A Debt Settlement Testimonial from Sam
posted by Mike Clark on 1/23/2009 10:20:19 AM
About three years ago I searched for an answer for the dread of endless and mounting credit card debt as the industry I work in began to take a down turn. Owning a start up company is tough even during the best of times. You need to live and I turned to my lines of credit to get me through it.

The credit system is not a fair system for the consumer yet we gladly enter this system. When its out of control creditors use tactics that may be legal but ruthless. Realize that the system rewards the creditors because that’s who has set up the system and keep you in it for as long as possible. After my search I chose Total Debt Services (TDS) because of the straight answers and attention to my concerns about the process. TDS always treated me with respect and helped me through a time that I never thought I would experience.

Over the last three years circumstances have come up where I needed to act quickly to settle debts and TDS acted to get the job done. TDS is always a phone call or an email away. TDS relieved the stress of having to deal with the creditors directly while legally reducing the debts I owed. In addition the program makes you save on your own to learn how to change your use of money and your lifestyle. Today I do not use credit cards and don’t buy anything unless I have the funds.

Thank you TDS!

Sincerely,
Sam
Wentzville, MO

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What to do With a Mountain of Debt
posted by Mike Clark on 12/8/2008 3:06:36 PM

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Are you shopping smart?
posted by Mike Clark on 11/10/2008 1:50:15 PM
When trying to get out of debt there are several tips, but one of the most important is to plan out a budget. What are you spending your money on? Put it on paper and evaluate what you are spending and look for ways to save.

A quick way to shave a few dollars out of the monthly budget is to clip coupons. I have not been much of a clipper myself, but with rising prices and the tightening of the economy I have found that it makes a difference. Maybe you save ten dollars this week, twenty five next week and five the week after that. That's forty dollars you have freed up to apply to other bills. If you are enrolled in a settlement program that can add up even quicker.

For example, if the average settlement is 50% and you have saved an extra forty dollars per month that's 480 saved for the tear which could seem like 960 dollars in the form of a settlement.

Be sure to check your local paper for coupons, but if you want to go one step further in saving money check some online coupon sources

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Presidential Credit Card Debt
posted by Mike Clark on 10/26/2008 5:08:38 PM
In today's culture we have become accustomed and even desensitized to credit card debt. We don't give any care or concern when we look around any room and think that almost everyone in that room has debt. What would you think if you knew how much debt the Presidential Candidates had? That information is released in public financial statements and is available. Here's a quick article about the debt loads carried by the current candidates.

By comparison the debt carried by the McCains is pretty reasonable when taken their worth into account.

Technorati Tags:credit card debt, presidential candidates, john mccain, barak obama, debt

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Total Debt Services earns BSI Certification for TASC Best Practices
posted by Mike Clark on 10/17/2008 1:33:07 PM

DALLAS, October 17, 2008 — Total Debt Services (TDS) earns certification as a "TASC Best Practices" Accredited Member Company after successfully completing a detailed audit by independent third-party auditor BSI Management Systems.

The Association of Settlement Companies (TASC) launched the "TASC Best Practices" accreditation program with BSI in December of 2006. Certification through this accreditation process ensures that a member company is meeting the highest level of quality and service for their clients.

About TASC: TASC’s™ goals are to promote good practice in the debt settlement industry, protect the interests of consumer debtors, and lobby on behalf of debt settlement companies on the federal and state level. Membership of TASC™ is reliant upon debt settlement companies being able to demonstrate that they comply with the standards set out in the TASC™ Bylaws. The Bylaws have been developed in consultation with a number of debt settlement companies, discussions with different states’ legislators, and major lenders. The aim of the Bylaws, and that of TASC™, is to encourage debt settlement companies to provide services of the highest standards to ensure the public and the credit industry’s confidence.

Press Contact:

Michael Clark mclark@totaldebtservices.com Direct: 214-778-1567 www.totaldebtservices.com

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How Serious is Your Financial Situation?
posted by Mike Clark on 10/13/2008 8:20:39 AM
Debt is a serious burden to many Americans, but it can be resolved. In a society that encourages spending rather than saving, debt is a serious issue in a lot of households. There have been some tragic news stories recently about the severity of debt. In Michigan a man killed his wife and sons over his gambling debt that had amassed on credit cards. In California last week aother man, distraught over his debts killed his mother-in-law, wife, and three sons. There are also countless suicides surrounding financial hardship.

I just want to take a minute to tell everyone in need of debt help that there is a solution for you. Maybe Consumer Credit Counseling, maybe Debt Settlement, maybe Bankruptcy, but please, do not let your debt push you to this point. Things may be hard and it's probably overwhelming, but there are plenty of qualified people to help you out of your situation. Seek help. Maybe you turn to your Pastor or Financial Advisor for some words of guidance or ideas on what to do. You could search the internet, call the company whose TV commercials or radio ads you hear, but find help for your situation.

Technorati Tags:suicide, debt, murder, debt settlement, debt help, debt relief, financial hardship



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Creating Wealth Through Debt Settlement
posted by Mike Clark on 10/7/2008 12:18:21 PM
Home values, stocks, and the value of the US dollar are all falling. Is it really doom and gloom for the US economy? Opinions vary from one economist to the next. Dave Ramsey, the host of a popular syndicated financial radio show, has mentioned "that GDP and Net Worth figures were steadily rising - and pointed to these facts as proof that talk of recession is nothing more than ‘fear mongering’."

Other financial "gurus" such as Peter Schiff have made mention of the growth bubble and the change of tide from Americans who saved to Americans who spent. The spending (or over spending) has bolstered the economy under false pretenses. The over extension of credit and the push to spend are devaluing the dollar at a rapid rate and will lead to a great recession.

Where does the truth lie? Probably somewhere in the middle. We are currently experiencing some economic turmoil in the United States. Borrowers that could not afford homes were set up with adjustable rate mortgages on the forecast that housing values would continue to rise and interest rates would stay low. Americans were encouraged to spend, spend, spend. Technology advancements provided new gadgets and goodies that were pushed on consumers. Products were outdated and no longer supported in order to bolster the sales of replacements, and we the people bought into it. But did we really buy into it, or just borrow into it?

Fast forward to today. Many Americans are struggling with those mortgages that they couldn't afford, credit card debt that has overwhelmed them. Who's to blame for that? Should the banks take the responsibility for reckless lending? Should the media for pushing spending? Should the manufacturers for creating desire and want for their products? Should it be the consumers for allowing themselves to be sucked into the buy now pay later cycle? Should it be all of the above, or should it be a lack of education and emphasis on saving instead of spending?

With all of that said, what is most important right now? Pointing a finger or grabbing a hold of the situation, addressing it and educating consumers, pushing towards a saving society instead of a spending one.

The first step to addressing the problem as opposed to just complaining is to analyze your situation and plot a course of action to get out of debt. How can a consumer get out of debt with the current economy? By asking for help! It may not be that debt settlement is the right option for everyone, but one of the principles of debt settlement is saving. By assessing a consumers individual situation a debt analyst will assist them with creating a budget to amass funds used to settle their debts. A typical debt settlement program, when explained, implemented, and carried out properly) will help consumers create a budget that is both manageable and void of unnecessary expenses. After saving and completing settlements with creditors, consumers are accustomed to saving a certain amount per month to satisfy the settlements. When they are done and the consumer is out of debt they are encouraged to continue saving as they had been.

The continued savings creates a wealth for the consumer and with diligence, patience and an understanding based on experience the consumer is able to truly get ahead and maintain a budget and "cash only" policy when it comes to the luxuries of life. Instead of putting that vacation on a credit card a consumer would be more apt to look at their savings plan and allot monies each month to pay for the vacation, or TV, or new gadget when they have the money to do so. Having a small amount of "wealth" is a good feeling. It's enabling to have a grasp on finances.

As a consumer, how would you benefit from having a strict budget, no credit card debt, and an ever increasing savings balance?

Technorati Tags:falling home values, adjustable rate mortgage, economy, create wealth, debt settlement, budget, savings, credit card debt, get out of debt

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Government Seizure of WaMu Increases J.P Morgan Chase Assets.
posted by Mike Clark on 9/26/2008 10:55:18 AM
In the news this morning....

In what is by far the largest bank failure in U.S. history, federal regulators seized Washington Mutual Inc. late Thursday and struck a deal to sell the bulk of its operations to J.P. Morgan Chase & Co.

I think we are all aware that it is a tough market in the U.S. right now. Stocks have fallen, lenders have continued to tighten the reins and major banks have teetered and even toppled. Banks are struggling with the same issues we as consumers are. Maybe they don't stress the increase in fuel prices, or the fact that food prices are going up, but the instability of the economy at the moment does have bearings on the ones with the money as well.

The fact that no bank was willing to buy WaMu until it failed shows how badly confidence has eroded in a banking system awash with record profits just a few years ago. Faced with deepening losses on mortgages, credit cards and other loans, big and small banks across the country are struggling with what many bank executives say is a crisis far deeper than the savings-and-loan debacle.

Banks afraid of purchasing banks? Chase bank has steadily grown over the years. You may remember the purchase/merger with Bank One a few years back. Chase recently turned down a $4.00 per share offer to purchase WaMu, hindsight, good job Chase, shares fell to $0.16 at the time of seizure.

J.P. Morgan agreed to pay $1.9 billion to the government for WaMu's banking operations and will assume the loan portfolio of the thrift, which has $307 billion in assets. The full cost to J.P. Morgan will be much higher, because it plans to write down about $31 billion of the bad loans and raise $8 billion in new capital. All WaMu depositors will have access to their cash, but holders of more than $30 billion in debt and preferred stock will likely see little if any recovery. The deal will vault J.P. Morgan into first place in nationwide deposits and greatly expand its franchise.

references: WaMu Seized, Sold off to J.P. Morgan; Deal, Bailout Delay Rattle Investors
How Takeover of Washington Mutual Will Affect Customers

Technorati Tags:wamu takeover, chase bank, government seizure, credit card debt, mortgage

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White House says opposes House credit card bill
posted by Mike Clark on 9/23/2008 10:20:08 AM
WASHINGTON (Reuters) - The White House said on Monday it opposes legislation called "the Credit Cardholders' Bill of Rights" that would curb unfair and deceptive credit card practices, saying it would constrain banks' ability to price risk.

The White House said in a statement the bill would lead to less access to credit and higher interest rates for consumers.

"For the credit market to operate efficiently, creditors must have the flexibility to react to changes in customer risk and market conditions," the White House said.

The provision "would restrict when lenders may change terms of the credit agreement, significantly constraining the ability of financial institutions to adapt to changing credit risks and market conditions," the White House said.

The legislation is in the House of Representatives. The full House is expected to pass the bill, but similar legislation is not expected to progress in the Senate due to preoccupation with the financial crisis and U.S. presidential election.

The bill, chiefly sponsored by New York Democrat Carolyn Maloney, is similar to proposed regulations the Federal Reserve is reviewing and expected to finalize later this year.

Banks, reeling from the collapse of the U.S. housing and subprime mortgage markets and subsequent credit crisis, oppose the bill, which could limit their credit card revenue.

The bill would end double-cycle billing, in which card companies reach back to prior billing cycles to help calculate the interest charged in the current cycle.

It also seeks to give cardholders more time to pay by forcing card companies to mail bills 25 days before the due date instead of the current 14 days.

Among the biggest issuers of Visa Inc and MasterCard Inc credit cards are Bank of America, JPMorgan Chase, Citigroup, Capital One Financial Corp and Discover Financial Services.

The White House said it was concerned about unfair and deceptive practices and supports efforts to protect consumers, but added that regulations are better suited to address the issues instead of legislation.

(Reporting by John Poirier and Nancy Waitz; Editing by Gary Hill)




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Consumer debt defaults looming large
posted by Mike Clark on 9/23/2008 10:16:54 AM
As more Americans lose jobs, credit cards, loans won't be paid

By Rachel Beck | Associated Press
September 11, 2008

The government doesn't want Fannie Mae or Freddie Mac to go broke, but it better start thinking about what happens if the rest of us do.

The latest data on the job market paint an ugly picture: The unemployment rate shot to a five-year high in August, and payrolls are being cut at an alarming rate.

With more people out of work, that likely means many are having a tougher time paying their bills. If that leads to a surge in defaults on debt assets beyond just mortgages, such as credit cards, auto loans and more, we can forget about the credit crisis being over any time soon.

That's something to remember amid all the news regarding the Treasury Department's takeover of Fannie and Freddie. The mortgage giants, which own or guarantee about $5 trillion in home loans, or about half of the nation's total, have been ailing for months as mortgage default rates have soared and their capital base has been constrained.

The plan, which calls for the government to inject up to $100 billion in each of the U.S.-sponsored mortgage financiers to keep them operating, has been lauded on Wall Street as a turning point in stabilizing the housing market and buoying the overall economy.

But the bailout can't be viewed as a cure-all for U.S. credit problems. The government is trying to prevent further deterioration in the mortgage market, but it hasn't done much to ease other credit troubles.

"There is no silver bullet here. This is certainly a positive step but is not the absolute answer," said Mark Zandi, chief economist at Moody's Economy.com. "They've made progress in residential mortgage assets but have yet to deal with other problematic loans."

What's worrisome is whether growing stress in other areas of credit leads to more big losses and write-downs at banks and other financial institutions in the months ahead.

Of particular concern is what happens with the more than $2 trillion in consumer debt. That may be a fraction of the more than $12 trillion in residential mortgage loans, said Zandi, but it still is large, comparable with all the goods and services produced by France in 2007.

Americans this year have been increasingly using their credit cards to make purchases. Banks have tightened lending standards on such things has home equity loans, which consumers used heavily in recent years to finance spending. New data from the Federal Reserve show that consumer borrowing on credit cards grew at an annual rate of 4.8 percent in July, up from a growth rate of 3.5 percent in June.

But as credit card use has surged, payments on those cards have fallen, even though $106.7 billion flowed into Americans' wallets in recent months from the U.S. economic stimulus package. Card payment rates fell 6.2 percent on a year-over-year basis in July, the ninth consecutive monthly decline. That's the second-biggest pullback in the records kept by the banking analysts at Oppenheimer & Co., behind March's year-over-year decline of 7.4 percent.

And the situation for consumers seems to be getting worse, at least given the weak jobs data, which some economists say is indicative of a recession.

According to the Labor Department, the jobless rate rose to 6.1 percent in August from 5.7 percent in July, and employers cut their payrolls by 84,000 in August, the eighth consecutive month of declines. That pullback was fueled by employers' worries about the economy and their own business prospects.

So far this year, 605,000 jobs have vanished. The economy needs to generate more than 100,000 new jobs a month for employment to remain stable.

"Rising joblessness of the magnitude we saw in the August employment report means that more households, including good-quality prime borrowers with solid credit histories, will likely be encountering more difficulties meeting their debt obligations," said David Rosenberg, chief North American economist at Merrill Lynch.

Research by Merrill's economics team found that there is a tight historical link between the unemployment rate and consumer credit card delinquencies.

"So even with this dramatic support just unveiled for the mortgage market, we anticipate the next phase of the credit crunch will be in the form of lenders being forced to revise up their consumer-credit loss estimates once they start to more fully take into account a deteriorating employment backdrop," Rosenberg said.

The losses might not begin to intensify until 2009, because there is a lag between when someone is out of work and when loan defaults begin.

So while the U.S. government focuses its attention on the mortgage mess, another storm is brewing. And don't count on a quick fix.
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