Tuesday, September 9, 2008

Some Success!

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