Defaulting on debt payments usually begins a cycle of abject
misery to the consumer. Most people who borrow money do so
with the best intentions. Usually the borrowing takes place to help
solve a financial problem. The problem can be caused by loss of a job,
overextending, illness, school tuition and no job and on and on.
The consumer believes that the borrowed funds will truly solve the problem.
By the way, whether or not it will is definitely a subject for another
article. But for purposes of this article, please just accept the
premise.
I think everyone reading knows exactly what happens if the
default is not dealt with early on. First, the original creditor
calls you ready to help. Usually the help offered is only
a temporary band aid. After about 90 days of not curing the
default, the creditor, that’s the company or credit card that
extended you the money will sell the debt to a debt collector.
If you look up debt buying on Google you will
see what a huge industry debt buying has become. At
this point you are nothing but another opportunity for
someone in the collection industry to make money.
When your original debt is sold to a debt collector, it is sold
at a discount. E.g. A 10,000.00 dollar debt may be sold for as little
as 2500.00 dollars. The debt collector can then take 3500.00
dollars from you and make a profit of 1000.00 dollars. What about
the original creditor who gave you the money? Not to worry.
They have many ways of being made whole again. First of all,
they have probably already made money by charging you
tons of interest on the money they gave you. Secondly, they carry
insurance policies against just such a default. Thirdly, they can
file the loss on their tax returns, and on and on. While you are
staying awake worrying at night, everyone connected to that
defaulted debt is making money. While you took the money
in good faith, you now can not pay it back. Before I go on,
let me say this, I believe one should honor their debts, however,
if you offer a creditor what you can afford and they are not willing
to work with you, then I say the gloves are off and get ready to
do battle, in an intelligent manner.
The solution may well be a new approved program called
“Credit Shield”. When I say newly approved I mean it
has been in use for about 4 years now. Credit Shield is
not Bankruptcy, not Debt Settlement, and not Debt Consolidation.
It is a Forensic Audit Program. What does that mean to you?
The Credit Shield system invokes the laws and statutes found in
the Fair Debt Collection Practices Act, and 8 other laws to protect you from third party debt collectors, fraudulent debt collection practices, and violations of
your rights. We work with a nationwide attorney firm for collecting
money for you as well when debt collectors violate your rights by calling or continuing collection without verifying the debt. If the creditor is unable to produce the requested documents they give up trying to collect on the debt. It puts
the creditor in an unwinnable position. If the requests for
documentation cannot be met then the next thing that
happens is Credit Shield has the creditor remove the
negative indication from your credit report.
This program is a no brainer for most people with unsecured
debt. Less expensive than Debt Settlement, and it comes with
a money back guarantee.
If you would like to know more please feel free to contact me.
Steven Ciantro
Consumer Advocate
American Debt Enders
Rated 3rd Nationally
Certified Credit Counselor
TalkShoe Radio Host
Member National Association of Certified Credit Counselors
Debt Expert for Gail Kasper’s Top 1% Club
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