Last year I published the DebtClear Roadmap: A Comprehensive Guide to Debt Relief, Credit Repair, Asset Protection and Lawsuits. Sales have been good, but in order to reach a broader audience, and accommodate different learning styles, I created an Audio Program and Home Study Course for The DebtClear Roadmap. Both are now available for purchase and instant download at www.thedebtclearroadmap.com.
The DebtClear Roadmap comes with a guarantee unmatched in the debt relief industry. I guarantee that if you follow my program from start to finish you will reduce your credit card debt by over 80%, or I will refund 500% of what you paid me. That’s right, 500%! Either my program really is that effective, or I like to give away money…and I don’t like to give away money (except to public radio ;-)).
The Audio Program and Home Study Course also come with a 30-day, no-questions-asked, unconditional money back guarantee. Evaluate the DebtClear Roadmap for up to 30 days and if you aren’t completely satisfied, for any reason, I will refund your money-period.
The risk is entirely on me so check out www.thedebtclearroadmap.com and find out how you can get out from under that pile of credit card debt and get on with your life.
First the bad news: Some people are sued by creditors who are attempting to recover a debt. If that suit is successful, a judgment is entered, and the creditor can enforce that judgment by garnishing wages, putting liens on property and/or even taking money out of your bank account.
But here’s the good news: In our experience, less than 20% of accounts receive lawsuits. In fact, one of our partners reports that only 6% of their clients are sued by original creditors or 3rd party debt collectors.
And here’s the better news. If you understand your rights, know how the system works, and get help when you need it, in many cases you can make it too difficult of expensive for the creditors to win and eventually get the case dismissed.
98% of the time when a creditor sues a debtor one of two things happens:
- The debtor buries his or her head in the sand and doesn’t respond to the lawsuit and the creditor gets a judgment by default; or
- The debtor shows up in court and tells the judge some sad story about how they got in their present situation. However, all the judge cares about is whether the account is theirs and whether they made the charges. The debtor says, “Yes, but…” and the judge again rules in favor of the creditor.
Remember, suing someone is the most expensive collection effort a creditor can pursue. Even if they get a judgment, they still have to enforce that judgment and there is no guarantee they will be able to collect anything at the end of the day. As a group, those who can’t make minimum payments to their creditors don’t have a lot of assets to collect on.
Even the worst attorneys – and believe me creditor attorneys are the worst – still bill at least a couple hundred dollars per hour for their time.
So let’s look at this from the creditor’s perspective:
- They most likely purchased your account for pennies on the dollar.
- They are used to winning the vast majority of their lawsuits by default.
- Enforcing these judgments costs even more time and money with no guarantee for return.
As long as creditors are making money suing debtors they will continue to do so.
However, if you know your rights and respond to the lawsuit with requests for discovery, interrogatories, admissions, etc., you throw a wrench in their business model. In order to pursue the suit, they have to keep spending more and more money and pretty soon their theoretical profit margin disappears and they start losing real money. Furthermore, the more work you throw at these bottom-feeding attorneys the more likely it is that they will mess up somehow, allowing you to have the case dismissed!
The Credit Card Accountability Responsibility and Disclosure (CARD) Act went into effect on February 2, 2010. It’s supposed to help protect consumers from credit card companies, but even before it was in place the banks were already loopholes devising loopholes.
Some things will change for the better. Due dates for monthly payments must be the same every month. Any payment you make over the minimum amount has to be applied to the highest-rate debt on the card (like, say, your cash advances). And it’s harder for credit card companies to increase your interest rate, at least on existing balances.
So what are the credit card companies doing to make sure they still make incredible profits? Many will start imposing annual and balance transfer fees. They’ll add “inactivity” fee for people who don’t use their card enough or at all. Pay off your card every month and you might just be dinged again.
Worst of all, the new law doesn’t cap interest rates. At least one credit card company will be issuing a card with an effective interest rate of 79.9%!
Make sure you review any changes to your credit card contracts post 2/2/10 and carefully shop around when considering new offers for credit.