at all. The numbers only add up if you’re a banker on the receiving end.

Credit debt is said to be one of the primary reasons our nation is in such disarray. Banks will continue the cycle to create more profit and the rich get richer while the poor get foreclosed on and fall bankrupt from credit card debt. The system isn’t going to change and no matter what Act is put in place, at the end of day the fact remains that the banks run this country.

With little solutions available a lot of consumers are turning to debt consolidation. This safe haven seems to be one avenue of debt relief for consumers who don’t want to play in the credit game anymore. The realization that game is meant for one winner and one winner only has consumers closing and consolidating their debts for reduced interest rates and an affordable monthly payment that won’t break their budget.

No Act is going to improve this country’s financial health. Behavior modification is necessary for America to evolve and become debt free. A relearning of how to budget money and only spend what you have could be the start to a debt free America.

Work with a BBB accredited nonprofit organization to build a household budget and consolidate your unsecured debts. Nonprofit counseling services can help improve credit while eliminating debt with timely monthly payments. Freedom Debt Management, Inc is BBB accredited and rated A+ for helping America be debt free one household at a time. Call 800.905.1563 and speak to a certified credit counselor to discuss your debt free options and develop a free household budget. Visit our website and complete our contact request form or use our LIVE CHAT feature and speak to a live counselor. You can be debt free, Freedom Debt can help. Call us, Michael Brazier

Free Credit Report with Credit Score

2010-05-19T18:18:00.000-04:00

If you’ve ever been declined for a new credit card, car loan, etc you’ve most likely been offered a free credit report via snail mail to review and see why your credit was declined. Unfortunately, the numeric score that determines the approval process is nowhere to be found on these free credit reports, leaving consumers just as confused as to why they were declined in the first place. SO how does a free credit report via snail mail 10-14 days later with no numeric score actually help educate a consumer on why exactly they were declined? It doesn’t. You now have your 20-30 page credit report a week after the fact filled with verbiage that reads about as easy as mumbo jumbo.

These free credit reports contain the status and payment history of outstanding lines of credit and other financial obligations including credit cards, charge accounts, home mortgages, car notes, and delinquent medical and utility bills that have been sold or outsourced to collection agencies. This data is used by the credit bureaus to generate your credit worthiness on their 300 to 850 numeric credit score scale. Lenders primarily use the credit score itself to approve a loan process, so it’s important to know and understand what they’re seeing that coincides with the data on the credit report.

In an effort to help expand financial literacy in America and further educate the masses on credit, an amendment proposed by the Senate Monday could stand to change free credit reports and provide consumers with their numeric score to better understand where they’re at with their credit rating and where they need to be in order to get approved based on a lenders point of view. The credit score would be required to be provided in instances of credit denial, if required a higher interest rate on a loan, or if credit prevented one from establishing new employment.

The Senate verbally voted and approved a proposal by Mark Udall of Colorado to require credit reports to include the numeric credit score that gauges a consumer’s credibility (pun intended) on a scale from 300 to 850, 850 being the big winner of low interest rates on future lines of credit and loans. So what once could cost a consumer up to $15 with their free credit report data, now may be available free of charge when obtaining a free credit report under the aforementioned circumstances.

Unfortunately, a person’s credit worthiness has become a huge factor in daily life as it now used with employers and apartment complexes to determine consumer credibility. Negative credit history = negative consumer these days. This unfair assessment of character has become norm in today’s society and it doesn’t seem like the unbalanced scale of justice will be tipping in favor of average Joe anytime soon. Reviewing your credit report once a year is encouraged to ensure you are not a victim of identity theft and are aware of what’s being reported on your behalf.

You don’t have to be denied credit for a free credit report. You can also obtain a free credit report from annual credit report .com from all three credit bureaus once a year instantly online. Instantly seeing what a lender could see before applying for credit could give consumers a better assessment as to what they would or would not be approved for based on their current data before applying for new lines of credit.

A certified credit counselor with a nonprofit consolidation agency can review your credit report for free and help explain the details of the report and how lenders use the data to determine credit eligibility. Commonly, credit counselors can find ways within your report to improve credit and possibly offer free counseling services to eliminate your unsecured debts faster than normal. Speak to a certified credit counselor today to review your credit report for free and learn how you can improve credit and be debt free with nonprofit counseling services. Call 800.905.1563 or visit our website freedomdm.org and LIVE CHAT with a counselor or complete our contact request form. You can be debt free, Freedom Debt Management, Inc. can help.

Personal Finance: New credit card rules take effect

2010-05-19T10:43:00.000-04:00

Visit msnbc.com for Breaking News, World News, and News about the Economy

Speedy New Traders Make Waves Far From Wall St.

2010-05-18T10:52:00.000-04:00

RED BANK, N.J. — Above the Restoration Hardware in this Jersey Shore town, not far from the Navesink River, lurks a Wall Street giant. Here, inside the humdrum offices of a tiny trading firm called Tradeworx, workers in their 20s and 30s in jeans and T-shirts quietly tend high-speed computers that typically buy and sell 80 million shares a day. Full story on New York Times...

Senate Votes for a Clear Credit Score

2010-05-18T09:55:00.000-04:00

WASHINGTON — Anyone rejected for a credit card, car loan or department store charge account has most likely discovered a frustrating aspect of the government-mandated, free credit reports: the glaring absence of the numerical credit score that lenders rely on to make their decisions.Read the full story on The New York Times...

Credit Card Offers What to Watch For

2010-05-13T18:50:00.000-04:00

As recently posted, it would seem that credit card applications are making a comeback. While America has faced a tough time financially it would seem big banks are back in business to produce new profits by introducing new credit opportunities with tougher terms and conditions. When receiving these fancy enticing offers carefully consider the following points within the terms and conditions and applicable fees.

Annual Outrage. With new regulations in place on interest rates and fees banks have to replace revenue somewhere. Inabilities to raise rates have opened a new door of debt for banks to welcome new customers through when establishing new credit. Expect to see more annual fees to coincide with new card offers, forcing applicants to pay a fee every year just to have an open account.

Wanted: Rewards. Ones consumers reward is another consumer’s debt. Studies show, consumers who use reward cards make more purchases, carry less than the average balance, and are more likely to make timely payments consistently. That’s nice, but what about the other 80% of Americans struggling? For those with balances over 30% of their credit limit expect to see a hike in interest rates and fees with most major creditors.

The Roulette Table of Rates. Intro rates, Promos, balance transfers, etc are still being offered but with shorter terms and higher ‘go to’ rates once the time has expired, leaving you with an APR that could cost you 3x’s the amount charged after all is said and done. These are bait and switch tactics that have been used for eons by big business to hook line and sinker any sucker willing to bite.

Variable rates are on the rise too as banks can skip the credit card law's requirement for 45 days notice before raising rates. Fixed rates are rarely offered unless it’s in conjunction with an intro offer that will shortly expire. Fixed rates thrive in nonprofit debt consolidation programs and creditors will not grant or adjust rates for consumers to lower fixed rates unless the accounts are closed and consolidated with a third party nonprofit.

Balance Transfer Buy Outs. Balance transfer fees have increased as well with most new offers being mailed out to America. Banks are charging up to 5% of the transferred balance and some may tack on transaction and processing fees on top of that. To further, the interest rate on balance transfers has a shorter life span that it used to. What could once be a balance transfer at 0% for 12 months has since been changed to 0% for 6 months with major default stipulations and fees god forbid you miss or make a payment late.
Offers that are too good to be true are just that. If the credit card comes with special introductory rates and terms chances are they will surely make up for missed profits once those initial terms expire. Remember, the banks are in this to make money off you, not give free money. Your personal financial portfolio is not of their concern outside of earning fees.

Nonprofit counseling services that eliminate debt and improve credit seem to be the only logical solution for Average Joe to actually get out of debt without hurting their credit rating. By stopping fees and lowering interest rates to lower fixed rates, consumers are able to pay off their debts faster at a more affordable rate that fits within their monthly budget. Nonprofit consolidation counseling services can actually improve credit over time by making your payment each month and bringing your outstanding balances down faster with lower APRs. To speak to a BBB Rated A+ nonprofit org call 800-905-1563 and see how a certified credit counselor can help you be debt free and meet your long term credit goals. Visit our website and complete a contact request for or get into a Live Chat with a credit counselor standing by. You can be debt free, Freedom Debt Management can help.

Credit Cards: What’s In Your Mailbox?

2010-05-13T12:31:00.000-04:00

After a tough 2009 big banks are blowing up the proverbial bubble on credit cards again as massive mailings are back in boxes across America. Don’t get too excited, the under 20% APRs are few and far as banks are looking to slowly rebuild capital by opening new accounts at high rates under tougher terms.

With failed collection efforts in the past 2 years most creditors have written off – or charged off- delinquent debts, sold them to outside agencies for collection efforts and are starting to fertilize a new crop of consumers, creating a new credit crunch to come. Check your mailbox for your special invitation to help produce more debt on the greatest nation of all time. Act Now!

Many offers will target consumers with a positive credit history. Please take into consideration the verbiage the big banks use. TARGET… Subprime cards, for those with poor payment histories, or as the big banks refer to as deadbeat debtors, accounted for around 10 percent of offers in process. This nominal 10% targets about 80% of Americans as the average household has had at least one delinquent credit card payment in the last two years, some sources say.

So the story goes those who need a decent rate will not qualify and the ones who can have little or no need to establish new credit. And round and round we go the credit crisis circle.

February 2010 legislation placed strict rules on interest rates and monthly fees. Credit Card companies have since adjusted some of their policies to comply with the new legislations. Some policies though, have been modified for profit over the people. Like First Premier for example- After the Feb 2010 regulations were put in place First Premier Bank Card jumped a loop hole and began issuing new lines of credit with an annual APR of 79.9% to Americans labeled deadbeat debtors behind closed doors. Their justification? Simple. If you have bad credit and want good credit you’re going to pay out the arse to get it.

The only thing big banks aren’t sure on is the current demand and desire for average Joe to consume new credit. Most of Middle America has smartened up and realized there’s no longevity in leasing lines of credit but more peace of mind in money management. That’s mainly thanks to nonprofit organizations like Freedom Debt Management who provide free financial education, credit report reviews, budget counseling sessions and free consolidation quotes to any consumer who shows an interest in becoming debt free or learning more about how to better manage their finances.

Consolidation programs have filled a gap between consumers and creditors dramatically in the last few years, creating payback plans that are affordable for the consumer and still allow the bank to charge interest, just a more reasonable, non Mafioso rate. Credit card debt has since decreased more than 10% in the past two years thanks to debt consolidation programs. Nonprofit counseling services can help eliminate debt and improve credit over time with one low monthly payment and a reduction in interest to lower fixed rates. Speak to a certified credit counselor today at 1-800-905-1563 or visit our website freedomdm.org and complete the contact request form for a free financial analysis to see what options best suit your financial situation and long term credit goals. You can be debt free and improve credit, Freedom Debt Management can help. Can’t pick up the phone? Chat with a counselor on our website via our live chat feature.

Big Uptick In Credit Card Offers

2010-05-11T10:13:00.000-04:00

Associated Press May 7, 2010

NEW YORK - Credit card offers are appearing in mailboxes again after all but drying up last year. But the deals are a far cry from the zero interest rate, no fee offers common at the height of the credit bubble. Read the full story...

Debt Consolidation: Non Profit Credit Services

2010-05-06T14:41:00.000-04:00

It’s easy to become a bit confused when trying to find a reputable nonprofit Debt Consolidation program where the counseling services will actually get you out of debt and improve credit over time. If you have accounts that are current or past due less than 6 months a consolidation plan can help you save thousands in interest and improve your credit rating over time.

These frequently asked questions will help guide you down the right path to financial freedom and better explain the ins and outs of a debt consolidation program with a nonprofit organization.

Do I need a certain amount of debt to qualify? No. A true nonprofit organization will consolidate any amount of debt if there are potential savings found in the free consolidation consultation. Agencies requiring a certain amount of debt are for profit and sales agents make a hefty commission off large debt amounts, not small ones.

Will the creditors require I close all my accounts? Yes. Any account consolidated will have to be closed either before enrollment or in the enrollment process. They key to a debt consolidation program is to get out of debt.

Do I have to consolidate all my debts? No. You can choose which accounts you want to consolidate. Some creditors do require that all accounts be enrolled if theirs is in the program but the stipulation is few and far. A certified credit counselor will encourage you to close all accounts as the end goal is to get out of debt, but again, it’s not required.

Do you reduce my balances or payback the entire debt? A consolidation program pays back the full debt amount at reduced fixed interest rates. A settlement program pays back part of the debt but requires accounts to first charge off, leaving your credit tarnished for seven years with multiple negative marks.

Are my payments sent each month? YES. This is how you’re kept current and helps maintain and increase your credit score over time. Remember, timely payments account for 35% of your credit score so it’s important for a non profit organization to ensure such is maintained for you on the accounts consolidated.

How low do the interest rates drop to? This depends on the creditor as each have their own guidelines for consolidating debts with non profits. Typically, the APRs go anywhere between 0% and 10%, depending on the creditor.

How long will this take me to be debt free? A consolidation program is designed to get you out of debt in 5 years or less. A good non profit will allow you to pay off the debt faster as able without any additional fees.

Is the due date changed with my creditors in this program? Yes. A nonprofit consolidation org will allow you to select a due date that fits comfortably around your other monthly bills and pay schedule. This date is then modified with the other terms once enrolled into the program.

Who handles my creditor and collection calls? There should be customer service department if not an assigned certified credit counselor to manage your creditor calls. The customer service department should be –in house – and available during normal business hours so they can contact your creditors on your behalf.

How will I know my creditors are being paid? You’ll still receive your monthly statement from your creditors that show the payments being made on your behalf. A consolidation org can usually provide a breakdown of the payments as well if you do not receive statements from your creditors.

What happens if I miss a payment? A nonprofit agency should not charge you for missing a payment or making a late payment. A creditor on the other hand may take a missed payment as an opportunity to default back to the original rates and terms you had before consolidating.

What’s a financial analysis? A financial analysis, or budget counseling session, outlines your debt to income ratio on a monthly basis. This is done to ensure an affordable monthly payment is provided on a due date that works around your other monthly bills.

How will this affect my credit? A debt consolidation plan can improve your credit score over time. 35% of your credit score is contingent upon consecutive timely monthly payments. Another 30% of your score is affected by the amount of debt you owe. So by having a consolidation company make your payments for you at reduced interest rates you automatically help influence 65% of your credit score with timely payments that reduce your balances faster, at lower fixed APRs.

How do I get started? Freedom Debt Management, Inc is a BBB rated A+ nonprofit org specializing in budget counseling and debt consolidation. Contact a certified credit counselor by visiting our website freedomdm.org and complete a contact request form or speak to certified credit counselor on the LIVE CHAT feature. Call 800.901.1563 and see what counseling services are available for you based on your specific situation and long term credit goals. You can be debt free and improve credit, Freedom Debt can help.

Stocks Stabilize But European Debt Worries Linger

2010-05-05T16:07:00.000-04:00

NEW YORK — The stock market stabilized Wednesday after investors let go of some of their concerns about European countries' big debt loads. Read the full story on The Associated Press

Consumer Counseling: Different Departments of Debt Consolidation

2010-04-28T18:25:00.000-04:00

There are many means to debt elimination these days outside traditional debt payback plans. In your path to financial freedom you’ll need to first evaluate what DMP is right for you. This would depend on your current financial situation and long term creditor goals. Understanding the different DMPs available will guide you in the right direction to financial freedom.

Credit Counseling Debt Consolidation
Start by finding a nonprofit you can validate with the BBB. Services come with little to no cost, including free budget counseling, financial educational information, credit report reviews, and a free debt analysis. This is the most common DMP (Debt management Plan) available to consumers who are current or past due less than 6 months. Account terms are modified including one low monthly payment, reduced fixed APRs, the stopping of fees and a continued positive payment history as payments are made each and every month as received to help improve your credit over time.

Is credit counseling debt consolidation your ticket to financial freedom? If you have any plans of utilizing your credit in the next 7-10 years this is the way to go. The qualification process from a reputable nonprofit agency starts with a budget counseling session outlining your debt to income ratio on a monthly basis. This is done to assess an affordable monthly payment and to establish a due date that works comfortably around your other bills and pay schedule. The payment plan is based on the total amount you owe and is geared to get you to be debt-free in three to five years.

Debt Settlement Debt Consolidation
The Kit Kat of DMPs, debt settlement plans give you a break on the total debt to payback. These plans are going to cost you much more than a candy bar though and rebuilding your credit score will be harder than working off that delicious Kit Kat. Debt settlement plans are the guys offering to cut your debt in half, pay back less than you owe, etc. This is the plan where you stop paying your creditors and allow the accounts to go into a charged off status where they are then sold to collection agencies. Instead of making your payments to your creditors you make payments to the agency. Funds are placed in an escrow account and built up over time to propose settlements to your creditors.

So is debt settlement your solution for salvation? If you are not concerned with your credit for the next 7 years a settlement plan could be your solution. Settlements damage your credit as the accounts must charge off before settlement negotiations even begin. If you know you have accounts that are already in a charged off status they cannot hurt your credit any worse and a settlement plan could eliminate the debt for less so you can move on and begin rebuilding your credit. Settlements are also a good means to avoid bankruptcy.

Consolidation Loans
Most often confused with credit counseling debt consolidation, a loan is just that – A LOAN. Taking out a consolidation loan is just like opening another credit card. The lender is panting and salivating in their patient wait for you to drop the ball and make a late payment so they default you, jack up the interest rate and dosey doe you go. Good job. Transferring debt is like robbing Peter to pay Paul. Guess what? Paul aint buying it and Peter landed his butt in jail for fraud. The idea here or lack thereof, is to secure a better interest rate while having the convenience of one monthly payment.

The problem is many of us can’t qualify for these consolidation loans. Officials say only 1 out of 500 American consumers qualify for a consolidation loan at a reasonable rate. You must have great credit to obtain a consolidation loan at a low APR. Consolidation loans are for the same people who actually CAN qualify for those Lexus no down payment plans and $179 a month lease payments.

No matter what solution fills your financial freedom flask it starts with speaking to a nonprofit credit counselor. Finding one online is easy, but again, verify the agency with the BBB as there are a lot of scam operations out there looking to prey on desperate people deep in debt. Speak to a certified credit counselor today to see what option best suits your situation and long term credit goals. Call a nonprofit credit counselor at 800.905.1563 or visit our website freedomdm.org and complete our contact request form. Can’t talk during the day? Try our LIVE CHAT feature and speak to a counselor live online. You can improve credit and get out of debt with our nonprofit counseling services. Call us today for a free budget analysis, credit report review, and debt consolidation quote. You can be debt free; Freedom Debt Management, Inc can help. / x Michael Brazier

A Message From The Federal Trade Commission

2010-04-26T12:03:00.000-04:00

Anyone can write a catchy jingle, but only AnnualCreditReport.com provides you with a truly free credit report. It’s the only authorized source to get your free credit report under federal law.

Non Profit Credit Counseling Debt Help

2010-04-22T12:26:00.000-04:00

There many enticing offers out there for people who need quick cash. From credit cards to payday loans, to 401k raids, consumers are constantly allured by temptation for immediate salvation. But at what cost? The penalties for tasting temptation can be long drawn and expensive. Avoid these money management mistakes on the path to financial freedom to ensure a bad situation isn’t made worse.

The 401(k) Vault: Taking retirement money to satisfy current financial obligations has been one of the most unfortunate turn of events the nation has seen during this recession depression. Aggressive creditors and collection tactics create a sense of urgency to satisfy unsecured delinquent debts and people are seeking salvation by cashing out funds that were set aside to secure their future. Never take secured funds to eliminate an unsecured debt. There are many other positive solutions to absolving debt than taking away from your retirement plan.

The Co-Sign Line: Co-signing is usually agreed upon between family members or loved ones looking to help each other out. While it’s always nice to lend a helping hand be sure you know and trust the person looking to have you co-sign. If they need a co-signer you know immediately their credit history is far from perfect. Remember, this is a business transaction and while it may be between family or a loved one, the basis remains the same – business transaction. Consider the fact you may wind up having to pay back their loan as a co-signer. If the debt isn’t paid your credit will be affected along with theirs.

New Mafia: Around 19 million Americans have fallen victim to payday loans. These short term cash advances, usually utilized in an emergency situation, start small and end in disaster. Most Americans who fall into this debt trap have dipped into payday loan quick cash fixes more than once. Payday loan companies usually will increase the amount they’re willing to loan out as you build a positive payback history with them. This Mafioso industry applies outrageous annualized interest rates ranging from 391% to 521%. A $5000 payday loan could wind up costing you $20000 to pay back. Most of these companies boldly illustrate these outrageous rates on their applications. Once you’re in this hole it is extremely hard to get out of. An unregulated industry to date, not even a consolidation program can save you from the horrific pay back terms and fees when using a cash advance. Steer clear. Beg your parents or your employer for money before you jump in the water with these sharks.

Solutions: Financial education and empowerment starts with a household budget. Knowing what you have coming in for income and what you have going out on a monthly basis is the starting blueprint to building your financial freedom. Outlining your debt to income ratio helps put your finances in perspective and can identify spending limits to avoid falling deeper into debt. Getting away from credit card use is near impossible in America with Visa being accepted in more places than cash. Having a debit card can also be helpful but harmful in same instance. Officials say the majority of overspending by consumers is commonly justified by the use of a debit card.

A consolidation plan will close your credit cards so you cannot use them anymore. Leaving one out for emergencies, you can still consolidate your other credit card debts. The consolidation will provide one monthly payment and a major reduction in the interest along with the stopping of past due, late, and over limit charges. This allows the majority of the payments to go to the principle rather than the interest. Improve credit and get out of debt with nonprofit counseling services. Our BBB rated A+ budget counseling and debt consolidation plans can help you be debt free in 5 years without hurting your credit. For a free consultation speak to a certified credit counselor and see if a consolidation plan is right for you. Call 800.905.1563 or visit our website freedomdm.org and complete our contact request form. Haven’t the time to talk during the day? Use our LIVE CHAT feature on our website and get the answers you’re looking for. You can be debt free, Freedom Debt can help. Call us and see how you can be debt free.

Debt Consolidation: Credit Services That Add Up

2010-04-15T16:06:00.000-04:00

Debt consolidation is a common alternative to paying back credit debts where balances are reduced faster by dropping the finance charges to lower fixed rates. This allows the average consumer to payback their debt at a lower, more affordable monthly payment and become debt free within 5 years instead of the ladder.

The ladder is a long and expensive climb. Paying off credit card debt the traditional way can cost you double the amount charged or more. Standard minimum monthly payments are designed to enable the average consumer to stay current with their payments at an affordable rate. Unfortunately theses minimum payments combined with the high interest rates do not get you out of debt.

Understanding the aforementioned is nice, but numbers talk. Seeing in black and white the comparable savings as to where you are and where you could be financially could really help you decide your best option for debt elimination.

Please note: The figures in this example are from a real client enrolling in a debt consolidation program. Names and locations have been changed to protect the identity of the consumer. For this lesson, we will call the consumer…Obama.

Obama has a credit card with an outstanding balance of $7,100.00
His current APR is 16.24 percent.
Obama’s current minimum monthly payment is $153.

At 16.24 percent on a balance of $7,100 Obama is paying around $96.00 in finance charges monthly.
- $1,152 annually -

Of $153.00 each month $96.00 is going to interest.
This leaves $57.00 to be applied to the outstanding balance of $7,100 with every $153 payment.

If Obama continues to make his minimum monthly payments at these rates he will be debt free in 124 months. That equals 10.3 YEARS of $153 payments to pay off $7,100 in credit card debt.

124 months X $153 monthly payments = $18,972.00 total to pay off $7,100 in credit debt.
This comes out to around $11,904.00 paid back in interest alone over the estimated term.

$18,900 to pay back $7,100 over 10.3 years. Well that sounds fair right?

Imagine if your APR was in the 20-s…or even 30-s…ouch…

Obama realized this was un-American! – And decided to consolidate his credit card.

After consolidating Obama noticed the APR dropped to a lower fixed rate and re-did the math.

Obama has a credit card consolidated with an outstanding balance of $7,100.00
His consolidated APR dropped to 2 percent. That’s T W O percent, correct.
Obama’s new monthly payment in the consolidation plan is $142.

At 2 percent on a balance of $7,100 Obama is paying around $12.00 in finance charges monthly.
- $144 annually -

Of $142.00 each month $12.00 is going to interest.
This leaves $130.00 to be applied to the outstanding balance of $7,100 with every $142 payment.

If Obama continues to make his minimum monthly payments at these rates he will be debt free in 55 months. That equals 4.6 YEARS of $142 payments to pay off $7,100 in credit card debt.

55 months X $142 monthly payments = $7,810 total to pay off $7,100 in credit debt.
This comes out to around $710.00 paid back in interest over the estimated term.

So Obama does not save much on his regular minimum monthly payment from $153 to $142.
Obama is saving $84.00 a month in finance charges, going from $96 to $12 from the interest reduction. In paying off the debt through a nonprofit credit counseling agency Obama will have saved around $11,000.00 in just interest alone.

Imagine the potential savings with multiple accounts.

Now of course, as the balance decreases so does the amount of the finance charges- but the minimum monthly payment required also decreases, which continues the cycle.

So ask yourself. Does debt consolidation add up for you? Are you willing to pay back double what you charged? If you are in a financial hardship can you truly afford to spend so much more in interest over time? Can you think of anything else you could have done with $11,000.00? I can.

In searching for a debt consolidation agency reputation is important. Be sure to check the company out online with the Better Business Bureau. Find client testimonials from people who have used their services in the past. Make sure the company is a true nonprofit and not some chop shop. Fees for service should be nominal. Enrollment fees should be less than $100. Monthly service fees over $50 a month start to take away from the interest savings by consolidating.

Improve credit and get out of debt with our BBB Rated A+ counseling services. Contact a certified credit counselor for a free budget counseling session and debt analysis to see if consolidation is right for you. Call 800.905.1563 or visit our website freedomdm.org and complete our contact request form or speak to a credit counselor via our LIVE CHAT feature. You can be debt free, Freedom Debt can help. x/Michael Brazier, Image courtesy of deesillustration.com

Bad Credit Debt Solutions

2010-04-14T14:41:00.000-04:00

Debt settlement is not for everyone yet the industry has still found its place among troubled borrowers who have bad credit and are trying to avoid bankruptcy and just get rid of their debt once and for all.

Debt settlement is sometimes confused with debt consolidation but it’s a different demon. Instead of offering repayment plans at reduced fixed interest rates, debt settlement companies typically advise their clients to stop paying their bills and instead save up cash, which the company will then use to negotiate lump-sum settlements. The settlements usually wipe out half of the balances so the client pays back a lot less than what they would have normally.

The FTC offers some guidance to help consumers identify legitimate companies. If you're contemplating debt settlement, speak to a certified credit counselor about your situation. When speaking to a counselor about their settlement plan and organization note the following points to touch upon.

Make sure the company doesn’t guarantee any results. This is an honest answer as no agency can guarantee the outcome of a negotiation. By definition alone, negotiation, it’s an impossibility.

Won't accept you if you can actually pay your debt. If you can make your payments a consolidation plan may be better for you. An honest agency will advise such as creditors will not be willing to settle on half the debt when clearly you’re capable of making payments.

Are members of the Better Business Bureau. Easy check, do your homework. bbb dot org

Offer full disclosure of all program fees and costs before the start of a debt-settlement program or signing any paperwork. If you cannot get a definitive figure on the overall fees up front walk away and find another agency.

Inform customers that the IRS classifies any forgiven debt above $600 as income that can be taxed. This is rarely disclosed as it does not become an issue until an account has been paid in full. By then the agency has taken their fees.

Negotiate on an ongoing basis with creditors and present all settlement offers to the customer. A customer service department should be available during business hours to not only field creditor calls, but to stay in contact with the consumer providing any and all updates on the settlement negotiations and creditor updates.

For a free debt settlement quote or more information on what debt free option is best for you visit our website 888hatedebt.org and complete our contact request form or speak to a certified credit counselor via our LIVE CHAT feature. Want to speak to someone right away? Call 888.428.3332 and see how you can eliminate your bad credit debt

NATIONAL FINANCIAL LITERACY MONTH 2010

2010-04-13T10:00:00.000-04:00

NATIONAL FINANCIAL LITERACY MONTH, 2010

BY THE PRESIDENT OF THE UNITED STATES OF AMERICA

A PROCLAMATION

In recent years, our Nation's financial system has grown increasingly complex. This has left too many Americans behind, unable to build a secure financial future for themselves and their families. For many, financial literacy can mean economic prosperity and protection against fraud and predatory banking practices. During National Financial Literacy Month, we recommit to teaching ourselves and our children about the basics of financial education.

Our recent economic crisis was the result of both irresponsible actions on Wall Street, and everyday choices on Main Street. Large banks speculated recklessly without regard for the consequences, and other firms invented and sold complex financial products to conceal risks and escape scrutiny. At the same time, many Americans took out loans they could not afford or signed contracts without fully understanding the terms. Ensuring this crisis never happens again will require new rules to protect consumers and better information to empower them.

The new Consumer Financial Protection Agency I have proposed will ensure ordinary Americans get clear and concise financial information. We must put an end to confusing loan contracts, hidden fees attached to mortgages, and unfair penalties that appear without warning on bank statements. The Credit Card Accountability Responsibility and Disclosure Act of 2009 began reining in some of these deceptive tactics when it recently took effect. The President's Advisory Council on Financial Capability is also looking for new ways to help individuals make informed decisions and to educate our children on core financial competencies.

While our Government has a critical role to play in protecting consumers and promoting financial literacy, we are each responsible for understanding basic concepts: how to balance a checkbook, save for a child's education, steer clear of deceptive financial products and practices, plan for retirement, and avoid accumulating excessive debts. To learn more, visit: MyMoney.gov or call toll-free 1-888-MyMoney for helpful guidance and resources.

Our Nation's future prosperity depends on the financial security of all Americans. This month, let us each take time to improve our own financial knowledge and share that knowledge with our children. Together, we can prevent another crisis and rebuild our economy on a stronger, more balanced foundation.

NOW, THEREFORE, I, BARACK OBAMA, President of the United States of America, by virtue of the authority vested in me by the Constitution and the laws of the United States, do hereby proclaim April 2010 as National Financial Literacy Month. I call upon all Americans to observe this month with programs and activities to improve their understanding of financial principles and practices.

IN WITNESS WHEREOF, I have hereunto set my hand this second day of April, in the year of our Lord two thousand ten, and of the Independence of the United States of America the two hundred and thirty-fourth.

In honor of President Obama’s proclamation that April is “Financial Literacy Month” Freedom Debt Management, Inc. (”FDM”) is proud to offer “Knowing and Understanding Your Credit” published by the “Fannie Mae Foundation” free of charge to the general public. Interested parties can obtain their free financial literacy guide by simply calling 800-905-1563.

Anthony Jurasinski, president of FDM stated “The Fannie Mae Foundation has published a concise easy to comprehend handbook covering topics such as understanding your credit score, ways to improve it, and most importantly a budget worksheet. FDM’s main service is free budget counseling, and callers can receive a free session from a certified financial counselor as well”

Darish Still, FDM’s Director of Education and Counseling added “The budget process, as simple as it may seem, is truly the first and most critical step for any individual or household that isn’t currently following and reviewing their household finances regularly. Financial and life goals become obtainable when one reviews their current situation and begin to plan for their future.”

For a free copy of Fannie Mae’s free financial literacy guide please call 800-905-1563 or visit our website and speak to a LIVE certified credit counselor. Complete the contact request for a free financial consultation and learn how to be debt free and improve credit with our nonprofit credit counseling services. You can be debt free, Freedom Debt can help.

Credit Debt Counseling Services

2010-03-31T16:10:00.000-04:00

In your determined search for debt solutions you will most likely start out seeking out an industry professional debt expert. If this is your Google search starting point you are certainly progressing in the right direction. There are a lot of factors though to consider when seeking out counseling services to improve credit and get debt relief. Take these points into consideration when shopping for debt solutions.

What type of debt elimination am I looking for?

While the industry has its standard verbiage it is important to know that there are many different types of…debt solutions…debt management plans…debt consolidation program, etc. Which one is right for you really depends on your current financial situation and your long term credit goals over the next 5-10 years.

Debt Consolidation pays back the full balance due at reduced interest rates and one lower monthly payment. The program is designed to get you out of debt while rebuilding your credit with timely monthly payments and faster balances reductions from reduced interest rates.

A consolidation plan is built for people who are up to date on payments or slightly behind, 1-4 months, and do not see their balances going down with their regular monthly payments. The plan is also beneficial to anyone who has an active APR of 15% or higher.

Debt Settlement pays back part of the debt. The program is designed to pay back less than what you owe through settlement negotiations with your creditors by a third party. Payments are held and placed in a trust account each month you send your one monthly payment for payoff negotiations later down the road. Because the accounts must first charge off before they can begin being settled, this type of program can negatively impact your credit for seven years.

A settlement plan is designed for people who are behind on payments more than 6 months and cannot catch up on payments. Settlements are also good for consumers with bad credit, accounts in collections, or are trying to avoid filing bankruptcy. Those who do not plan on utilizing their credit for the next seven years may also want to settle on the debts as the negative on their credit is a moot point.
How can I tell if the company is reputable or just another chop shop scam?

Checking a company out is one of the most important factors in deciding to work with a professional for debt relief. The market is flooded with for profit agencies that do not have your best interest at hand over their own gains. Always check out a company with the BBB and ask for client testimonials or search for reviews online. If a company says they are non-profit ask for their 501c3 credentials. Point is, if you do not do your homework you are bound to get an F.

Whichever route you decide, a truly reputable professional agency will have employed certified credit counselors to provide you a free budget analysis and free consolidation quote before providing any payment information or committing to any services.

Finding a nonprofit is easy these days but the fees for managing the account can be drastically different, a true nonprofit earns most of their funding form grants and creditor contributions for payment. While there will always be monthly service fees they should be nominal and factored into your potential savings when receiving your consolidation quote. Some agencies go above and beyond and will even review your credit report with you free of charge. Be leery of agencies that offer to pull your credit report as this could come across as a hard inquiry and negatively affect your credit. You can retrieve your own credit report once a year for free from annual credit report .com

Speak to a certified credit counselor to explore the debt elimination option that would best suit you and your long terms goals and monthly budget. Contact a BBB Rated A+ nonprofit certified credit counselor for a free financial analysis and consolidation quote at 800.905.1563 or visit our website freedomdm.org and complete our contact request form to be reached at a time convenient for you and your schedule. Learn how to improve credit with our nonprofit credit counseling services. You can be debt free, Freedom Debt can help.

FTC's Revised Free Credit Reports

2010-03-30T14:29:00.000-04:00

Provisions of the FTC’s revised rule that regulate advertisements for free credit reports become effective April 2, 2010. As required by the Credit CARD Act of 2009, the FTC promulgated the revised rule on February 22, 2010, to prevent the deceptive marketing of free credit reports by companies that required consumers to sign up for paid products and services such as credit monitoring in order to receive the reports.

According to the revised rule, print advertisements for free credit reports must include the following disclosure in close proximity to the first mention of a free credit report:

THIS NOTICE IS REQUIRED BY LAW.

You have the right to a free credit report at AnnualCreditReport.com or 877-322-8228, the ONLY authorized source under federal law.

Similarly, Internet websites must display the following disclosure, including the functioning hyperlinks depicted below, on each page that mentions a free credit report and on each page of the ordering process:

THIS NOTICE IS REQUIRED BY LAW. Read more at FTC.GOV.

You have the right to a free credit report at AnnualCreditReport.com or 877-322-8228, the ONLY authorized source under federal law.

The website disclosure must also include a clickable button that states “Take me to the authorized source” and links to www.AnnualCreditReport.com.
Telemarketers who offer free credit reports must announce to consumers: “The following notice is required by law. You have the right to a free credit report at AnnualCreditReport.com or 877-322-8228, the ONLY authorized source under federal law.”
The revised Free Credit Reports Rule also requires certain disclosures for television and radio advertisements for free credit reports, but those provisions do not become effective until September 1, 2010.

Tax Refunds Up 10% Due To Stimulus

2010-03-25T17:40:00.000-04:00

NEW YORK (CNNMoney.com) -- White House officials said Monday that tax credits launched under last year's economic recovery bill have boosted the average refund by nearly 10% from the previous year. Read the full story on money.cnn.com

Bad Credit Settlement Plans Beat Bankruptcy

2010-03-24T18:59:00.001-04:00

A debt settlement plan is a consolidation plan that basically provides lender forgiveness on portions of the unsecured debts owed, usually credit card debts that have been sold to outside collection agencies for pennies on the dollar. Consumers who have reached the point where they are simply unable to afford regular monthly payments can seek bad credit settlement solutions for economic relief through debt negotiation.

Lenders – forgive – the majority of the consumers total balances due via negotiations made on behalf of the consumer by the third party debt settlement agency. Debtors are placed on a new payment plan based on the amount of debt they owe and the estimated pay off time frame, usually between 24-36 months. The new monthly payment also coincides with the consumers financial analysis or household budget to ensure they can afford the program and successfully complete the payment plan.

In a settlement plan, creditors are not paid monthly. The consumer is required to make monthly payments to the settlement agency and funds are held in a trust account in an effort to build up an agreeable amount over time to offer in a proposed settlement pay off with the original creditor.

Accounts must be in a charged off status to begin settlement negotiations. An account –charges off – when it has gone 5 to 6 months consecutively without any payments. After said time period, the creditor writes off the debt and usually sells it to an outside collection agency for pennies on the dollar. Once an account is charged off it remains as a negative blemish on a consumers credit report for seven years. Paid in full or not, the negative mark will remain for seven years.

In noting such, it is understood that debt settlement is not for everyone. A settlement plan is best suited for those who simply cannot afford their monthly payments or have fallen severely behind on their monthly payments. Debtors who are thinking about filing bankruptcy could also consider settlements as an alternative. While a bankruptcy remains on your credit for 10 years, charged off accounts from a settlement plan only remain as negatives for 7 years.

If a debtor is just a few months behind a general debt consolidation credit counseling plan should be sought for debt elimination. Consumers who are current and want to stay current to maintain a positive credit rating could also consider debt consolidation credit counseling services over a settlement plan to eliminate their debts faster while still building their credit score.

Basically, a settlement plan is only truly beneficial to those consumers who are behind in payments more than 5 months or are looking at bankruptcy but would like to avoid filing.

Like most consolidation plans only certain types of accounts can qualify for a settlement plan. Credit card, medical, and personal loans are the most common type of monetary dilemmas that can be settled. However, secured loans, mortgages, and car loans can't be settled because anything a creditor can acquire as collateral is considered off the table. Student loans also cannot be settled.

It is best to work with an industry professional to help assess how a settlement plan could help you be debt free or what other options may best suit your individual needs and long term credit goals. Most non profits employ certified credit counselors who provide a free financial analysis, budget counseling session, and consolidation quote without any commitment from the consumer inquiring. These agencies can be easily found online but be sure to find a company that has client reviews and testimonials from their own experience as there a lot of scam companies out there as well. It is always best to check a company out with the Better Business Bureau before providing any paperwork or banking information locking you into a consolidation plan.

To speak with a certified credit counselor please contact Freedom Debt at 888-HATE-DEBT or visit our website http://888hatedebt.org/ and complete our contact request form to be reached at a time that is convenient for you and your schedule. You can also opt for our LIVE CHAT feature and speak to a certified credit counselor online immediately. You can be debt free, Freedom Debt can help. – Michael Brazier x 232

Loan Modification Could Cause Credit Score Crash

2010-03-23T17:31:00.000-04:00

The Obama administration’s loan modification program for borrowers who are making their payments on time but are near default could see a reduction in their credit score by 100 points. This will make it harder for these consumers to not only obtain any other kind of loan but could also affects one’s ability to establish new employment, as credit is being used to judge consumers in just about every instance of life these days.

Housing and credit counselors strike up the unfair band to support consumers facing this new hurdle as for most, this drastic and sudden decrease in credit rating usually comes as a surprise. Yes, you are reading correctly. Consumer credit scores are being HURT by taking measures to do the right thing and abide by the man-

The Obama administration Making Home Affordable program takes consumers through an enrollment process where the borrower enters a trial period and makes at least three payments. Once the mortgage company notifies the three big credit bureaus some people are finding their credit scores taking a dive.

Delinquent borrowers do not have anything to worry about though. Your credit crashed when you fell behind on your loans. But for homeowners, who are having financial issues and still positively maintaining payments, a request for a loan modification is the credit bureaus first flag of trouble and those will result in a decline to your credit score.

Of course the credit rating industry defends the practice and here is how: People who sign up for loan modifications would not be asking for help unless they were having severe money problems. Plain and simple. Consumers just looking for a break, not falling behind, or just playing it safe…well shame on you for asking for help, right?! WRONG.

Yes, consumers going into the program are understood and assumed to be in a financial bind and therein other lenders should be aware of that in case said consumer tries to obtain a loan from them. W O W….
The Obama administration acknowledges that enrolling in the program can hurt credit scores but justifies the means by reverting back to the fact that foreclosure as an alternative brings far more serious financial consequences for borrowers and their families.

But wait; let us cover the really intriguing end of this financial path to purgatory. Those who enroll in the Obama program and are ruled ineligible take the hardest hit on their credit. These poor people in financial duress who have sought government assistance have now been declined and further diminished their credit score, simply by making an effort to do the right thing.

For the few and far who do get accepted into the Obama program and have their loans modified, their information will also be updated by the lenders to the credit bureau. The new status will stand moot on their credit report and a person could see their score increase eventually over time.

Now homeowners are taking a hit on their credit rating for trying to get help before they fall delinquent. Really? Is the credit game something you want to continue playing in? Do you really think it was designed for you to prosper over big banks profits?

Unfortunately big banks are making it harder and harder for Joe Public to have, and now, maintain a good credit rating. At your current rates and minimum monthlies the average debtor will make 100 payments to pay off a debt of $2500 and wind up paying back 150 times more than what was actually charged in the first place.

This is insane. Your best bet is to gamble on a debt free future. Stop using credit if you do not have to. Use credit for necessities as needed, not for wants or whines. You need a home but you do not need a pocket full of plastic. Start small; consolidate your retail accounts and gas cards. Close them in a consolidation program, get a lower monthly payment with a lower interest rate and start paying back the debt you own, not the debt they have sown. Chop away at your credit debt with a nonprofit consolidation program and start your path to financial freedom.

Speak to a certified credit counselor for a free debt consultation. Our nonprofit organization provides a confidential financial analysis covering your debt to income ratio, assets and liabilities, and a consolidation quote to see how we can help you be debt free. For more information on the Making Home Affordable program or about non profit budget counseling please call 800-905-1563 or visit our website freedomdm.org

Manage Liquidity Through Debt Consolidation

2010-03-17T11:03:00.001-04:00

Debt is an old enemy of human race. Credit counselors can provide best in class debt consolidation solutions. The greed to own more and live more has increased our spending patterns. Credit counselors can ensure in providing apt liquidity for debtors. Credit counselors have been engaged in providing debt refinancing and fund channelization solutions to their clients. Debtors should reach out to credit counselors for increasing their liquidity on the go.

More number of people resorted to credit for support their lifestyle and needs. Credit card companies offer easy credit with high credit limits. Eventually debt keeps on piling up and the consumer comes under the credit burden. Debt consolidation is a mechanism in which the debt from various credit cards and personal liabilities is consolidated.

The overall debt is then negotiated by the debt consolidation company. The negotiation takes place behind the back of original debtor. Debtor needs to be bothered about onetime payment that he needs to make every month. The interest rates are much lower with higher tenure duration.

Debt consolidation can greatly reduce the debt burden on the debtor. With attractive payment plan he or she can easily pay one time to the consolidation company. The remaining disposable savings can be utilized in meeting other financial commitments. Thus it helps in achieving more financial milestones in while you are shelling out lower.

For business customers who are planning to file for bankruptcy, debt consolidation could help. Through it you can pay lower and maintain your current liquidity to pay off your debts.

So what are you waiting for? Start realizing the benefits of debt consolidation from day 1. Get in touch with the best debt consolidation service provider in your town. They can offer you cheaper loan repayment plans. The more you wait the worse it could be. Nobody likes to be overshadowed by the debt.

Speak to your friends or browse online to find the best debt consolidation services provider. They can instantly help you in closing all your debt related worries in no time. They provide solutions to hundreds of customers daily and solve their debt related problems on the go.

A Look Inside Debt Consolidation Credit Counseling

2010-03-11T18:36:00.000-05:00

One of the biggest questions is, how does debt consolidation credit counseling work?

A nonprofit credit counseling agency that abides by state regulations and creditor guidelines will begin with a free counseling session reviewing your financial addendum.

A financial addendum is an outline of your debt to income ratio on a monthly basis, assets and liabilities. This is also known as a household budget. A certified credit counselor reviews your monthly expenses versus your income to properly assess a monthly payment for your credit counseling plan that is affordable and falls on a due date that comfortably fits within your other bills and pay schedule.

This is done first to help consumers identify where they are currently with their finances and help establish where they want to go long term with their goals. A financial addendum also helps your credit counselor qualify you for a monthly payment that you can easily manage and ensures a successful completion of your program. Some creditors utilize the financial addendum to determine how much interest will be reduced.

From there, a credit counselor will then ask for the accounts you want to enroll, names and current balances. This data is used to find out what your monthly payment will be on the debt consolidation plan. The monthly payment is based on pre-established creditor guidelines nonprofits must abide by for their clients to receive program benefits such as interest reductions and the stopping of fees.

Eventually a credit counselor will want to review your statements for current fees, finance charges, and due dates in an effort to compare to the rates on the program and show the potential savings with enrollment.

At this point, a certified counselor should have provided you a budget analysis of your financial addendum, a breakdown of the total monthly payment in the program, and the potential difference in the savings between your current terms and the proposed modified terms under a nonprofit credit counseling plan. You now have a solid accounting of where you are, where you want to be, and how you can get there with a debt consolidation program.

If the payment is affordable and the savings are there and proven it is then time to select a payment date to begin your plan. Once you select a date and have committed to a plan a credit counselor should then send you any paperwork to finalize an agreement and working relationship between you and the agency to manage your debts.

After you have submitted your paperwork it is then recommended to make one last call to your creditors and close the accounts as – closed by account holder- rather than the creditor closing the account in the enrollment process. Whoever closes the account should not affect your actual credit score however some lenders may use such verbiage on your credit report to justify charging you a higher interest rate on a loan.
Keep in mind: There are some things that do hurt your credit and some things that do not that a lender will try and use to justify higher rates and fees from the affiliated banks and agencies.

Once you are enrolled in the program the credit counseling agency should be handling any communiqués with your creditors on your behalf and providing you updates as needed with regard to the status of your accounts enrolled in the program.

35 percent of your credit score is factored by timely payments every billing cycle. Another 30 percent is accounted by the amount of debt you owe. A debt consolidation credit counseling plan helps improve your credit in these two areas each billing cycle, building your credit score while lowering your debt amounts.

You see, as long as you make your payment each month a true nonprofit credit counseling agency will in turn then disburse funds to your creditors each and every month, satisfying the demand for 35 percent of your credit score, timely payments.

As your interest rates are reduced from their original rates your regular monthly payment through the credit counseling agency then applies more to the principle than the finance charges each month, bringing your balances down much faster than paying it on your own at high interest rates. This reduces the amount of debt you owe faster and further assists that 30 percent factor of your credit score in a positive direction.

A debt consolidation credit counseling plan can positively help eliminate debt while improving your credit score. Whether you are current on your accounts or behind, if you are paying more than 15 percent in interest you are paying way too much. A $5k debt at 15 percent interest could take 100+ payments and 3xs the amount actually spent to pay off the debt in full outside a credit counseling plan. Call our BBB rated A+ nonprofit credit counseling agency today for a free budget counseling session and debt consolidation quote. Visit our website freedomdm.org or call us at 800.905.1563. See how we can help you be debt free with Freedom Debt Management, Inc.

Don't Buy Stuff You Cannot Afford

2010-03-10T17:45:00.001-05:00

Debt Consolidation Calls Creditors to Action

2010-03-08T15:23:00.000-05:00

The two main benefits of a debt consolidation credit counseling plan are the reductions in finance charges and a reduced monthly payment that is more affordable for the client to manage monthly. While a reduction in interest is a primary long term benefit, a lower monthly payment is usually more pertinent to solving the consumer’s current credit crisis.

Some creditors have introduced new debt management plans (DMP) referred to as –Call to Action- that offer low or now interest rates to people who can qualify under extreme financial hardship. These new debt consolidation plans allow consumers to save from $25 to $200 more a month than a regular debt management plan.

But not everyone can qualify for this modified debt management plan. The criterion for enrollment into the CTA DMP is decided on a case by case basis by a certified credit counselor with the final acceptance coming from the individual creditors. A certified credit counselor helps determine a consumers eligibility for the CTA by administering a financial analysis covering sources of income, living expenses, and monthly debt obligations. This is also referred to as a budget counseling session or a household budget. If client qualifies by expressing extreme financial hardship a CTA DMP is recommended instead of a regular debt management plan.

Participating creditors, not all just yet, waive late and over limit fees and make favorable adjustments to the APR (finance charges) so that the CTA DMP will not extend longer than 60 months just like a regular debt management plan. While all creditors aside from Dell and Credit One participate in regular debt management plans not all are technically able to offer the CTA alternative.

In its infancy there have been no recorded success reports or percentages of completions under these new debt management plans but the NFCC advises that an initial review will be conducted and available by early August 2010.

Consumers who want to repay their debt through a DMP can truly benefit from this new hardship plan, especially those with a very tight monthly budget. Obviously a creditor would rather get some return than none and the efforts being put forth by banks show such as bankruptcy filings increase and creditors are reaching for new solutions.

To see if you qualify for a CTA DMP or a regular DMP speak to a certified credit counselor today for a free consultation and budget counseling session. Non Profit debt solutions are available to those serious about getting out of debt. A debt consolidation program can provide a lower monthly payment and interest reductions from 0 percent to 10 percent and have you debt free in five years or less. Speak to a certified counselor about your options and long term financial goals at 800-905-1563 or visit our website freedomdm.org and complete our application. You can also utilize our LIVE CHAT feature and speak to a live counselor online with no obligation.

Unemployment Rate Unchanged @ 9.7%

2010-03-05T12:15:00.000-05:00

Job losses were mild in February despite extreme snowstorms in much of the country, according to a government report released Friday, suggesting that while the labor market remains weak it is no longer getting worse.

Read the full story on Washingtonpost.com

Improve Your Credit with a Secured Credit Card

2010-02-25T13:35:00.000-05:00

Sadly, Visa is now accepted in more places than cash. Millions of credit cards are being used daily for purchases. Visa, MasterCard, & AMEX, are in just about every household worldwide and the trend is not going to die anytime soon.

There are people though who do not have the means to obtain a regular credit card, be it a lack of credit in general or too much bad credit combating the application process. Here, a secured credit card can come into play as an asset to building your credit rating and history.

A secured card works just like a regular credit card with the exception of having to deposit your own funds initially to open the account and utilize as available credit. Some banks require a minimum amount be deposited to obtain a secured credit card while other banks simply do not offer the option. The average deposit requirement ranges between $200 - $500. Whatever amount you decide to deposit will be the available spending amount for the secured credit card.

Just like a regular credit card, a payment is due each billing cycle and interest fees are applied to purchases and cash advances as applicable. Yes, this means you will be paying interest to spend your own money. While this may seem asinine, for some consumers it is the best way to build a good credit score or help combat a bad credit rating.

It is a good idea to know who you are getting into bed with before making any commitment. You could say the same about establishing credit with big banks. There are some things you want to consider when shopping banks for a secured credit card. Terms and conditions are just as applicable and enforced as they are with regular credit so it is important to see what you will be facing after the honeymoon phase.
Fee Fi Fo F… What are the fees for the secured credit card?! Is there an activation fee? Is there an annual fee? Is there a fee for speaking to a customer service rep? Will you be charged for inactivity if you do not use the card one month? Payment processing fee? Make sure your initial deposit is not eaten alive by enrolment fees, etc. Secured card fees can add up quickly so watch OUT!

Get interested in interest: Check the interest rate before signing any tri-folds and make sure the rate is not going to detonate after a certain promotional time frame or period. Obviously, look for a low interest rate and compare rates. AND…make sure it is in writing.

Read between the lines and the lines between those. Those 3 font tri-folds were not developed on accident. Most banks make it difficult and irritating to read all the terms and conditions, usually in an attempt to sway you away from reading the terms definitively.

Apply accordingly. Try not to apply for too many secured credit cards. One or two will suffice. Going overboard could cause your credit rating to decrease instead of increase over time. To spell it out, applying for too many secured cards is contradictive to the mission of building better credit.
Checka checka check it out. Ok. So you have your fancy secured credit card. You are done cursing about the fees and using your own money to establish credit and have come to terms with your position in the credit game. Now we need to make sure someone is keeping score.

Be sure to check your credit report a couple months after establishing the secured account. The account should be reporting to the credit bureau and positing with all 3 credit reports. If not, contact the lender and find out WTF the problem is and how they can fix it – ASAP. If possible, it is a good idea to find this out before establishing the account. Honestly, if the activity is not reported to the credit bureau on a consistent basis the effort is then a waste.

There are many ways to build a better credit score. A secured credit card is just 1 of a few ways a consumer can begin to establish credit or rebuild a bad rating over time. Consolidating unsecured credit cards can also help combat bad scores and help improve credit over time. Unsecured accounts consolidated with a non-profit receive a lower fixed interest rate and usually a lower monthly payment. This enables a consumer to pay off their credit debts at an affordable cost and a decent rate, lowering the debt amounts faster and establishing a positive consistent payment history. Utilizing both can accelerate your efforts to build a better credit score and help you be debt free from unsecured debts. Contact a certified credit counselor at 800.905.1563 or visit our website for more information about debt consolidation and building a better credit score.

Exacting Revenge On Credit Card Companies

2010-02-24T12:35:00.001-05:00

Just because the new CARD Act is operational, consumers shouldn't count on the rules for protection. If anything, it's more important than ever to comb through each statement to thoroughly understand what's going on, because there are lots of loopholes that still exist for the card companies. (Warning: there's still likely to be plenty of fine print (think 401 (k) prospectus!), so make sure you have a magnifying glass and some time to plow through the information.) Read the full story at cbsnews.com

Debt Consolidation Dodges New Credit Card Law

2010-02-16T11:13:00.000-05:00

New regulations are being finalized and you’ll want to take your current account terms and conditions into consideration. A lot of creditor terms have changed in the last few months so it is important to be aware of what to beware of.

Take these five tips to keep your financial health in good condition and avoid the fever of February 22nd.

ONE. Don’t apply for new credit until March 1st. Let Feb 22 pass, allow creditors to get all their fancy new terms and conditions into place and go from there. New accounts will be protected from interest rate increases for the first year open. Good credit consumers can still get a deal on a credit card; it will just be a harder find.

TWO. Not that I encourage robbing Peter to pay Paul, but this may be the time to consider balance transfers. If you are consistent with your payments and follow your due dates from the dotted i to crossing the T, balances transfers may be a viable option for you to move high interest rate credit debt to lower rated cards. Make sure you read the T and Cs on balance transfers before executing. You will want to note how long the transfer rate will last, what the rate will be when the promotional plan ends, and what default repercussions you may incur should you miss a payment.

THREE. Keep an emergency card handy, one you do not use on regular purchases. Check your creditor terms though as some creditors are now issuing an –inactivity- charge for people not using the card.

FOUR. Make minor purchases with the cards you carry and try and pay off that monthly balance each month along with anything additional to the outstanding balance. This will help you avoid inactivity fees and the possibility of a creditor closing your account for not using it.

FIVE. Credit is no longer for kids- directly anyway. College kids will now require a co-signer of someone 21 years of age or older if they are not themselves. The young adult may also be required to show proof of the ability to pay the debt. Taxable income- allowances not included, sorry. If you are not of age you will need to find someone who is. Lean on a relative or friend you can trust to co-sign. Their credit rating will be on the line so make sure it is someone solid in your life.

No matter the disguise, consumer treats always come with creditor tricks. The new Credit Card Act was to be put in place to help protect consumers but it unfortunately will also further enable big banks to create new rules and fees to follow. A debt consolidation plan will allow you to keep one account open for emergencies and consolidate your other accounts to help you get out of debt faster and at a much lower cost. With a non-profit agency, your creditors reduce their finance charges to fixed rates, stop late and past due fees and usually accept a lower monthly payment. This enables consumers to not only pay off their debt at a faster rate, but to also help build a better credit score by ensuring timely monthly payments and paying down their balances faster.

The credit game was not designed for the consumer to win. If you are ready to call it quits and consolidate your debt call one of our certified credit counselors today for a free confidential consultation. Our BBB rated A+ service has helped thousands of consumers get out of debt and build a better credit score. Visit our website freedomdm.org or call 800.905.1563 for a free quote.

Non-Profit Budget Counseling & Debt Consolidation

2010-02-09T15:20:00.001-05:00

If you are looking to get rid of your unsecured debts there are many debt management options available today that can help you be debt free.

The first thing that should be reviewed and covered with a certified credit counselor is your household budget. Also referred to as a financial analysis, a household budget outlines your debt to income ratio on a monthly basis along with an accounting of assets and liabilities. A reputable company covers your monthly budget for two main reasons.

An agency that has your best interest in mind wants to ensure they can provide an affordable payment that not only fits your budget but also falls on a date that works with your pay scale and other monthly obligations. Knowing what you have to work with and what type of payment is affordable ensures a successful completion from the start.
Some creditors require an agency to provide a financial analysis with the proposed payment plan to be reviewed for optimal benefits. A detailed financial analysis can help a creditor definitively assess where their card holder is currently at and how much help they really need in the reduction of fees and interest.

In contacting an agency they should offer a free budget counseling session before any commitment is made from the client. If this service is not provided you are most likely dealing with a profit agency that does not have your best interest at hand. Best to check them out with the BBB and ensure they are in fact a reputable company.

Debt Management has branched off into different means of eliminating debt, mainly debt consolidation and debt settlements.

So which one is for you? Knowing where you are currently at and where you want to go will help you better understand how you can reach your financial goals.

Current, paying more than the minimum at high interest rates.
Current but paying minimums and not seeing balances drop.
Living off credit cards and near max out on accounts.
Behind by 1-4 months.
Behind by 5 or more consecutive months.
All accounts in collections.
Unemployed and unable to make payments.
Considering bankruptcy.

Scenarios 1-4. If this is you, a consolidation program – not a settlement program – is probably more beneficial to you. A consolidation program makes payments to your creditors each month as your payment comes in and clears. The consecutive monthly payment plan keeps you current or can bring you current if you are a few months behind, helping improve your credit score over time. A consolidation program also reduces interest rates to lower fixed rates than what most people are currently paying. If you are behind a few months the late, past due, and over limit fees stop once the accounts are enrolled into a program. The stopping of fees and reduced finance charges allows more of your monthly payment to go towards the outstanding debt, principle balance, rather than the creditor fees each billing cycle. This helps you pay off your debt faster and rebuild your credit score with consecutive monthly payments.

Scenarios 5-8. If you’re behind more than 5-6 months chances are your creditors have ‘charged-off’ the debt as a bad debt. Whether you pay this debt or not, this charge off status reflects negatively on your credit for SEVEN years. At this stage the accounts have probably been referred to or sold to a collection agency or could be facing legal measures to satisfy the debt. A Settlement program only pays back a fraction of the debt, settling for a reduced payback amount. A settlement can only be negotiated on accounts that have already charged off. This is why it is not an option until your accounts are 5-6+ months past due. A settlement plan will have you make monthly payments to them and place funds each month in a trust account. This is done to build up a reasonable amount of funds to negotiate a settlement amount that the creditors will accept. Your payments do not get sent monthly to your creditors and collection calls usually continue until the debt is settled on by the settlement agency. Any amount settled on over $500 is also considered taxable income the following tax year. Because the accounts have to charge off, a settlement program can have an adverse affect on your credit for 7 years.
Assessing a budget plan can help you determine what you have to work with so you can begin weighing your options. Try finding a non-profit agency for a free budget counseling session and always check out the reputation of the agency with the bbb.org. If you need to run your credit report annualcreditreport.com will provide a free credit report once a year without signing up for any trials or giving any credit card information.

For more information on what options would be best for you please contact one of our certified credit counselors at 800.905.1563 or visit our website freedomdm.org. Rated A+ with the BBB, we provide an honest, affordable consolidation plan that has your best interest in mind. Get free from debt with Freedom Debt.

Credit Protection

2010-02-08T18:23:00.000-05:00

Safety measures you can take to protect your credit.

Credit CARD Act: What You Should Know

2010-01-28T14:03:00.000-05:00

The credit card reform bill, Credit CARD Act, gets under way February 22, 2010. This legislation is designed to help consumers but like any other bill there are loopholes big banks will jump through to make sure their pockets are nicely lined with your greenbacks.

Here we go loop de loo.

No cap on interest rates. NO…CAP. Credit card companies cannot hike the rates on existing balances unless you are 60 days late on your payment, but they can raise rates on future purchases whenever they feel like it- justified or not. No worries though, you are sure to be advised of such changes to your policy. Unfortunately the advisement will come in the mail smudged in between and looking like junk mail in hopes you toss it out like another useless offer. If you do happen to open it have a magnifying glass handy. Just because they have to put it in writing does not mean they have to make the writing at a readable font size.

This notice is required to be sent within 45 days of the change. Lenders can instill the new rate within 2 weeks after the notice has been sent. You have options sure. Pay the new finance charges, pay your account in full every billing cycle, or stop using the credit card all together. Choices, but choices few in this current economic state are really able to amend to.

The CARD Act has thankfully stepped in and helped Joe Public by placing limits on the severity of penalty fees you can be charged. New fees however, can be created at any time with whatever charges they choose to implement. So lenders can sit around the table and make up new rules and what they justify are–applicable- fees to coincide.

How would you like a new annual fee for your account? How about being charged for the paper and ink to generate your statement that comes in the mail without the option of online billing? Have a card in the dresser for emergencies only? Inactivity fee, there ya go. A fee for not using your card.

Backing up the bus a bit, and right over the consumer mind you, card companies are allowed to raise existing fees. Balance transfers, purchases, cash advances, you name it. The only ones who are safe from this are those with fixed rates versus variable rates. This is a very small fraction of credit card holders and they are usually able to maintain a fixed rated because of a promotional plan or a consolidation plan with a third party non-profit. You MAY have HAD a fixed rate but recently many credit card issuers are switching that over to variable rates to do just this- raise fees on existing balances. You were probably mailed something about it, it just was presented as unimportant like junk mail and discarded.

Wait wait wait, it gets better. Some changes you do not have to be advised on. A creditor can lower your credit limit or close your account without warning. This silent killer can destroy your credit rating by increasing your outstanding debt amounts against your available credit limits. And then guess what? When your credit score goes down your next financial endeavor will be at a higher interest rate as you are now a liability in the lenders eye.

While the Credit CARD Act seems like a fine and dandy helping hand to consumers rest assured any Act that deals with big banks is not going to leave them in the cold so you can feel all warm and fuzzy. What options are there then? Stop using credit cards. A non-profit consolidation company will close your credit cards and reduce the interest rates and finance charges to lower, FIXED rates, rates that cannot be increased with this new Credit CARD Act. If you are ready and willing to close your accounts and not start this very viscous cycle coming consolidate and start improving your credit while paying your balances down faster at lower fixed rates.

For more information call our BBB Rated A+ non-profit financial counseling agency. We provide free budget counseling and a free consolidation quote to assess an affordable monthly payment in our program.

Call 800-905-1563 or visit our website http://freedomdm.org

- Michael Brazier

Something's Rotten In Our Economy and Obama's Gotta Fix It

2010-01-25T14:29:00.000-05:00

By Bradley Blakeman - FOXNews.com

There’s no question that our economy faced a financial meltdown in 2009. As we begin a new decade there’s also no denying that we are still feeling the consequences of that dire situation. Today we are still in desperate need of real oversight and regulation on American businesses that have become “too big to fail.”

Read the full story on FOXNews.com

Bradley A. Blakeman served in the administration of President George W. Bush from 2001-4. He currently teaches public policy at Georgetown University and is a frequent contributor to the Fox Forum.

Take Charge of Your Credit, Debt Solutions

2010-01-20T16:23:00.000-05:00

We charge up a lot of debt with credit cards and debit cards, but have you purchased with a charge card yet? Not a credit card. Not a debt card. Yes, a charge card.

The primary plastic pusher of charge cards is American Express (AMEX). AMEX charge cards require cardholders to pay off their balance in full each month and-or billing cycle. There is usually an annual membership fee for the charge card but no interest or other monthly fees like regular credit cards as the account holder is not able to hold an outstanding balance for more than the month it was charged on the account. This also, for the more disciplined, reduces the ability for impulse purchases and fast spending habits credit has graciously provided at the cost of your home and happiness.

AMEXs campaign –Take Charge- intends to capitalize on consumers consumed by annoying outrageous creditor fees. The way it goes, the campaign boasts the benefits of charge cards as a way to control debt during a period where such is much needed and desired by the average Joe. AMEXs goal is to spark that furious fire within consumers against harsh creditor fees and never ending debt.

As stated earlier, for the more disciplined, the charge card is not for everyone. Aside from being in control of your spending habits, in order to get a charge card you must show that you have a good history of controlling your spending habits. Yup, it takes credit to get a charge card and rest assured you have to have a pretty solid score to be approved by AMEX.

And then comes the fees. While you may not be charged interest monthly we brushed upon annual fees in the start of this. Annual fees can range from $25, to $40, to $450 and it depends on what card you choose from AMEX so read your terms carefully when applying. The good news? These fees also cover membership to the rewards program and additional perks per plastic.

One of the hardest things people have with using a charge card instead of credit is their spending habits and the realization of paying the balance in full each month. Like any other creditor, late fees will be applied to your account if the balance is not paid in full every month. AMEX late fees range from $35 to 2.99 percent of the balance (whichever is greater) …yikes.

PRO: Unlike the majority of credit cards, you have 40 to 50 days to satisfy your bill. Regular credit cards give 25 to 30 days for the billing cycle.

PRO: A flexible payment option is also available that allows you to carry a balance for travel purchases over $200. In this instance though, minimum payments and interest fees are applicable…so you may as well just consider it a credit card should you need to make payment options.

PRO: There are no cash advance options with a charge card. Foreign exchange transactions are charged a 2.7 percent fee. On the other side, Citi and BOA charge 3 percent.

Your spending limit is adjusted via your spending habits and AMEX monitoring your credit report. You are not advised what your cap is but can speak to a service rep for tips regarding your accounts and spending abilities.

Even though the rules of charging are different than credit the game is still the same when it comes to how your credit score is affected. Both are considered revolving credit on your credit report.

For the right person a charge card is a great alternative to –Take Charge- of ones credit and avoid incurring massive amounts of credit debt with credit cards. If you have a decent credit score and can be disciplined with your spending, check out the options available through AMEX charge cards. Consolidate your other credit cards for lower interest rates and get out of the credit game altogether. With raising rates and tougher terms maybe it is time we all took charge of our credit card woes. A charge card with AMEX can still help you build a solid credit history without falling deeper into debt with credit cards.

U2, Jay-Z, Rihanna to Perform at Haiti Benefit

2010-01-20T11:38:00.000-05:00

An impromptu supergroup featuring rapper Jay-Z, U2's Bono and the Edge, and Rihanna will take the stage at the MTV-produced Hope for Haiti benefit telethon, which airs Friday, Jan. 22, at 8 P.M. on all the major TV networks. Read the full story on SPIN Magazine.

FTC Video Debt Collection

2010-01-14T18:15:00.000-05:00

Pending home sales index plunges 16%

2010-01-05T11:25:00.000-05:00

WASHINGTON (MarketWatch) -- Pending home sales plunged a seasonally adjusted 16% in November as a highly popular tax credit for first-time buyers was set to expire on Nov. 30, the National Association of Realtors reported Tuesday. Read the full story on MarketWatch.com

Credit Counseling Debt Consolidation Does Affect Your Credit

2009-12-29T16:19:00.000-05:00

Most Americans are looking for a solution to absolve their debts and improve their financial health. In eliminating debt everyone has heard of the many alternatives in debt management. In joining these programs the primary concern most consumers have is how their credit score will be affected long-term. Debt management, debt consolidation, does affect your credit but it depends on what type of plan you go with. Knowing and understanding how each of these affects your credit can help you make an educated decision that coincides with your financial goals.

Consolidation Loan: Everyone wants to pay back less in interest and consolidation loans have provided a debt management plan for those who qualify. A consolidation loan provides a line of credit to the consumer in which all their other unsecured debts can be transferred and combined for the convenience of one monthly payment at one interest rate. The amount of debt you owe is not decreased but consolidated into one account to avoid paying various rates to various lenders. This doesn’t necessarily help improve your credit score as you are not decreasing the overall debt, but have taken on one great debt to zero out a few smaller ones. If you have good credit and are having a hard time keeping up with multiple statements and payments a consolidation loan could be beneficial. Run the numbers, see what the rate offered is for the loan and then see when that rate expires and what the default penalties are.

Debt Settlement: A settlement program is a debt management plan that also manages and consolidates credit debt into one monthly payment. The settlement agency makes settlement offers to the creditors on your behalf in an effort to have the outstanding balance reduced by 60-70 percent. In order to settle with a creditor for a reduced payback amount the debt must first be charged off. A creditor will charge off a debt after it has been delinquent for an extended period of time, usually 5-6 consecutive months. A charged off debt is a serious negative mark on your credit report and remains on your credit for seven years, regardless if the debt is paid back or not. Imagine you loan someone $5k and after a couple of years they only wind up paying you back $2500. Would you be willing to lend that person money again? Probably not and that is how most banks look at charged off debts. Someone concerned about their credit score or looking at purchasing a home or an auto loan in the next ten years may want to reconsider this option. For those who have debts in the rears for more than 6 months, the accounts are already charged off, and are looking at bankruptcy may benefit from a settlement plan versus bankruptcy or credit consolidation.

Debt Consolidation: Like other options, your unsecured debts are consolidated into one monthly payment and the debts are managed by a third party. A consolidation program negotiates rates and interest with the creditors, not the outstanding balance. This allows consumers to pay back the amount they owe but at reduced rates to allow more of each payment to go to the principle balance over creditor fees and interest. The interest rates are reduced to fixed rates, usually between 0-10 percent. The reduced fees allow the balances to drop faster, lowering the consumers overall debt amount at an accelerated rate. 30 percent of your credit report is determined by the total amount owed. Another 35 percent of your credit score is affected by consecutive payments. Therefore, a consolidation plan can actually improve your credit score over time with consecutive monthly payments and faster balance reductions.

Speak to a certified credit counselor for a free budget counseling session and credit consolidation consultation. An initial counseling session with a non-profit will help assess what your situation is, your long term financial goals and what option best suits you based on your specific situation. Call a certified credit counselor today 800-905-1563 or visit our website freedomdm.org for a free counseling session.

New Credit Card Rules Add Accountability

2009-12-28T11:46:00.000-05:00

What should you expect in 2010, and how can you put yourself in the best position to lessen the pain, or even profit from the changes? Read the story here...

Credit Debt Solutions: Understand the Different Options

2009-12-22T18:34:00.000-05:00

There are many different ways to eliminate unsecured debts and it is important to know how to differentiate between your options to make certain the one you have chosen best fits your needs and financial goals long term. We will outline the various ways available in the debt management market
.
THE LONE LOAN: A consolidation LOAN- not a plan or program – is a loan obtained to pay off all unsecured debts by consolidating them all into one loan for one rate and monthly payment. This can be effective for some people but the term –robbing Peter to pay Paul- comes to mind as all you are really doing is taking out another unsecured debt to merge a multitude of debts. Something to keep in mind as well, the rate of the loan. You will want to know and understand your default terms as most lenders take a delinquent or missed payment as an opportunity to increase your rates. Now you are back to square one.

SETTLE FOR LESS: Debt Settlements, ahhhh –debt relief…for the right person based on your financial situation and long term credit goals. A debt settlement program is another way to eliminate debt that utilizes similar terminology like, just one monthly payment, debt management, debt consolidation, and debt relief. A settlement program pays back the debt at a reduced amount from the original amount owed, usually between 30%-60% less. While this may sound appealing to everyone it is only beneficial to a certain few. In order to settle a debt it must first –charge off- A charged off debt reflects poorly on your credit for 7 years as a bad debt, paid in full or not. An account does not charge off until it has been delinquent for 5-6 months of non-payment. Collection calls are usually consistent and some creditors will still take legal pursuit to resolve the debt. When the debt is settled upon the difference is then considered taxable income the following year and the debtor is issued a 1099 form to claim the amount as taxable income.

If you have had a financial analysis on your monthly budget and are extremely over-extended a settlement plan may help you avoid filing bankrupt. If your primary concern is eliminating your debt and you have no major purchases to consider for the next 7 years then your credit score is not your primary concern and this could be the best available option for you.

CONSOLIDATE: Debt consolidation, credit counseling, can be beneficial for someone looking to stop using their cards and improve their credit over time. Like settlements and consolidation loans, the same terminology is used to describe the services. One monthly payment, debt elimination, debt management, consolidate your credit, etc. A debt consolidation plan allows you to pay back the total debt amount with monthly payments at reduced rates with the stopping of other fees. Most consolidation companies have agreements with creditors and established guidelines for minimum monthly payment requirements, which can be less the minimums you are currently paying. While making minimum monthlies in a consolidation plan the consumer is able to watch more of their monthly payment decrease the outstanding balance as the creditor fees stop once enrolled and the finance charges are reduced to fixed rates. Like the other plans it also allows the convenience of one monthly payment. A credit score can improve over time as 35 percent of your score is determined by timely consecutive payments. Another 30 percent contributes to the outstanding balance due between all accounts. With reduced interest the balances decrease much faster than if attempting on your own.

The accounts consolidated must be closed upon entering the plan but most plans allow you to keep one account open for emergencies. A consolidation plan can help increase your credit score with timely payments and eliminate your debt faster at reduced rates.

In doing your research you will first want to assess where you currently are with your finances, where you want to go, and how you will then get there. Going through a free budget counseling session with a certified credit counselor is a good start to help assess where you are currently at and what your options are. Working with a non-profit is your best bet and will help you avoid any extra costs going through a third party. A check with the Better Business Bureau of a company is always a good idea to see what type of reputation they have from previous clients.

Call 800-905-1563 to talk to a non-profit certified credit counselor today to explore what your options may be and for a free budget counseling session. You may also visit our website freedomdm.org and complete our online inquiry form for a counselor to contact you at a time you are available.

Credit Card's Newest Trick:

2009-12-18T11:03:00.000-05:00

By CANDICE CHOI (AP) – December 18, 2009.

NEW YORK — It's no mistake. This credit card's interest rate is 79.9 percent.

The bloated APR is how First Premier Bank, a subprime credit card issuer, is skirting new regulations intended to curb abusive practices in the industry. It's a strategy other subprime card issuers could start adopting to get around the new rules. Read the full story from the Associated Press

Budget Building Blocks

2009-12-15T18:16:00.002-05:00

It doesnt matter if you live check to check or make six figures, you need to know where youre money is going in order to maintain your financial health positively. People hear budget and see hand cuffs and restraints but in fact a budget can provide real financial freedom and even reduce stress. Knowing how much money you have and where it goes can easily be achieved with establishing a budget and sticking to it.

First, you want to establish where youre currently at, your debt to income ratio. As most of us are paid on a weekly or bi-monthly basis, this is best identified by a monthly breakdown versus an annual assessment. Start with your income.

How much money are you bringing in each month? You want to evaluate the net amount not the gross. The net amount is the amount received after taxes, social security, and any other deductions you may be incurring. An easy way to remember gross versus net: Its –gross- how much gets taken out of your check each pay period. You –net- what you take home, like what youve caught in a net. I like the gross taxes one myself, lol. Now, if you share household expenses with a spouse or roommate, etc youll want to account for their wages/contributions as well to properly coincide with your expenses.

Once youve established how much money youre bringing in youll then need to know how much money youre paying out each month. Start a list, beginning with the necessities: mortgage, rent, car note, insurance, medical, and any other bills youre required to pay each month at a standard rate. Then, start accounting for the expenses that are every month, but the amounts vary. These would include things like gasoline, utilities, food, etc. Estimate an average monthly amount on these based on previous months and old statements and receipts. Ok, so you now have accounted for your living expenses that are required to survive. Youll now want to assess what other expenses you incur every month in your day to day dealings.

Are you a smoker? Do you eat fast food? Order out? Shop online? Go to the movies? Get your car washed? Groom the dog? These miscellaneous expenses are usually what put people over the top but can easily be regulated with a solid budget. An easy way to identify what youre spending your money on is to check your previous bank statements and see what youve previously purchased with a debit card or visa transactions.

Adding up all your monthly expenses totals your monthly debt ratio. Subtract this number from your monthly income amount to see if you have disposable income remaining or if youre in the negative. Being in the negative means youre overextended and some adjustments need to be made to keep a positive debt to income ratio and avoid further financial conflicts down the road.

A certified credit counselor can provide a free budget counseling session and provide a free financial analysis to evaluate your budget and help find ways to cut some expenses and help you get back on track. There are tons of ways to cut costs and save on insurance plans, cell phone plans, etc that a certified credit counselor can advise on and help decrease your monthly expenses. Call one today at 800.905.1563 or visit our website freedomdm.org to learn more about budget counseling, debt consolidation, and how to improve your credit score. Our non-profit counselors are here to provide free advice and help you start building your financial future.

Fix Credit Fast? Forget About It

2009-12-07T14:56:00.003-05:00

It’s all very tempting, and you may toy with using these quick-fix schemes to boost your score. And why wouldn’t you? Bad credit can negatively impact your ability to rent an apartment, buy a home, or even get a job.

Read the full story on Military.com, Kelly Johnson reports...

What Our Founding Fathers Said About Credit

2009-12-03T11:24:00.003-05:00

History repeats itself and this is one of the most important reasons we should all know and understand our history, so that we do not continue making the same mistakes over and over…and over and over again…

Starting as early as the 1700’s in England, Central Banks were instituted to produce the currency of an entire nation. Based on historical precedent, two specific powers are inherent in central banking practice: the control of interest rates and the control of the money supply, or inflation. The central bank does not simply supply a government's economy with money, it loans it to them at interest. Then through the use of increasing and decreasing of supply of money the central bank regulates the value of the currency being issued. It is critical to understand that the entire structure of this system can only produce one thing in the long run: DEBT.

More recently, The Federal Reserve Act was signed in 1913 and the public was told that the Federal Reserve System was an economic stabilizer and inflation and economic crises were thing of the past. Well, as history has shown, nothing was further from the truth.

Here are what some great leaders have said throughout history regarding Central Banks. Some were contributors who in the aftermath gave great regret to their involvement or aide in instituting such on the people of their nation and creating economic slavery.

There is something behind the throne greater than the king himself”

-Sir William Pitt, House of Lords, 1770-

“The real truth of the matter is that a financial element in the large centers has owned the government since the days of Andrew Jackson”

-Franklin D. Roosevelt, US President, 1933-

“The refusal of King George to allow the colonies to operate an honest money system, which freed the ordinary man from clutches of the money manipulators was probably the prime cause of the revolution”

-Benjamin Franklin, Founding Father

“I believe that banking institution are more dangerous than standing armies… If the American people ever allow private banks to control the issue of currency… the banks and corporations that will grow up around them will deprive the people of their property until their children wake up homeless on the continent their fathers conquered”

-Thomas Jefferson (1743-1826)

“If you want to remain slaves of the bankers and pay for the costs of your own slavery, let them continue to create money and control the nation’s credit”

-Sir Josiah Stamp (1880-1941)

“Our Great Industrial nation is controlled by its system of credit. Our system of credit is privately concentrated. The growth of the nation, therefore, and all our activities are in the hands of a few men... who necessarily, by very reason of their own limitations, chill and check and destroy genuine economic freedom.”

-Woodrow Wilson

“We have come to be one of the worst ruled, one of the most completely controlled and dominated governments in the civilized world –no government by free opinion, no longer a government by conviction and the vote of the majority, but a government by the opinion and the duress of small groups of dominant men.”

-Woodrow Wilson

“Under the Federal Reserve Act, panics are scientifically created. The present panic (1920) is the first scientifically created one, worked out as we figure a mathematical equation.”

–Charles Lindbergh

“It was a carefully contrived occurrence, international bankers sought to bring about a condition of despair, so that they might emerge the rulers of us all.”

-Louis McFadden

“Give me control of a nation’s money supply, and I care not who makes its laws”

-Mayer Amschel Rothschild, Founder of Rothschild Banking Dynasty

We are in a very bad economic state and it looks like its getting worse. Without education and understanding of how all this started we can never finish it. Banks are creating NEW fees as the economy continues to crumble. Gift cards come with hefty fees and not all are created equal. Now, creditor firms are going to start charging for inactivity. Meaning, if you do not use your card you can be charged a fee. That’s right. Their justification for implementing this? To slow THEIR default losses. All these new banking fees being incepted while the nation is in its most vulnerable financial state in decades.

Its time to get out of debt people. Close your credit cards. Use cash. A certified credit counselor can help you create a household budget for FREE and review your credit card accounts to see if you could benefit from a debt consolidation plan and start ending this viscous cycle. Closing your cards and consolidating with a non-profit will lower the finances charges the banks are assessing and stop additional fees for delinquencies. You can be debt free, we can help. Call 800.905.1563 or visit our website freedomdm.org. Financial freedom for America starts with you and Freedom Debt Management. Were eliminating the nations debt one household at a time. Join us.

Supreme Court to decide on student loans and bankruptcy

2009-12-02T14:04:00.002-05:00

Tuesday, Supreme Court justices considered Espinosa's case in a closely watched dispute that could affect debtors and creditors nationwide when student loans cannot be repaid. Read the full story on USA Today, Joan Biskupic reports…

Gift Card Fees Often Found In Fine Print

2009-12-02T11:23:00.001-05:00

Safe Holiday Shopping - What To Look For

2009-12-01T17:41:00.002-05:00

The internet has made it quite convenient for people to shop online and many are making purchases from the comfort of their home versus trying to tango with traffic and mill through mall mobs for their one day every day deals and sales offers. Time is money and consumers are making good use of their time by spending online. While shopping online has many great advantages, like anything else, it has its downsides.

Below, weve compiled some of the best online shopping tips out there to help you avoid any online headaches when making your holiday purchases. Follow these guidelines and you may just end of saving more time and money.

ONE: Cater to credit and discard the debit. Using your debit card may seem more convenient and thrifty, avoiding creditor fees, etc but many banks are now assessing more fees to debit card charges than the difference youd pay in interest. More importantly, should you become a victim of identity theft your entire bank account could be drained using a debit card vs a credit card. Also, banks have made it more difficult to recover funds from debit fraud than credit card disputes.

TWO: Trace your transactions. Most online purchases provide a print option from the purchase confirmation page. This is a great tool if everyone had a printer, ink cartridges were half the price of a new printer, and or we wernt conservatively trying to save the planet. A better option is to take a screen shot of the confirmation page and email it to yourself, creating a folder on your desktop or in your email account labeled receipts. This is also ideal to do with your monthly bill pays. Ever so often an online payment may not have ‘processed’ and creditors are quick to hit you with a feee. If you screenshot and document all your online transactions you’re creating an E-trail to reference should something arise later regarding your purchases or payments.

THREE: Watch UR URLs. Number one / if you receive an email from an unknown source asking you to click through delete it. Delete it and permanently delete it. Most viruses are spread by email. Some gimmick about some fantastic deal that weve all fallen for. Along with email there any many phantom sites that mirror legitimate sites to make people think their on the official page and BAM! You’ve voluntarily given all your payment information to a hacker. Most of the bogus emails we mentioned earlier are directed to sites like these. You can identify these bogus bad boys by checking the url at the top (the web address). If it says http:target.com/sales/567/ghuytns%?wef or has sort or weird extension- get out of there asap. Also, you can indentify a secured page versus a non-secured page by checking the http at the beginning of the url. A secured page will have the http with an s, like https:// this ensures the information youre submitting is on a page protected page.

FOUR: Shop shipping and service fees. Surprisingly enough, some sites will allow you to make your purchase and enter your shipping details in anticipation of a swift delivery while they do not physically have the item in stock. They could also be a middle man with better online presence and have to order from the manufacturer as orders come in. This can really slow down your delivery and are often the case when you hear those horror stories of kids not getting their presents xmas day…not that its all about the presents right? ….Anyway, make sure the item youre purchasing is ‘in stock’. Look for shipping guarantees and read their policies. Skim the policy if you must but get the main points before clicking their buy now buttons. Become knowledgeable of their return policies and all their fees too. Sometimes the shipping and handling fees outweigh the savings you could have gotten going to the store yourself.

FIVE: Spend your dime on your time. Please…don’t shop online while youre at work. Its bad enough were all face-booking during business hours and writing it off as –company networking- hogwash. Those employed should be very thankful to be in such a position as the current state of the economy plummets while unemployment rises. Losing your job and income because you were spending it at an inappropriate time is somewhat of an oxymoron. The movie Friday comes to mind…How ya gonna lose your job on your day off?! Keep the income coming and spend your dime on your own time.

Remember to always budget before buying. Know what you have to spend in accordance with your regular monthly bills. With proper money management you can easily avoid going overboard for the holidays and falling behind. For a free budget counseling session call one of our certified credit counselors 800.905.1563 and learn even more effective ways you can save money and be debt free with Freedom Debt Management. We are a non-profit financial counseling organization rated A+ by the BBB for educating America and helping people become debt free.

Economic's Downturn Impact On Average Americans

2009-11-30T14:48:00.001-05:00

Are You Ready To Be Debt Free?

2009-11-30T11:13:00.002-05:00

Fix Credit: Dispute Negative Info on Your Credit Report

2009-11-19T17:46:00.002-05:00

You as a consumer have rights under the Fair Debt Reporting Act to dispute negative information contained in your credit report. You can dispute negative or falsified information on your credit report by writing a dispute letter to the credit bureau that contains the negative blemish. This can usually be done online as well, while youre reviewing your credit report. Free credit reports are available through sites like annualcreditreport.com and disputes are enabled through a simple click through feature per each entry on the report. Once a dispute letter has been mailed or submitted online the law then requires the credit reporting agencies to take action for the consumer by conducting an investigation of said issue.

With these easy to follow steps you can easily write an effective dispute letter to the credit bureau.

Obtain your credit report: You can obtain a free credit report once a year or if you have been recently declined credit. Annualcreditreport.com provides a truly free credit report that can accelerate the process of sending snail mail. I mean, it is 2009…Order a copy from all three major credit bureaus. Experian, Equifax, TransUnion.

Become Sherlock Holmes: Read through your report with a fine tooth comb…or a slow scrolling mouse…Look for falsified information that may indicate you have been a victim of identity theft. Check the history of revolving accounts for false details, negative statuses, and outdated remarks that may be eligible to be removed.

Specify the items in dispute. Be very specific as to what item youre referencing and as detailed as possible as to what the dispute involves. If you have to use snail mail, send a copy of the credit report along with your dispute, circling which mark is being referenced. Online users can take a screenshot of the online credit report.

Separate the masses: If youre disputing several items youll want to send the disputes individually. As tricky as credit can be you have to imagine the men behind the curtain arent over willing to make that extra effort and sift through pages of email gripes or a manila folder as thick as a bible pointing out mistakes their organization has posted. Make it easy on the credit bureau to review each dispute individually. This is more to your benefit than theirs, trust.

Play nice: CAPPING every word isnt going to come off as cordial. As upset as you may be that you have erroneous marks on youre credit its best not to express yourself as a demanding impatient tyrant. Make your dispute personal and professional. Be polite. They can –read- your smile, lol.

Just the facts maam: Were not writing novels here. These are dispute letters. A definitive, professional, polite, one to two liner dispute per item. You have your goal, stick to it and lay out the facts. Point out the errors and request corrections and confirmations.

This is America! Keep in mind that you have the right to dispute marks on your credit report. Credit bureaus are required to investigate your dispute and can take up to 30 days to research and reply with the outcome of the investigation.

Follow up: Upon completion, you will receive a letter or copy of your credit report that shows their findings from the review. Should you not receive a response after 30 days send another letter reminding them of their obligation to respond and satisfy your submitted dispute. If you do not receive a reply thereafter your next step is to contact the FTC and file a formal complaint against the credit bureau. In the few cases where it escalates to contacting the FTC the disputed items are usually removed immediately for negligence and lack of evidence to support the negative mark.

More Help: If youre credit report looks like gibberish a non-profit credit counseling agency will usually review your report with you for free over the phone, via email, or in person should the service be local. Contact our certified credit counselors at our BBB Rated A+ non-profit credit counseling agency for a free review of your credit report and more helpful information to get your credit back on track. We help people fix credit scores and reduce debt through free financial information and debt elimination programs. Get on the road to financial freedom with Freedom Debt Management, 800-905-1563.

www.LoanScamAlert.org

2009-11-19T12:56:00.001-05:00

1. A company/person asks for a fee in advance to work with your lender to modify, refinance or reinstate your mortgage. They may pocket your money and do little or nothing to help you save your home from foreclosure.

2. A company /person guarantees they can stop a foreclosure or get your loan modified. Nobody can make this guarantee to stop foreclosure or modify your loan. Legitimate, trustworthy HUD-approved counseling agencies will only promise they will try their very best to help you.

3. A company/person advises you to stop paying your mortgage company and pay them instead. Despite what a scammer will tell you, you should never send a mortgage payment to anyone other than your mortgage lender. The minute you have trouble making your monthly payment, contact your mortgage lender.

4. A company pressures you to sign paperwork that you haven’t had a chance to read, and you don’t fully understand. A legitimate housing counselor would never pressure you to sign a document before you had a chance to read and understand it.

5. A company claims to offer “government approved” or “official government” loan modifications. They may be scam artist posing as legitimate organizations approved by or affiliated with, the government. Contact your mortgage lender first. You lender can tell you whether you qualify for any government programs to prevent foreclosure. And, remember, you do not have to pay to benefit from government-backed loan modification programs.

6. A company/person you don’t know asks you to release personal financial information online or over the phone. You should only give this type of information to companies that you know and trust, like your mortgage lender or a HUD-approved counseling agency.

Consumer Rights Against Unfair Collection Practices

2009-11-17T16:38:00.001-05:00

Education is empowerment. The pen is indeed mightier than the sword and knowing your rights against harassing collection calls could not only save you stress and aggravation, but possibly some pocket change.

If you’ve ever been late with a credit card payment you understand how aggravating collection calls can be. Most of these cold call collectors make minimum wage with high commissions for payments they receive from consumers by making idle threats and sometimes falsifying information, exaggerating the severity of the delinquency and the consequences to follow. Most consumers don’t realize this though and think that the threats are real and their tactics are legit, mostly due to inflicted guilt and fear for already being late in the first place. So how can you tell when a collector has extended their power against your rights as a consumer and is breaking the law? Well, by research! But were going to make it real easy for you with these easy basic guidelines to look for and understand when dealing collection calls and creditor harassment and your rights under the Fair Debt Collections Practices Act (FDCPA).

First and foremost, a collector may only contact you at a time reasonable and convenient for you. An assumable acceptable time frame is considered between 8am and 9pm. You shouldn’t be receiving calls to collect on a debt before then or after. To further, if a collector calls you and you advise them that -this is an inconvenient time- they must abide by said advisement and adjust their tactics accordingly. In addition, during working hours you can advise a collector that you cannot receive calls at work. After this has been documented with your verbal advisement, additional efforts made during your business hours is in violation of your rights under the FDCPA.

Skip tracing. This is when a collector uses outside information obtained from third parties in an effort to establish contact information. In no instance are they permitted to disclose to family member, friends, neighbors, etc WHY they are calling or demean you in any way .

The degree of harassment is broad but there are certain limits to their efforts in accordance with your rights. Oppressive or abusive behavior, the threatening of violence or criminal acts, and use of profanity and obscenities are violations of the Act.

A collector must identify to you their name OR name of employer, reason for the call and your Mini-Miranda rights before going into the collection effort. An example of what the Mini-Miranda act should sound this:

This is an attempt to collect a debt. Any information will be used for that purpose. If you dispute the validity of this debt you have 30 days to notify us of such

If you are not provided the Mini-Miranda at the beginning of the call the collector is quite possibly in direct violation under the Act. Kindly get their name, company name, and any other information you can to document and advise that they are violation of your rights under the FDCPA.

Collectors are not permitted to provide falsified or misleading statements in an effort to collect a debt. Mass produced collection letters not reviewed by an attorney prior to mailing are considered false and deceptive. False affiliations such as claims of being an attorney or connected to the government or IRS are also violations.

You always have the option to dispute the debt as well in the initial contact. Request they send written documentation to validate the debt. They then are required to send proof of the debt within ten business days. Upon receipt, you are entitled to dispute the debt in writing within 30 days. If they cannot provide proof of the debt within the allotted time it can then be disputed directly to the credit bureau for removal off your credit report.

Having your debts managed by a debt consolidation company can also stop harassing phone calls, creditor fees, and fix credit over time. For more information on how you can protect yourself from harassing collection tactics email me or visit our website. We’re a non-profit credit counseling organization recognized by the BBB as an A+ business. To speak to our certified credit counselors call 800-905-1563.

Foreclosure Prevention Seminar: 11.21.09

2009-11-10T18:07:00.003-05:00

Build Your Credit Without Using Credit

2009-11-10T12:57:00.001-05:00

Getting a decent rate on a mortgage or car loan depends on having a good credit score. Even rental applications or employment is contingent on credit. The ladder is to pay out the wazoo in down payments, security deposits, etc. While you need a good credit history to make your mark with the creditors, you don’t need plastic to do so. Start improving your credit without using credit. Take these steps in building your credit score without actually using credit and learn what to watch for in the future to avoid damaging your credit you’ve worked hard to build.

ONE: Check out a credit union for a secured loan. A secured loan, or shared-secured loan, is backed by money you place in a credit union savings account or certificate of deposit. Credit unions are usually easier to work with than the big banks as they take into account more than just your credit score when applying for a loan. They also look at things like a good checking history or that youre making an effort to deposit money into savings. Make sure the credit union you choose is reporting to all three major credit bureaus. Some credit unions only report to one of the three in an effort to save money.

TWO: Peer-to-peer loans. No, this is not about going fishing. Social lending sites like Prosper and Lending Club connect interested borrowers with individual investors. In this, investors bid on the borrowers applications and attempt to offer the lowest, most competitive interest rates to win the deal.

THREE: Getting schooled? Apply for a federal student loan. Being a student can be advantageous to your credit score if executed properly. Federal student loans do NOT require credit checks. The stipulation is that you have to be at least a part time college student and have submitted an application for Federal Student Aid. Stafford loans have a fixed interest of 6.8 percent and they do not inquire on your reason for financial need. Once the loan hits repayment mode, your on-time payments will help boost your score.

FOUR: Piggy back your partner. Become an authorized user on someone elses credit card. Once added, their history with that specific account is usually imported to yours with the 3 big bureaus. Pick someone who has decent credit or this could turn around and affect you negatively. Youll want to choose someone who has an account that has less than 1/3 of the balance due at all times and pays on time consecutively each month. All your asking is to become an authorized user, not actually use the card or receive a duplicate of the card for purchases.

FIVE: Co-signing. Four and five depend on relying on others so don’t go burning bridges or chasing waterfalls. Make sure these are solid relationships like a parent or spouse. A co-signer can help you lock into a loan you may have been denied for applying by yourself. In a co-signee arrangement, both parties are equally responsible for the debt. Make sure payments are made timely and consecutively to ensure a positive increase to your score on a monthly basis.

SIX: Pay to play. Establishing a secured credit card is now getting into actually using credit. If youre anti plastic and just looking to build your score, opt out of this option and save yourself a paragraph. Secured cards require you to make a deposit with the bank equal to the amount of credit youre looking to deposit. Some banks will allow you to receive a secured credit card for only $200 while others require a bit more to play the game. Youre basically taking your money and creating a credit account equal to the amount invested and paying interest on purchases. Some creditors will convert the account to a regular line of credit after 9 months or a year of positive paying.

SEVEN: The Charge card cha cha. Charge cards like American Express require the account holder to pay the balance in full every cycle. If you already have good credit and are simply trying to keep it going in that direction this is a positive way to ensure youre doing just that without having to use credit cards. If you have little self control you may want to think twice about charge cards.

Using these guidelines can keep you out of the credit loop while still playing the game. If you have already incurred credit debt it’s a good idea to pay it down asap and restructure your spending habits whereas the use of credit becomes obsolete.

Non-profit debt consolidation companies like Freedom Debt are around to provide consumers budget help and debt solutions. By consolidating your credit you can payback what you owe at reduced fixed interest rates, allowing your balances to drop faster than paying minimums at high rates. For more help on how to improve your credit or for a free budget counseling session or debt analysis contact one of our certified credit counselors by visiting our website freedomdm.org or calling, 800.905.1563. Were here to help.

Non-Profit Debt Solutions

2009-11-03T18:34:00.003-05:00

Currently, the average consumer has a credit card with a credit line of at least $4000 and about a quarter of Americans admit to maxing out at least one credit card. Obviously, people are in need of simple solutions to sooth the burdens of being buried in debt. A non-profit debt consolidation program can very well be the answer most consumers can look to and afford for debt relief.

The average consumer today carries about 3-5 credit cards, each with their own outstanding balance, creditor terms and fees, due dates, and varied billing cycles. A non-profit debt consolidation organization negotiates these terms with each individual creditor on behalf of the account holder to reduce interest rates, stop late, past due, over limit fees, and usually a lower monthly payment. In obtaining the best rates for the account holders, the non-profit org consolidates all the accounts into one monthly payment and the account holder then sends one payment each month to their consolidation agency to be disbursed to each individual creditor under the modified terms working through a non-profit organization.

This allows the consumer the following benefits:

Convenience of one monthly payment with a due date specified by the client.

A reduction in interest to a lower, fixed rate so that the debt can be paid back within a five year time frame, allotting the majority of the monthly payment each month to be applied to the principle balance versus the creditor fees.

Relief from harassing collection calls and creditor harassment.

Re-aging of accounts |certain creditors only |after a specified amount of time so the consumer can begin to report current |if they were past due | without paying the additional late fees.

Consecutive timely monthly payments to help improve credit rating over time.

A true non-profit organization begins their consultation with a free budget counseling session outlining and assessing your debt to income ratio on a monthly basis and reviewing assets versus liabilities. This is also known as a financial addendum. Some creditors require this information for enrollment in a consolidation program and others even base the interest reduction on said information. A non-profit agency usually receives better rates with the creditors on behalf of their clients as creditors acknowledge the educational process of the consultation and appreciate the non-profit ensuring a client not only understands their financial obligations, but ensures the programs success with the budget analysis, qualification process.

The mission of a good non-profit is not to charge you exorbitant fees for their services, but to get you out of debt and provide free educational information to ensure consumers do not make the same mistakes in the future. Remember that class in high school about how to manage credit card debt? Neither do we, because it didnt and still does not exist to this day. The American consumer is only partial to blame, so don’t be too hard on yourself. And remember, you certainly are not alone in this credit debt debacle.

Here are a few good tips when shopping for a debt consolidation service to ensure your best interest is at hand and not the agency lining their pockets.

Check the company out on the Better Business Bureau. You can usually search for a business by zip then name of the organization,. The company website should have contact information including a physical mailing address. If not, this should be your first flag to stay clear.

Are they listed with the BBB?

What is their BBB rating?

Do they have complaints?

If so, how old and were they resolved or ignored by the company?

What type of fees do they charge for their service?

Does the first payment go out to the creditors? Every payment less their nominal monthly fee should go out as received and cleared from client.

How much is the monthly service fee? This really should not exceed an average maximum of $5 per account enrolled. Again, maximum…

Are there any pre-payment penalties if you are able to pay the debt off early? The answer should be no. You shouldn’t be punished for finishing ahead of schedule.

Are there cancellation fees? You’ve entered the program voluntarily and your exit should be the same. A true non-profit usually will not charge a fee for cancelling before completion but most creditors take it as an opportunity to reinstate your original rates, justifying it as a ‘program default’.

Debt consolidation is a great solution to getting out of debt and maintaining a positive credit score. However, consolidation is not for everyone. You have to be ready to stop spending on your accounts; credit cards are closed once they are enrolled in the program so spending on them is no longer an option. Remember, the point of a non-profit debt consolidation program is to get out of debt, not incur more. In addition, most creditors require that all accounts be enrolled into the program less one major credit card for emergencies. No, your Victoria Secret card cannot be left out for emergencies. Retail accounts are usually first to go and with good reason, their rates are usually much higher and some even extend billing cycles past the average 30 day cycle to further the applicable interest amounts. Yup, check your terms, its usually right there in that 2 size font, paragraph 86, line 1 million 524…

Seeking a company that provides real debt solutions is a job in itself. Good non-profits require their credit counselors to be certified and maintain their certification for continuing education as creditor guidelines and state practice regulations change frequently. They are also usually affiliated with an organization like ISO or AADMO. A true non-profit will also offer free budget help and a free debt consultation without any consumer commitment until they fully understand the program and recognize the potential savings to come with the enrollment. For more information feel free to call 800-905-1563 or visit our website, http://www.freedomdm.org

Free Financial Literacy Guide

2009-10-30T13:14:00.004-04:00

We're offering our free financial guide by Fannie Mae to anyone who wants to verify their name and address to be mailed the free financial booklet. Your information will not be sold or used for any other reason.

Knowing and Understanding Your Credit is a 28 page financial guide to help consumers better understand their monthly finances and effective credit management. It provides credit report review advice and a mini financial addendum to help assess and create a household budget.

Our non-profit org is dedicated to helping consumers get out of debt and provide free financial information to anyone interested in bettering their financial situation or is looking to improve their credit to purchase a home or vehicle in the next five years.

Please email me your name and mailing address for your free copy of Knowing and Understanding Your Credit to be mailed out with no obligation or further contact unless requested otherwise. Again, this is a free booklet and your information will not be sold or used for continued marketing efforts.

Freedom Debt Management, Helping America Become Debt Free One Household At A Time.

How to Improve Your Credit, 5 FICO Steps

2009-10-29T16:07:00.006-04:00

Credit is serious business and its tied into every aspect of life. Your credit is checked for everything these days. Car loans, rental property, even jobs now are running credit checks for employment eligibility. Improving your FICO score and fixing your overall credit is no easy task. Like losing weight, repairing your credit takes time. It took you a while to chunk on those pounds and itll take just as long, if not longer, to slim back to skinny. Debt works the same way. Nothing gets fixed overnight regardless of what most profit based companies advertise.

Your credit score is determined by the following entities.

Payment history = 35 percent

Amounts owed = 30 percent

Length of credit history = 15 percent

New credit = 10 percent

Types of credit = 10 percent

Taking account of what really affects your credit, these get fix quick claims become just that- claims. The best advice is to manage credit responsibly over time. Following the order above, we can break down each entity of the credit score factors to help better assess how to really improve your credit and not get scammed into paying profiteers for promises that probably wont pan out perfectly. Ready? Get excited!!!

Paying your bills on time accounts for 35 percent of your credit score! Delinquent payments and accounts with collection agencies can place a major negative impact on your credit rating. This step is crucial and requires a lot of attention and discipline on a monthly, consistent basis. Stay current. The longer you pay your bills on time the better your score will be.

Amounts owed takes 30 percent, noting the second biggest factor in your credit rating. Keep your balances low. Just because a bank gave you a credit line of $5k doesn’t mean you should spend $4,987.67 and pay the minimum monthlies. Balances exceeding 50 percent of your available credit per account can take your score down quickly. Don’t rob Peter to pay Paul either. Moving debt around doesn’t help your credit score.

The length of your credit history takes third place in priority, accounting for 15 percent of your score. Don’t try and open too many accounts at once in an effort to build credit. Newly opened accounts can lower your average account age and can greatly effect your score if you dont have a lot of other credit information.

New credit takes 10 percent. When you decide to establish new credit, shop your rates and loan options within a controlled period of time. Completing loan and credit applications over weeks at a time can reflect poorly and drop your score. If youre shopping for deals, do it within a certain time frame and lock down your options, comparing rates and fees for services.

Lastly, you need a little credit variety in life...just like a diet and dining. Apply for new credit accounts only as needed. Just to note: Getting the new xbox360 is not a need…says my wife. Opening new accounts and spending on them just to establish new credit doesn’t raise your credit score. Paying timely on your installment loans and combined credit cards will raise your score over time coinciding with the above factors.

A debt consolidation program allows consumers to pay back their debts at lower rates and with the convenience of one monthly payment. The reduced interest and stopping of late and past due fees allows the consumer to bring their balances down and creates a consecutive timely billing cycle with affordable payments. By improving payment history -35- and bringing balances down -30-, a debt consolidation program can greatly help you improve credit while getting out of debt. Debt consolidation / not debt settlements. –write that down.

Freedom Debt Management is a non-profit organization rated A+ by the BBB for budget counseling and debt consolidation services. For a free budget analysis, credit report review, or consolidation quote to get out of debt, visit our website and speak to a live credit counselor, complete our short application, or call one of our certified credit counselors at 800-905-1563.

Debt Consolidation for $9.99

2009-10-29T10:09:00.001-04:00

Debt Consolidation for $9.99

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Creditor ABCs

2009-10-26T16:36:00.003-04:00

Like the rest of us, most consumers are having trouble paying their credit cards bills. With the crumbling economy and unemployment rates soaring its no secret why a lot of consumers are falling more behind on their unsecured debts. More bankruptcies filed this year show that problem isnt going away and most likely will not for some time. Bankruptcy though, should be considered a last resort. Theres still hope with debt consolidation.
A debt consolidation plan can be considered for the following situations;

Current on accounts and want to remain so but at lower rates

Less than 12 months behind on payments

Need to stop late, past due, and over limit fees

Stopping of harassing creditor and collection calls.

Looking to reduce balances owed at affordable rates

Avoiding bankruptcy and settlement programs to save your credit

Improving your credit score with timely payments and balance reductions

Developing a household budget, free budget counseling

The convenience of one monthly payment on a due date that works around your budget

A debt consolidation plan with a non-profit agency is always your best bet to avoid scams and profiteers looking to line their pocket from your financial misfortunes. Before committing to an agency, check them out with the Better Business Bureau. A solid non-profit will go over your financial addendum, household budget, to assess your debt to income ratio on a monthly basis. A certified credit counselor will then review your accounts to consolidate and help make an affordable monthly payment based on your budget and coinciding creditor guidelines for payments. Some things to realize about consolidating your debts:

Accounts enrolled are closed – no more purchases

Current accounts remain current and do not hurt your credit once enrolled

Late, past due, over-limit fees STOP once enrolled

Interest rates are reduced to lower, fixed rates

Collection calls stop

No additional payments will be required outside your consolidation program

Past due accounts can be brought current after a few timely payments to rebuild credit.

Creditors only require consecutive monthly payments for these benefits.

All creditors require accounts enrolled into a debt consolidation program to be closed so you cannot charge on them any longer. Remember, you’re looking to get out of debt- not incur more. If your payments have been on time prior to enrollment they remain so upon entering to ensure your credit score is NOT affected negatively. Creditor fees stop once the accounts are enrolled into the program and interest rates reduce down to fixed lower rates. With the stopping of fees and a reduction in interest rates, your balances are able to reduce nicely. Your monthly payment bringing the balance down helps improve your credit score and enables consumers to get out of debt within 4-5 years versus 20-30 years at your current rates and fees. A debt consolidation agency usually has a customer service department to handle your creditor calls and account inquiries. So, no more harassing collection calls either. Creditors only require the agreed upon amount negotiated by your consolidation agency. Those past due amounts will not be waived, but you will only be required to pay monthly whats been agreed upon on your behalf. If you enroll accounts that are already behind on payments most creditors have whats called a re-aging process. In this process, creditors will usually bring an account to a current, positive reporting status, after 4-5 consecutive monthly payments. This in turn, further assists your credit score increasing as you have more accounts reporting positive timely monthly payments.

While you may think the road to financial freedom can only be paved with bankruptcy there still may be help. Consultations on debt consolidation are free. Theres no obligation to receive free information. These benefits could be applicable to your situation and could possibly prevent tarnishing your credit with settlements or a bankruptcy. Call one of our certified credit counselors today for a free budget counseling session and debt analysis. 800.905.1563. If we cant help you with our non-profit services well point you in the direction of someone who can. Freedom Debt Management is a 501c3 non-profit organization recognized by the BBB as an A+ rated service.

2009-10-20T20:38:00.001-04:00

Certified credit counselors here to help

Reduce Your Credit Card Balances

2009-10-20T14:05:00.002-04:00

Everyone has their primary reason for wanting to pay off their debts with the most important purpose underlying the plan – to save money. With APRs at extortion rates between credit cards and personal loans its near impossible to get out debt. Many Americans are simply maintaining their debts by making minimum monthly payments that barely break the bank fees, placing next to nothing towards balances each billing cycle. Currently, the average interest rate on credit cards is around 14.4 percent. The average default or late payment jumps the rates to the high 20s and its game over for most therein.

Credit debt creates consumer debt. Recent surveys show that consumers who use credit cards instead of cash are likely to spend 25-30% more when they go shopping. It would be safe to assume that with the current state of the economy and these figures people do not treat credit like real money, rather an expendable luxury.

Most consumers are accustomed to using their credit cards for their daily purchases, all the way down to gasoline and groceries. So it would be save to say that with the comfort of credit use combined with the criminal creditor fees the odds are stacked against you when it comes to ending the cycle and getting out of debt.

So how do you reduce your balances?

Well, nothing happens over night. Like life, the theory - if its too good to be true probably is - lies true here too. You have options…you may not like your options, but theyre there for those determined to become debt free. Two of the most popular ways of getting out of debt are credit counseling & debt settlement programs, also known as debt negotiation or debt management. While they have the same goals in mind the services within are as different as night and day.

Credit counseling, debt consolidation programs are usually conducted via non-profit certified counseling organizations who disburse payments to the credit card companies each billing cycle as received from the consumer. A credit counseling agency negotiates the terms of your current credit card plan for reduced interest rates and usually a lower monthly payment. Consumers who are behind receive even more relief as late, past due, and over limit fees stop once the accounts are enrolled. With reduced interest rates and the stopping of additional fees consumers are able to pay back their debt at an affordable rate within a reasonable time frame, usually 4-5 years. Timely monthly payments and the continued reduction in balances assist in improving credit scores throughout the duration of the program.

Debt settlement services take a different route to getting you out of debt. Depending on your current credit situation, some settlement plans can get you out of debt in as little as 3 years. Debt settlement plans best benefit those with bad credit, charged off accounts or those facing the possibility of bankruptcy. Settlement companies work with collection agencies to lower the amount owed on your principal balance, not just interest and fees. However, such negotiations cannot begin until an account has reached a charged off status which usually occurs after 6-7 months of non-payment. An account in a charged off status remains as a bad debt on your credit report for seven years, regardless if the balance is paid or not. Something else to consider when exploring settlement alternatives is your tax backs on settled accounts. The amount saved in a settlement offer is considered taxable income by the IRS. So if a settlement company settles a $5k debt for $2k the difference of $3k is taxable by the IRS and considered earned income for that year.

Reducing credit card balances and paying off your debt takes time. Deciding which option is best for you truly depends on where you’re currently at and where you want to go. How you want your credit affected, your goals for the next 5 years, and your current budget and financial ability to satisfy said debts. Most non-profits provide free budget counseling and consolidation quotes to help consumers make an educated decision as to how they can/should absolve their debts. For more information or a free consultation call us at 800-905-1516 or visit our website to Live chat with a certified credit counselor. No time today? Complete our online application and a certified counselor will call you at a time convenient for you to go over your financial goals and credit debt. Freedom Debt Management is a certified non-profit financial counseling organization recognized by the Better Business Bureau as an A+ rated business for customer satisfaction and service.

Feds Hit ‘Credit-Repair’ Come-Ons

2009-10-19T17:05:00.002-04:00

With Americans’ credit scores plunging following record numbers of mortgage and credit card delinquencies, companies who promise quick fixes - eliminating negative information in credit bureau files - are proliferating, say federal officials. Read the full story at the Boston Herald...

Death by Debt- Visa, The New Mafia

2009-10-15T17:43:00.003-04:00

Visa is the new Mafia and you’ve been marked for death by debt. You remember that class in high school about how to manage your credit cards? Neither do we. With no education available and most consumers first establishing credit around the same time you can buy alcohol it would seem the system was set for us to fail and be in this huge economic deficit. 80 percent of America is engulfed in credit card debt…Meaning; youre not alone and its not your fault.

Credit card debt can become a vicious circle thats hard, if not near impossible, to get out of. Increasing interest rates and delinquency fees add up quick and if you’re making minimum monthly payments with these combined rates and fees you probably aren’t seeing your balances go down each billing cycle. Creditors have established the minimum monthly payment amount to maintain consumers in staying current with their credit card payments but never really paying the balance down. This method keeps consumers paying on a debt for 15-20 years and usually adds up to three times the amount originally owed.

Regaining financial control takes a few dedicated steps starting with a household budget. A basic budget counseling session reviews your debt to income ratio on a monthly basis and accounts assets versus liabilities. Most creditors, too, now require a budget on file to consolidate their unsecured debts and some provide better benefits based on the accuracy of the budget analysis administered. Legitimate non-profit agencies offer free budget counseling with a certified credit counselor to assist consumers in assessing where theyre currently at, where they want to go, and analyzing the information to figure out how they can help the consumer get there.

You may be paying on 4-5 credit cards monthly with sporadic due dates that probably do not coincide with your other monthly financial obligations. A debt consolidation plan combines those payments into one payment with a due date based around your other monthly bills accounted for in your budget counseling session. This allows the consumer not only the convenience of one monthly payment, but allows the consumer to select which date to make this payment to ensure a successful debt elimination program.

Now you have a budget and have consolidated your debt. How else can you benefit from credit counseling and get out of this crazy card circus? Well, debt consolidation has many more benefits that go along with one monthly payment.

Usually, the payment amount is a bit less for each creditor once consolidated. Once your unsecured debts are enrolled in a debt management program the creditor fees stop immediately. This includes late, past due, and over limit fees if youre behind on your payments. Each one of these fees is usually around $39 each but the savings doesn’t stop there. Most creditors will bring an account to a positive reporting status, current, after 4-5 consecutive monthly payments have been made through the credit consolidation plan. This then helps you improve your credit score over time with consecutive monthly payments. Oh, and that interest rate of 20 plus percent? Reduced dramatically working with a non-profit credit consolidation program. Most creditors offer rates between 7 and 10 percent, fixed. For most that’s a 50-70 percent interest reduction alone.

A budget in hand that accounts your debt to income ratio and a consolidation plan to reduce balances and rebuild credit starts you on the right track to ending that vicious cycle we call credit card debt. There are non-profit programs out there that provide free budget counseling and debt consolidation consultations to help consumers like you explore options and get educated on credit debt. Contact a certified credit counselor today and learn more free financial information on how to become and stay debt free. Non-profit Certified Credit Counselors are here to help you find financial relief. Call us 800.905.1563 or visit our website freedomdm.org for a free consultation and start your road to financial freedom.