Tuesday, September 9, 2008

Some Success!

DISCLAIMER: 
The author is not a finance professional, nor does he offer any debt-reduction advice. He is a consumer just like you. The purpose of this blog is to chronicle the history of how he discovered creative ways to assist a friend, in extracting the friend and his family from their debt situation.

In any financial transaction, do consult with trained professionals, and pay their fees.

Finally, your financial situation may not be similar, or even relevant. Caveat Emptor!

So we were able to negotiate and apply for a 0.00-% interest rate - credit card for my friend. The credit card issuer listened to the story of my friend's situation and agreed. We were able to move the balance from his existing card issuer, onto the new card with a zero-interest rate for one year! Awesome!

Now we will attempt to repeat the process with his other credit cards. Hopefully, we can get all the balances moved to a zero-percent (0.00 %) account(s).

On the job front, after cleaning off the items on his resume that went back too far in his work history, we were able to secure some interviews and training at a high-tech recruiting firm. They will perform 'mock-interviews', so that he can tell his story briefly and succinctly.

Once he is employed, we will look at his bills, and determine the best ones to begin paying down, using accelerated payments every two weeks instead of once per month will help reduce the balances quicker. If you reduce the balance, you also reduce the periods (i.e. months) required to pay off the balance.

He already knows how to sacrifice luxuries when the income dropped, and soon he will have some spendable income to invest and grow his savings for the future. When he has gotten back on his feet financially, he can start planning an overdue vacation with his family.

The interesting thing about all of this was his hesitation in contacting the credit card issuers. He felt like they might ask him for all of the balance due to his unemployment. Imagine his surprise when they agreed to his request for a zero-percent interest rate account! I have found that in life, if you ask, one of two things will happen. They will say no, or they will say yes. 

These odds are much better than any gambling hall will give you, and it's your money! So don't let fear prevent you from accomplishing your finacial goals. With the money you save, maybe you could buy your dream home, or take that vacation you've always wanted.

As we progress further, we will discuss other payment reduction plans, including paying off his mortgage in fewer years, which does what? Reduces the interest paid on his home loan, so his home is cheaper to buy in total. Pretty cool huh? Respectfully, Nicholas





Monday, August 11, 2008

Monday August 11, 2008

DISCLAIMER:
The author is not a finance professional, nor does he offer any debt-reduction advice. He is a consumer just like you. The purpose of this blog is to chronicle the history of how he discovered creative ways to assist a friend, in extracting the friend and his family from their debt situation.

In any financial transaction, do consult with trained professionals, and pay their fees.

Finally, your financial situation may not be similar, or even relevant. Caveat Emptor!


Hello! I took a few days away to attend a swim meet championship. Weather was great, coffee was good, and food was plentiful!

Note: I also have a diet and weight loss blog at: http://dietingandweightlossblog.blogspot.com
where I am describing my personal weight-loss and cholesterol reducing projects.

So, what steps have been taken to reduce my friend's debt? First, I have arranged an interview with one of the top recruiter's in the US. My friend needs a full-time job first and foremost. He has discovered that marketing his skills requires an expert in the field.

His resume was in a format no longer in use, and did not highlight his technical skills in the best way. A company representative of a potential employer, trying to find a match between the client's needs, and my friend's skill set, would have been difficult.

The new resume' format brings his skills and accomplishments to the attention of an employer by segmenting his technical skills from his accomplishments.

As far as his credit card debt, we are in contact with the card issuers, trying to get not only the interest rate reduced, but minimizing the monthly payments to provide more cash to the family from the unemployment checks.

In this way, they can begin making cash payments directly to the card issuer, lowering the balance on account, and ultimately pay off the card sooner!

We are looking for physical assets that they may be able to sell on eBay www.ebay.com or Craigslist, www.craigslist.com Maybe a bicycle or train set that has increased in value from childhood can be marketed in this manner. Then they could apply the proceeds from these sales to pay down their credit card debt even faster.

By obtaining employment, selling non-essential items, and working with the credit card issuing companies, their debt can certainly be managed, and with careful spending habits applied in the
future, eliminate their debt entirely.

As we apply these techniques, the family's stress level will be reduced, and once on track they can even plan for a paid vacation from my friends new employer.

Let me know if you liked this post, by commenting below. If you are in debt, check out debtclear, the link is in their text to the right of this post, to see if they might be of some help to you!
Respectfully, Nicholas

Thursday, July 24, 2008

So You Are In Debt?

DISCLAIMER:
The author is not a finance professional, nor does he offer any debt-reduction advice. He is a consumer just like you. The purpose of this blog is to chronicle the history of how he discovered creative ways to assist a friend, in extracting the friend and his family from their debt situation.

In any financial transaction, do consult with trained professionals, and pay their fees.

Finally, your financial situation may not be similar, or even relevant. Caveat Emptor!



So you are in debt?
Who isn't these days?

Statistics reveal the following:


Largest debit card volume in the U.S., 2007
1. Bank of America -- $106.03 billion
2. Wells Fargo -- $54.67 billion
3. JP Morgan Chase -- $37.26 billion
4. Wachovia -- $37.16 billion
5. Washington Mutual -- $35.03 billion
6. US Bank -- $23.03 billion
7. Regions Bank -- $15.29 billion
8. Fifth Third Bank -- $12.19 billion
9. USAA Federal -- $12.03 billion
10. RBS Citizens -- $11.51 billion
(Source: Nilson Report, April 2008)


January 2006 Statistics, Last available:

Total credit card debt in the United States has reached about $665 billion on bank credit cards and about $105 billion on store or gas credit cards. According to the Fed's G19 release, the total is roughly $800 billion.

(Sources: www.cardweb.com and the Federal Reserve)

Average household or individual debt (or both) is about $9,300 per household holding at least one credit card. (Source: www.cardweb.com)

According to the advocacy group Demos, the average balance among lower- and middle-income households is $8,650.

These figures are increasing daily. With the proliferation of credit cards in the general public, the current mortgage loan and foreclosure crisis, and the unemployment rate at a high level, more and more families are funding their living expenses through credit cards.

(Source: http://www.answerbag.com/q_view/132810


A Friend's Debt Picture
My friend is in the same boat. When he was employed, he made over a six-figure yearly income as an Engineer. Now his skills are no longer marketable, he is facing an uncertain employment future. The very nature of the tasks he used to perform have been replaced by software developers and network design engineers.

As he ramps up his risky, but potentially profitable on-line marketing business, with his wife working part-time, and his tiny unemployment checks, they are still short every month to cover their bills. So, out come the credit cards.

They have pulled cash out of their home's equity, in order to remodel the home, so in effect they have extended the payment periods for their home loan, thus adding thousands of dollars in interest payments to their payoff balance and term on the loan.

This situation is reaching critical mass, as they are slowly approaching their credit limits on the credit cards, and the home equity capital is nearly gone. They are facing a huge monthly debt-load payment and possible bankruptcy to keep their home and cars. This is going to require some bold decisions.

If his on-line business is successful, currently a big 'IF', (and he has some of the top marketers in the industry advising him), they may be able to reverse their negative income situation.

The purpose of this blog is to chronicle how they arrived in this credit-crunch situation and the methods they will apply to get out of debt. They do not want to use the option to declare bankruptcy as this would adversely affect their current high credit rating.

They want to honor the credit card issuers, the banks and others, as through no fault of theirs, they have used the credit cards to fund their lifestyle, in one of the most expensive counties in the USA.

As the story unfolds, this blog will detail the previous five years as the debt situation began. The illustrations will no doubt strike a chord with the reader finding themselves in a similar situation?

Thank you for taking the time to read this blog, and please do comment on what you liked or did not like about this post? Respectfully, Nicholas
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