Archive for March, 2010

The Number #1 Thing Hurting You From Getting Out Of Debt

Recently I’ve been talking to clients, friends and family members that are in debt and the number one reason why they don’t believe they can get out of debt is not having enough money to do it.  They simply don’t believe they can do it.

Even though they are struggling financially they believe that they lack the discipline to follow a plan.  I completely understand this feeling.  I think that we are use to getting instant gratification when we buy something new, but when it comes to working hard at something most of us will start to quit or fall apart.

To fix this problem of wanting instant results for something that will take time to work you must be willing to accept small victories as the result.  If you have 5 credit cards that you’re trying to pay off I would instruct you to start paying off the smallest amount first.  So your first reward would be setting up the plan to pay off the credit cards.

The second reward would be sending the payment to the smallest card and the third reward would be paying off the smallest card.  You can see that there is a step by step process.  This technique can work for anything you want to accomplish in life.

Get Out Of Debt Faster

Bank of America Mortgage Modification Plan – Good or Bad?

If you’ve been watching the news over the last year and a half it’s all about foreclosures and job loses.  Some states (Michigan, Nevada, California, Florida) have been crushed by foreclosures.  This has meant a steady decline in home values.  So the ripple effect is that people that want to sell their homes can’t get what they are worth and a lot of properties are sitting abandoned in certain neighborhoods.

The huge bailout that Wall Street received from us American Tax payers was suppose to help this situation but all they did was save their asses and pay-out big F”in Bonuses to employees that got us in the situation.  If you’ve been reading my blog postings you know that I don’t dwell on the past.  So the President and congress has came up with a program asking banks that took government money to figure out a plan to help people keep their homes.

So here’s their new plan:  Bank of America is the only bank that has stepped up so far…you must be 2 payments behind and your mortgage must be 25% more than your home is worth on the market.  If this is the case you will be eligible to refinance your home at a lower interest rate, the mortgage company will forgive the 25% principal that you are upside down in value and lower your monthly mortgage payment.

Sound’s good so far for the people that just got into trouble but what about the people that have kept up their payments?  They never want to really do what can really help people get back in shape financially.

Problem #1 – the 25% forgiven principal will not just go away.  The mortgage company is going to write that off and send the family a 1099 form for that amount as income.  BIG TAX HIT!  You see…we can run away from a house and mortgage company if we can’t afford it, but UNCLE SAM – Tax Man we can’t run from.

Problem #2 – it doesn’t stop these families from refinancing again.  I’m not into telling people what to do, but I’ve seen families in my neighborhood get new stuff by refinancing their homes and using the money to pay for it.  Not understanding that they would have to pay it all back some day.

Problem #3 – are they going to do credit checks?  If so, that may disqualify 99% of the applicants.

Problem #4 – are they going to do a full income verification?  If so, that may disqualify 99% of the applicants.

Stay tuned for more information as its released.  The details are still sketchy.

The Best Solution Get Out Of Debt Now…

Debt Negotiation Companies Ripoff Families

I’ve been reporting that these companies are just out to get your money.  The credit card companies that they settle accounts with were already willing to settle any ways.  Watch this CBS Early Morning Show Video.

Thanks President Obama for Health Care!

Today March 21, 2010 will go down in history.  For more than 50 years we have asked for the richest country on the planet to give us better and accessible health care and now we have it.

No more insurance monopolies

No more denying pre-existing condition

You can keep your children on your plan until they turn 26 years old

32 million more American’s will be insured…

and much more!!!

This is a great day and overtime we’ll see that President Obama did the right thing!

The #1 reason for bankruptcy is because of medical bills!

Get Out Of Debt Faster Now!

27 Bank Closures in 2010

As of Friday March 19, 2010 – 7 more banks were shutdown by the FDIC.

The banks were drowning in real estate debt from making loans that they shouldn’t have been making.  But who’s fault is that the consumer or the bank?  The bank loan officer’s job is to qualify people and if they made loans to people that didn’t qualify that’s fraud on their part not the consumer.

Also I beat that these bankers credit won’t get messed up or their reputations either.  They will just move on to another high paying bank job or they might still be in charge of the new bank after its taken over by the FED.

Don’t give the people anymore of your hard earned money…Get Out Of Debt ASAP  Click Here:

Could James Sikes Be Lying About His Runaway Prius?

I’ve been telling you in my post that people will do things that they wouldn’t never think about doing when they are in financial trouble.  James Sikes the California Toyota Prius owner is reported to have had financial troubles.  I’m not saying that this is the case but if it is this will further prove my point about how debt can make us think in an irrational way.

The man who became the face of the Toyota gas pedal scandal this week has a troubled financial past that is leading some to question whether he was wholly truthful in his story.

On Monday, James Sikes called 911 to report that he was behind the wheel of an out-of-control Toyota Prius going 94 mph on a freeway near San Diego. Twenty-three minutes later, a California Highway Patrol officer helped guide him to a stop, a rescue that was captured on videotape.

Since then, it’s been learned that:

— Sikes filed for bankruptcy in San Diego in 2008. According to documents, he was more than $700,000 in debt and roughly five months behind in payments on his Prius;

— In 2001, Sikes filed a police report with the Merced County Sheriff’s Department for $58,000 in stolen property, including jewelry, a digital video camera and equipment and $24,000 in cash;

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Auto Modification Fact or Fiction?

Thanks for signing up for my mailing list!  I really appreciate your trust and I’m going to do my best to give you valuable information pertaining to debt and personal growth!

Today I’d like to talk about Auto Modifications.  Yes its like a mortgage modification but its for automobile loans.  Now I’ve been hearing a lot of radio spots claiming that they can negotiate a $700 car payment down to $300 a month.

I’ve also heard claims of changing the interest rate, etc., etc.

We’ll here’s the truth.  This is not a new thing, its actually been available forever.  We’ll not actually forever, but since their have been larger auto loans.  I’d say since the 1970′s.

During my financial crisis my wife and I discovered this technique back in 1995.  For starters this goes back to my main point about keeping the communication open between you and your creditors.  This will allow you to make offers and have them really considered by your creditors.

An Auto Modification basically works like this:
Let say your monthly payment is $500 and you’re having trouble paying the payment.  Here’s some options that you can approach your lender with:

First you need to sit down with your spouse if your married, yourself if not and find out what is your financial situation.

Is this just a shortfall because of an unexpected bill? Or is this a shortfall that will continue?

If its a shortfall because of an unexpected bill you can ask for a 30, 60, 90 or 120 day monthly payment extension.  This is where they will put the payments on the back of your loan.  Each lender is different some offer 1 month, other may offer 4 months or more.

You’ll have to contact them and ask to speak to someone in customer service.  You may have to explain your hardship to get approved.

If your shortfall is due to your financial situation changing, such as loss of job, decrease in pay or medical reasons.  Then you’ll need to talk to them about reducing the interest rate and payment permanently.

Regardless of which option you choose you can do this without paying a company to do it!  Also make sure you take care of the auto because you’re going to have it for a while.

Don’t spend the money on clothes and junk!  Use the extra money wisely to start planing to pay off your debt.

Remember if you have any questions I’ve an email or phone call away!
Steven Williams 262-745-6879 or email me at
sawilliams@therealdebtsolution.com

visit my website for help with your debt problems:

http://www.therealdebtsolution.com/howibeat.htm

NYPD Officers Behind Bars | Perfume Hiest

Two New York City police officers were behind bars, accused of stealing more than a million dollars of perfume.  According to police, Officers Richard LeBlanca and Brian Checo, who worked at the 34th precinct in Inwood, barged into a Calstadt, New Jersey warehouse.  With guns drawn, the two allegedly threatened employees and made off with the merchandise.
One suspect remained at large. The rest of the accused are being held without bail.

The first thing that might come to your mind is that these officers were just greedy!  But I think they are buried in debt and they felt that this was an easy way out!

Read More!

Economic Snapshot for April 2008

America’s families are caught in a perfect storm. Massive amounts of debt, falling house prices, disappearing jobs, flat wages, lower benefits, and skyrocketing costs for the most important consumer items are quickly emptying the pockets of middle class America and bringing many families to the edge of financial ruin.

The fact that policymakers have for years ignored large economic imbalances only exacerbates threats to the economic well-being of American working families. Massive trade deficits pose a drain on our national resources, slowing innovation means that we are generating less of what we need, and long-term budget deficits due to tax cuts for the rich are preventing the government from addressing the economic needs of America’s families.

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Actor Morris Chestnut owes IRS over $200,000

Uh oh, sexy actor Morris Chestnut has joined the ranks of the many celebrities who are behind on their taxes.

According to the DETNews, he owes more than $215,800 in delinquent federal taxes. Public records show, IRS filed a tax lien in the amount of $217,817 against Chestnut and his wife on January 7, 2010 with the Los Angeles County Recorded of Deeds.

Apparently, Chestnut does not agree with the amount listed in the lien and is disputing it.

Morris Chestnut co-stars in an ABC television series, “V” which is set to return Tuesday(Mar 30) 2010.

This is another example why you must save cash and stay out of debt.  With all of the movies he has been in there shouldn’t be any reason why he should be facing these types of problems.  I understand that a mistake could have been made on the figuring of his taxes, but he should have the money to at least make an offer in compromise to the IRS.  He could settle that for about $75,000 to $100,000 cash.

Learn How You Can Avoid This Type Of Situation