This Weeks Special Advice

In Maryland the high court ruled that debt collectors who purchase old debt can’t just sue you with a document showing that they have purchased your old debt. Now they must provide proof that you owed the debt with signed contracts from the original creditor.

This will slow down the amount of cases and open up debt collectors to making more disounted settlements rather then risk going to court.

For those who decide to take on the debt collectors you’ll have the law more on your side. Most of the time debt collectors never get the original documentation proving that debtors actually owe the debt.

Don’t worry if you don’t live in Maryland you can still use this technique against debt collectors. You’ll have to challenge the debt from the first letter they send you in the mail and if they take you to court you’ll challenge the debt by making them prove that you owe the debt by providing the appropriate paperwork and contracts.

The last few weeks have been very tough on a personal level due to the murder of a very good friend of mine Mr. Shawn Jenkins. He was a family man, businessman and a very good friend. He was murdered while closing up his shop Midtown Metal and Auto Recycling in Milwaukee Wisconsin. The circumstances of his death shocked all of us.

So I’m going to take this opportunity to revisit on of the most important aspects of The Real Debt Solution System – LIFE INSURANCE! We don’t know when we will die so its very important that you take care of your family financially if something was to happen to you. I come across a lot of people (Men) who say I don’t want to leave my wife with all that money so she can live like that when I’m gone.

That is one of the most selfish statements I’ve ever heard. Who cares what your wife does when you’re gone. She has to live and you should be more worried about providing some sort of financial assistance to help them get back to a normal life after the shock of your loss!

How could you struggle to provide for your family on a daily basis and not provide some sort of security to them if you meet an untimely death?

Term Life Insurance is the best way to guarantee that your family will not struggle if you die unexpectedly. Term Life Insurance is very cheap compared to what it will pay your family if you were to pass away. You should get at least 10 times your yearly net income. So if you earn $50,000 yearly you need at least $500,000 in term life insurance.

Don’t be fooled by agents that are offering “Whole Life Insurance”! They try to make these attractive by saying if you pay us for 20 years you’ll be earning cash value. Wrong…you can earn more by investing that money and just buying Term Life Insurance.
This week…I’m going to talk about student loans again. Student loan debt is about to reach $1.2 Trillion dollars. This will be the next economic bubble to burst but this time students and families that are on the hook for student loans will have no other option but to pay up. Unlike credit card debt, auto loans, payday loans, etc. you can file bankruptcy and dissolve the debt and there’s nothing that the creditors and debt collectors can do about it.

I believe that this was a trap that was set up by lending institutions because they have been trying to get Congress to change the laws pertaining to regular debt also. Former President Bush signed into law tougher bankruptcy laws but he left out businesses. The new law made it more difficult to file for bankruptcy and it also put the bankruptcy attorney on the hook if you lied about your assets.

Here are some things you should know…if you signed for a student loan you have up to 14 days to cancel the contract. That’s way your agent that did your paperwork for your loan might be calling you to see how you’re doing right after you get your loan but after 14 days they never call you again. They can’t get the money for the loan for up to 30 days but after 14 days they will receive authorization for payment.

You should also be aware if the major that you choose is a job that can #1 pay the student loan back and #2 you need to make sure that its a job that will be in high demand for the future.

A lot of students are making the mistake of getting degree’s in careers that could never pay the amount of money needed to pay off their student loans. They are also being very selfish and forcing their parents to send them to high priced schools thinking it will give them an advantage. Again they are wrong and they are ending up with a high price degree with little to no job opportunities in their field of choice.
Ok I’m starting to see mortgage companies and quickie loan companies start to send out marketing letters trying to get people that stabilized their situation in this economy trying to get them to go into more debt. I’m also seeing more credit card offers in my mailbox and these offers are getting more cleaver. I don’t use credit cards and I would not recommend anyone to use them because they are like walking through a mine-field. One wrong step your finances will BLOW-UP in your face.

These offers are so open-ended its unbelievable but most people only pay attention to 2 things in their credit card offers.
1. The amount of credit they will give them.
2. The interest rate they are promising.

But the interest they promise is not really the interest rate. The small print is riddled with terms that only the best of the best credit ratings will get 0% and if you get 0% they will only have it for 6 to 8 months. Then they will jack it up to 18%-30%.

So stay away from all of these offers to refinance, take quick cash and credit cards! They all SUCK AWAY YOUR WEALTH!!!!!
Don’t fall for the FOOL’S GOLD! There are a lot of companies willing to take our worthless US Dollars for Gold. Read that again…does that make sense? What don’t they just keep their gold and not take our worthless US Dollars? These companies are playing both sides of the fence and there’s nothing wrong with that because business is business.

But I’d advise anyone looking to get into buying gold to be prepared to get out of gold. The trick is when will it fall? That’s the million dollar question. But I can guarantee it will fall.
This weeks advice is a little sad but I need to warn you about this.  JP Morgan Chase bank has stopped its Ultimate Rewards program.  The good news if you were already a Ultimate Rewards member you get to keep getting the rewards, but if you don’t have it you’re out of luck.  I swear I’ve probably earned over $1,500 in cash back over the last 6 months.  I use to think rewards programs were just a big rip off and usually banks never offered cash back rewards program to debit card holders.  But Chase did, but it didn’t last too long because businesses hated the program.

In an earlier blog post I state that bank’s were not coming up with the money to pay these rewards business owner were and when the business owners started seeing their rates increase for credit card transactions they would start to complain.  I take credit and debit cards for my businesses and I saw a huge increase in the rates.

Also due to the new credit card laws banks have started coming up with some unique methods to make more money from their customers.  BEWARE of pending transactions counting as a paid transaction.  Many of my clients including myself have noticed that banks are actually charging a pending transaction as a paid transaction.  Let me explain: if you don’t have enough money in your account or even if you do but you didn’t know what your balance was and you check for your available balance online.  Well pending transactions will not count against your balance so you might think you have more money than you actually do.  So if you’re not careful you can end up negative in your account without even knowing it.

But the CRAZY thing about that is the banks are counting PENDING TRANSACTIONS against you if they can make your account negative.  This is very difficult to explain in text so I’m preparing video to explain this in detail.  Stay Tuned!



This weeks advice might make me seem like a broken record…but I must continue to pound this into your head to make you think!!! The economy is slowly recovering and before we know it things will be back to normal. But this time you don’t need to make your normal an abuse of easy credit such as payday loans, credit card, home equity loans, etc.

I’ve already started seeing an increase in lending by banks and lending institutions that made their mark by so called “predator” lending. They would charge interest rates that Tony Soprano wouldn’t feel comfortable charging.

Currently they have worked their way back into the furniture, auto and jewelry markets. They will lend to anyone with an income of over $800 per month. Regardless if its child support, SSI or disability. Their only request now is that you have a bank account.

Stay the ____ away from these types of companies. They will suck you dry and sell your information for a higher profit to a blood sucking debt collector when you can’t afford to make the payments anymore.

For 3 straight months American’s have increased their use of their credit cards purchases. This news can be taken two ways…
1) Consumers are more confident about their income and their ability to pay back credit card charges.
2) Consumers have spent their savings and the only funds they have access to is credit cards.

I personally thing that – Consumers are more confident about their income and their ability to pay back their credit card charges. As I predicted last year…American’s would start spending again once they got their bills under control and they either downsized or settled into their adjusted net income. This is really a no brainer!

So my Special Advice for you is to not get caught up in the new credit card spending spree that’s about to peak by the beginning of spring. Learn from your past experiences and continue to get out of debt. Pay cash or don’t buy it!


After you read this you might think “The Sky Is Falling” because I’ve always told my clients to get rid of their credit cards because they were the root of a lot of financial problems.  But I would like to re-phrase that advice.  Our bad habits are the root to our financial problems.  Credit cards are only a tool that we use to make it worse.  I personally don’t use credit cards, but I don’t necessarily think credit cards are bad.  I came to this new way of thinking after reading a post on one of my favorite blogs

A subscriber to his post said that telling people not to use credit cards because we were all reformed credit card users was like a person that lost weight telling all the other fat people what to eat to lose weight.

So my advice to you and my clients is if you use credit cards just pay them off each month and be very careful not to spend money that you can’t afford to pay by using credit cards.


Don’t fall for Debt Elimination company advertising claims. These companies are spending thousands of dollars with misleading ads claiming they can settle your $10,000 or more credit card accounts for pennies on the dollar. Well here’s what they don’t tell you.
1. They are #2 on the FTC (Federal Trade Commission’s) list of consumer complaints.
2. They will get you in to an “Adversarial” position with your credit card provider.
3. They only settle about .001% of their clients credit card accounts.
4. Only about .0001% of their clients stay in their Ripoff Programs and that’s the outcome they wanted.



Don’t close your credit card accounts when trying to get out of debt. I don’t use credit cards and I tell all of my friends, family and clients to stop using credit cards. My advice use to be to stop using them and close the accounts. But now due to the new credit card laws they can jack up your interest rates upwards to an additional 10% to 28%.

They will consider you an “Adverse Customer”, this is a customer that’s only paying payments but is not technically a customer anymore


{ 1 comment… read it below or add one }

Aunt Geila October 12, 2011 at 7:39 pm

Great information.


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