Gene Mundt wrote an excellent blog post on the topic: Real Relief Stiff Restrictions Coming for Debt Relief Companies The gist of Gene's blog is that the FTC's ruling is a giant step forward for consumers. The truth is far less encouraging. From my perspective as a debt consultant, Gene's post clarified how misunderstood the consumer debt industry is and it shined a light on a prejudice … (7 comments)
financial hardship: FICO SCORES ... How They're Arrived At ... How They're Affected by Short-Sales, Foreclosures, & Bankruptcies
- 05/08/10 10:29 AM
This is an excellent explanation of how the FICO score is calculated. I'm re-blogging this with a caveot. I do not agree with the comment that the credit scores will take years to rebuild. If the consumer takes control of the situation, the credit score can be reestablished with 6 months and it's possible to be golden again within 2 years. This is of course not a blanket statement as there may be circumstances that depress the score beyond two years. I agree with the statement that one should not stay in an unsustainable situation just to maintain a credit … (1 comments)
financial hardship: How Do You Qualify for Debt Settlement?
- 04/08/10 06:34 AM
How do you quaify for debt settlement? Remember, debt settlement is the process of negotiating with your creditors to settle your debt for less than the prinicpal amount owed. The process works effectively and works well for most people, but it's not for everyone. There is a qualifying process. Ideally you should have at least $10,000 in unsecured debt, but we can go down as low as $7,500 in some cases. The debt should be unsecured, meaning that it's not attached to a house, boat or car. Examples of unsecured debt include credit cards, signature loans, medical bills and deficiency judgements. … (3 comments)
financial hardship: Is it Financial Hardship or a Cash Flow Problem??
- 03/05/09 11:46 AM
The current economy has thrown millions of Americans into a cash flow nightmare. As credit card bills pile up and mortgages fall behind, each day more and more Americans are faced with choosing between putting food on the table or pay the mortgage or credit card bills. One of the criteria for getting relief is having a valid financial hardship SO - What constitutes a financial hardship? Simply put, a financial hardship is a life event that significantly lowers income OR increases expenses to the point that minimum payments cannot be maintained. Examples of Reduced Income Hardship include: due to change of employment … (2 comments)
This Blog is my voice on the political, financial and social implications of debt. My goal is to encourage my readers to think outside their own personal reality and to challenge the social and political truths we have been taught about money, finance and our "free market" economy.
A few weeks ago the FTC released guidelines for the Debt Relief industry that will have far reaching implications for consumers who are in financial hardship and having trouble paying credit card debt.
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