Comments on: Two Approaches to Debt Elimination http://www.getrichslowly.org/blog/2006/04/26/two-approaches-to-debt-elimination/ Personal finance that makes cents. Common sense advice on topics from high interest savings accounts, frugality, cd rates, money market accounts, mortgage rates, how to get out of debt, money management and more. Sat, 20 Mar 2010 16:34:02 +0000 http://wordpress.org/?v=2.7.1 hourly 1 By: rama http://www.getrichslowly.org/blog/2006/04/26/two-approaches-to-debt-elimination/#comment-262261 rama Tue, 23 Feb 2010 15:15:11 +0000 http://www.getrichslowly.org/blog/2006/04/26/two-approaches-to-debt-elimination/#comment-262261 When we get into trouble with debt and would want to get over it, we have strategies to turn to, a <a href="http://www.debteliminationamerica.com/" rel="nofollow">credit card debt elimination program</a> to rely on. But, I think the most important thing to do so as not to get into a sticky debt situation or never again fall into it is really very simple-- living simply. Yep, living simply by living within your means! Nothing can beat that! ;) When we get into trouble with debt and would want to get over it, we have strategies to turn to, a credit card debt elimination program to rely on. But, I think the most important thing to do so as not to get into a sticky debt situation or never again fall into it is really very simple– living simply. Yep, living simply by living within your means! Nothing can beat that! ;)

]]> By: Holden http://www.getrichslowly.org/blog/2006/04/26/two-approaches-to-debt-elimination/#comment-220025 Holden Wed, 20 Jan 2010 18:54:28 +0000 http://www.getrichslowly.org/blog/2006/04/26/two-approaches-to-debt-elimination/#comment-220025 I just started Ramsey's Baby Step #2 and really wondered about his Snowball Method and recommendation to pay off smallest to largest debts (regardless of interest rate). His method seemed to fly in the face of some of his general attitude towards debt (particularly with regards to credit cards and interest rates). But I really think there is a HUGE advantage to the pyschology of having some quick "wins". I know that it's a motivating factor to me to cross things off my debt list. I'm actually keeping track of my progress at - http://thedebtmarch.wordpress.com - it's a great way to hold myself accountable. And while I may have the discipline to pay off my debt with the other method you outline (the one traditionally advocated by financial advisors), I have to be honest with myself that it's a lack of financial discipline that got me in the mess I'm in. Anyways, enjoyed the article and I for one think Ramsey's Snowball Debt approach - especially the pyschology behind - makes the most sense. I just started Ramsey’s Baby Step #2 and really wondered about his Snowball Method and recommendation to pay off smallest to largest debts (regardless of interest rate). His method seemed to fly in the face of some of his general attitude towards debt (particularly with regards to credit cards and interest rates). But I really think there is a HUGE advantage to the pyschology of having some quick “wins”. I know that it’s a motivating factor to me to cross things off my debt list. I’m actually keeping track of my progress at - http://thedebtmarch.wordpress.com - it’s a great way to hold myself accountable. And while I may have the discipline to pay off my debt with the other method you outline (the one traditionally advocated by financial advisors), I have to be honest with myself that it’s a lack of financial discipline that got me in the mess I’m in. Anyways, enjoyed the article and I for one think Ramsey’s Snowball Debt approach - especially the pyschology behind - makes the most sense.

]]> By: Theresa http://www.getrichslowly.org/blog/2006/04/26/two-approaches-to-debt-elimination/#comment-212662 Theresa Sun, 13 Dec 2009 03:14:20 +0000 http://www.getrichslowly.org/blog/2006/04/26/two-approaches-to-debt-elimination/#comment-212662 Maybe someone can answer this for me. I just bought "The Total Money Makeover" yesterday and am almost done reading it and really love the way the steps are laid out. The thing I can't seem to find an answer on is do I include charge-offs in my debt snowball? At some point they will need to be paid off but since I am no longer accruing interest on them and I don't make monthly payments on them, while they are personal debt that needs to be paid off, do they need to be included in step two or should I wait and tackle them later? Maybe someone can answer this for me. I just bought “The Total Money Makeover” yesterday and am almost done reading it and really love the way the steps are laid out. The thing I can’t seem to find an answer on is do I include charge-offs in my debt snowball? At some point they will need to be paid off but since I am no longer accruing interest on them and I don’t make monthly payments on them, while they are personal debt that needs to be paid off, do they need to be included in step two or should I wait and tackle them later?

]]> By: Karen http://www.getrichslowly.org/blog/2006/04/26/two-approaches-to-debt-elimination/#comment-187285 Karen Thu, 16 Jul 2009 19:46:41 +0000 http://www.getrichslowly.org/blog/2006/04/26/two-approaches-to-debt-elimination/#comment-187285 There is only one way I know of to have all your debts on your credit report satisfied. It is through a private association. The congress gave this to us and made it happen until September 30th 2009. Most people know nothing about it. Here are the FAQ's. Call me after you have read them. Q1 - What is the Tax Credit Process (TCP)? A1 - The TCP is performed by a service provider (SP) with 20 + years of experience working inside the IRS. The SP is an enrolled agent with 7 + years of experience filing personal and business tax returns for their customers. It is a family business. They do things by the book and they follow the law. They will not risk their livelihood to pay off any debt. I cannot tell you exactly how they are working with tax credits to pay off debt. The SP has been interrupted by uninvited guests and they've chosen to use the association as a filter to receive files and communicate with new customers. Q2 - What can the SP do for people/business owners with debt? A2 - The unique process may be used by anybody who has debt including but not limited to mortgages, auto loans, credit cards, lines of credit, student loans, collections, charge offs and child support. We're clarifying whether or not judgments will be accepted by the SP. Business debt may be included in the process if it is personally guaranteed (the company owners used their social security numbers to secure the loans). All debts must appear on either a personal tri-merge or a 3 bureau credit report. Business credit reports do not show trade lines and or account numbers so please supply us with your statements from your personally guaranteed business accounts. A separate TCP submission sheet will be done for the personal guarantees. TCP cannot be used to rescue houses from debt that have already been sold at auction. (in other words you must still be on title and you must still have possession of the home if you wish to include the mortgage accounts in the TCP). We will provide you enough documentation and consultation to possibly give you 3 (or possibly more depending on the state and the situation) months in the home with no mortgage payments being made (while your file is being processed by the SP). Also, if a participant has any outstanding debt with the IRS there must be a payment plan in place with the IRS. In other words it cannot be a dormant lien with no activity. All debt gets relieved and is reflected as zero balance on the credit report. You may keep all of the accounts open after the process is complete. FICO scores are not used in TCP and is available for people with good or bad credit or payment history. There is no income, asset, equity, or credit qualification required to become a participant. Married couples are eligible to pay one up front fee and the standard success fee. Q3 - What other rules apply to participants (and their debt type) who wish to begin the TCP? A3 - This process is available for all US residents. The deb! t amount for each account to be included in the process must be at least $600. The debt must be institutional - meaning from banks, credit unions, credit card issuers, etc. - NOT your relatives, friends etc. Currently, Countrywide is only accepting 60%-80% of the loan amount. We hope that they will accept 100% payoffs soon. Bank of America has purchased Countrywide. They may implement B of A's rules. Each participant must have filed 1040 tax returns for the last 3 years (2006, 2007, & 2008 or an agreed to extension for 2008). Q4 - Why haven't I heard of this before? A4 - The TCP was developed and implemented in 2008. There is no advertising, no website and the SP wants it to remain low key in order to keep it by referral only. The association will only accept business savvy people. The service provider is extremely loyal to the association and will only accept new customers who have been filtered through to them by the association. Nobody will have direct contact with the SP. This will ensure that we'll be able to control the TCP flow of new business and make it available as long as the tax laws remain the same. Q5 - How long does it take to see results? A5 - Once your package is processed by the SP you should have all of your accounts paid in full in 60 days or less. When you have everything on the checklist you can forward the complete file to one of the processing centers. An ORIGINAL Form 100 and an ORIGINAL Hold Harmless agreement is required. Scanning all of your submission will speed up the process. The SP requires a hard copy of the submission as well as the interactive submission sheet for accounting adjustments. When the SP reviews the file and approves it for debt relief, the participant will be required to sign another document for the SP. Q6 - How many people do you know who have made it successfully through the process? A6 - We have some friends of friends who have provided testimonials and we should have our first association members on the call sharing their success stories by the end of June or sometime in July. Q7 - What are the fees & how may I pay them? A7 - The fees are $2,500 - $5,000 to begin processing a file 1% of the outstanding debt. (please ask the person who invited you to the call for more information on the fee breakdown). If for any reason the SP cannot complete the TCP for a participant, all of the money will be refunded other than a $125 processing fee. The $125 is a hard cost incurred by the SP and it cannot be refunded because it goes towards paying the SP staff. You may pay this fee by any! and all means necessary including with a credit card, by Pay Pal, etc. Also, there is a 20% success charge which will be due after the TCP is complete. This may be paid in a variety of ways including: A - all at once by the sale of a home or property (recommended for unemployed people and available for anyone else) B - over 5 years (paid monthly) at 0% interest C - new loans may be easy to secure once the participant is debt free (they should be flooded with offers from many creditors) D - we may work out a separate agreement depending on the circumstances Q8- How does one become a referral source and what is the compensation? A8 - Please ask the people who invited you to the call. We recently formed our association and we're in the final stages of creating our rules, compensation structure, etc. We will fairly compensate everyone involved in referring people to us. It will be a small portion of the application fee and a small portion of the success fee too. It will certainly be a nice income to supplement and or replace most people's income sources. We will start conducting specific conference calls soon for those people who are interested in the referral source opportunity. Q9 - What does the SP require to start the TCP? A9 - A) Become a member of the association by submitting an application (form 100 form - will be given to you). This document must be signed in blue ink by all participants (husband and wife). B) Provide an image of SS Card (for all dependents) and driver's license or other government issued form of ID such as a passport or ID card at 150% zoom with a diagonal line through the image and "void copy" written in red ink 3 times across or on the side without interfering with the image/photo - if married couple, both driver's licenses must be submitted. C) 2006, 2007, & 2008 tax returns (only the first two pages with the signature page included) D) Provide a 3 in 1 (all 3 credit bureaus - Transunion, Equifax and Experian) (we need one that displays all of your account numbers for payoff purposes) you may obtain a free credit report from www.annualcredit.com - you will need to provide a WORD (customer checklist will be provided for you) document with the full account numbers. You may need to cut and paste the details directly from the internet onto another document for us. Some reports will not be provided to you in WORD or PDF format so please make sure that you give us the report in WORD or PDF form. All image docu! ments sh ould be converted to PDF, jpeg, efax, tif files easily convert when opened with Adobe Acrobat. E) Application fee to be made payable to one of our trustees and it must be in the form of a cashiers check, money order, or it can be processed through PayPal for a 2.9% fee (added to the initial fee). F) Complete the TCP Submission Checklist - From your credit report, please type in the account numbers and names of the creditors on a word document as well as the current balance. While we discourage using any credit cards during the process, if absolutely necessary, please scan current statements if different from the TCP submission and forward those to the processing center. G) The entire package must be reviewed by the trustee with the applicant (please e-mail it in PDF form) before it is sent by priority mail with tracking to the trustee's address. This will ensure that it is complete and there will be no loss of time due to incomplete packages. If you're in a 911 situation with your home we will need your: AA - mortgage note BB - deed of trust CC - notice of default DD - notice of trustee's sale AA - DD from your first mortgage lender to begin stalling the foreclosure. If your first mortgage was funded in the last 3 years we may require some additional documentation to strengthen your case against the lender. These documents would include your: AAA - Federal Truth in Lending BBB - Hud-1 or Settlement Statement CCC - ? Q10 - What if the SP cannot process a potential participant's file for any reason? A10 - We have other avenues to provide debt relief. We would be happy to discuss those with people on a one on one call. Please ask the person who invited you to the call to schedule that separate call with Kirby. Q11 - Can I get just credit card debt eliminated? A11 - Yes. However, you must pay all of the fees including the 20% at the time of application and acceptance. Q12 - May I advertise to generate leads/customers? A12 - We prefer that you use your warm circle of influence. We want to keep it small now and we'll be ramping up with sophisticated software tracking systems and staff soon. You may wish to acquire lists of people who have resetting (pay option) loans. Ask Kirby for more details on pricing and customization of those lists specific to zip code, loan amount, etc. Q13 - May I start out with some of my debt and add more after I see some results? A13 - A participant cannot select which accounts they want paid off (pick and choose) by adding some later in a certain year. Furthermore, if the laws change and this process is not available in 2010, a potential participant could be very disappointed. It makes good economic sense to have as much debt paid off as possible while the opportunity exists. Q14 - How will this affect my credit rating? A14 - Your FICO score will improve because your debt will be paid off and show a zero balance on your credit report (see info below to learn more about your FICO score). FIVE FACTORS Payment History = 35% Debt Ratio: Balance/Limits = 30% Length of Credit History = 15% Types of Credit = 10% Number of Inquires = 10% FIVE SOLUTIONS Remove the "Bad Credit" "Rapid Rescore" your existing credit Add a "Seasoned Trade line" Add different "Types of Credit" Remove "Inquires" Q15 - Can I use my credit cards or accounts after starting the process? A15 - Please refrain from using them during the 60 days that you're in the process. If an emergency occurs and you need to make a charge, please let us know which account you used and how much you charged. Q16 - How will this process affect my ability to get a loan or re-finance? A16 - The TCP will greatly enhance your ability to secure various lines of credit for many reasons. Please see A14 and set up a time to speak with a trustee for more details. Thanks for reviewing the details of this unique process. Our goal is to provide these solutions to as many people as possible and as fast as possible while keeping the integrity of the service provider and while maintaining the high level of service that is required to deliver the solutions in a timely and an efficient manner. The association is built on integrity, it's by referral only, and membership is reserved for business savvy people and or those who are willing to learn the basic truths of the monetary system (that aren't taught in school). Q17 - Do I need an appraisal of the property to do this process? A17 - No, the value that is the appreciation and success fee is based upon the total amount of the debt relieved through the application of the tax credits. Q18 - If someone has a leased vehicle can it be included? A18 - The payoff on an auto lease will depend on the amount reflected as the original financed amount. If only the "financed" amount is shown on the credit report and or the most recent statement, the payoff will only be for the lease period and the car will have to be returned at the end of the lease period. However, if the balance of the car's full price is listed, then it will be paid off in full. The worst case would be to have only the lease price paid off and then at the end of the lease period, refinance and include the price in next TCP. Q19 -What will happen when the service provider (SP) has approved my file? A19 - You will receive a document from the SP in the mail. Please sign it in blue ink, keep a copy of it and return it the SP by private courier with a tracking number (Fed Ex or UPS). Please do not use USPS and please do not request a signature for the delivery of the letter as this could cause unnecessary delays. Q20 - How do I know if my debt is being paid off (if I'm experiencing success)? A20 - You may: A - call the toll free number on your account statements B - monitor credit reports from reporting services C - wait for statements from the creditors to arrive Q21 - How do I protect my identity? A21 - Identity theft is major concern for many people. Please contact your insurance company to learn more about plans to make you feel more comfortable and you may wish to use http://www.lifelock.com/ Please pull your credit report before you subscribe to an identity protection service. Please review this list of what we will NOT (tolerate) be discussing on the call: 1 - politics 2 - 1099 OID (ZYA) 3 - any negative comments (please keep those to yourself and discuss any of those with the people who invited you to the call - we're always open to improving the TCP and we welcome your constructive criticism, just not on the introduction call) 4 - any other topic that has nothing to do with this process Thank you for your time. We appreciate your interest in the TCP and we're looking forward to initiating a long lasting business relationship with you and we're looking forward to establishing a long lasting friendship with you too. Best, The Association - REVISED 6-22-09 I would like to invite you on to the call Sat 12:00 PM PDT or Tues 6:00 PM PDT. Hope this helps the people that are attracting financial freedom! Keep up the goood work! ! ! Karen Karen Svihus 831-688-8253 rosebud88@charter.net There is only one way I know of to have all your debts on your credit report satisfied. It is through a private association. The congress gave this to us and made it happen until September 30th 2009. Most people know nothing about it. Here are the FAQ’s. Call me after you have read them. Q1 - What is the Tax Credit Process (TCP)? A1 - The TCP is performed by a service provider (SP) with 20 + years of experience working inside the IRS. The SP is an enrolled agent with 7 + years of experience filing personal and business tax returns for their customers. It is a family business. They do things by the book and they follow the law. They will not risk their livelihood to pay off any debt. I cannot tell you exactly how they are working with tax credits to pay off debt. The SP has been interrupted by uninvited guests and they’ve chosen to use the association as a filter to receive files and communicate with new customers.
Q2 - What can the SP do for people/business owners with debt? A2 - The unique process may be used by anybody who has debt including but not limited to mortgages, auto loans, credit cards, lines of credit, student loans, collections, charge offs and child support. We’re clarifying whether or not judgments will be accepted by the SP. Business debt may be included in the process if it is personally guaranteed (the company owners used their social security numbers to secure the loans). All debts must appear on either a personal tri-merge or a 3 bureau credit report. Business credit reports do not show trade lines and or account numbers so please supply us with your statements from your personally guaranteed business accounts. A separate TCP submission sheet will be done for the personal guarantees. TCP cannot be used to rescue houses from debt that have already been sold at auction. (in other words you must still be on title and you must still have possession of the home if you wish to include the mortgage accounts in the TCP). We will provide you enough documentation and consultation to possibly give you 3 (or possibly more depending on the state and the situation) months in the home with no mortgage payments being made (while your file is being processed by the SP). Also, if a participant has any outstanding debt with the IRS there must be a payment plan in place with the IRS. In other words it cannot be a dormant lien with no activity. All debt gets relieved and is reflected as zero balance on the credit report. You may keep all of the accounts open after the process is complete. FICO scores are not used in TCP and is available for people with good or bad credit or payment history. There is no income, asset, equity, or credit qualification required to become a participant. Married couples are eligible to pay one up front fee and the standard success fee. Q3 - What other rules apply to participants (and their debt type) who wish to begin the TCP? A3 - This process is available for all US residents. The deb!
t amount
for each account to be included in the process must be at least $600. The debt must be institutional -
meaning from banks, credit unions, credit card issuers, etc. - NOT your relatives, friends etc. Currently, Countrywide is only accepting 60%-80% of the loan amount. We hope that they will accept 100% payoffs soon. Bank of America has purchased Countrywide. They may implement B of A’s rules. Each participant must have filed 1040 tax returns for the last 3 years (2006, 2007, & 2008 or an agreed to extension for 2008).
Q4 - Why haven’t I heard of this before? A4 - The TCP was developed and implemented in 2008. There is no advertising, no website and the SP wants it to remain low key in order to keep it by referral only. The association will only accept business savvy people. The service provider is extremely loyal to the association and will only accept new customers who have been filtered through to them by the association. Nobody will have direct contact with the SP. This will ensure that we’ll be able to control the TCP flow of new business and make it available as long as the tax laws remain the same. Q5 - How long does it take to see results? A5 - Once your package is processed by the SP you should have all of your accounts paid in full in 60 days or less. When you have everything on the checklist you can forward the complete file to one of the processing centers. An ORIGINAL Form 100 and an ORIGINAL Hold Harmless agreement is required. Scanning all of your submission will speed up the process. The SP requires a hard copy of the submission as well as the interactive submission sheet for accounting adjustments. When the SP reviews the file and approves it for debt relief, the participant will be required to sign another document for the SP. Q6 - How many people do you know who have made it successfully through the process? A6 - We have some friends of friends who have provided testimonials and we should have our first association members on the call sharing their success stories by the end of June or sometime in July. Q7 - What are the fees & how may I pay them? A7 - The fees are $2,500 - $5,000 to begin processing a file 1% of the outstanding debt. (please ask the person who invited you to the call for more information on the fee breakdown). If for any reason the SP cannot complete the TCP for a participant, all of the money will be refunded other than a $125 processing fee. The $125 is a hard cost incurred by the SP and it cannot be refunded because it goes towards paying the SP staff. You may pay this fee by any!
and all
means necessary including with a credit card,
by Pay Pal, etc. Also, there is a 20% success charge which will be due after the TCP is complete. This may be paid in a variety of ways including: A - all at once by the sale of a home or property
(recommended for unemployed people and available for anyone else) B - over 5 years (paid monthly) at 0% interest C - new loans may be easy to secure once the participant is debt free
(they should be flooded with offers from many creditors) D - we may work out a separate agreement depending on the circumstances Q8- How does one become a referral source and what is the compensation? A8 - Please ask the people who invited you to the call. We recently formed our association and we’re in the final stages of creating our rules, compensation structure, etc. We will fairly compensate everyone involved in referring people to us. It will be a small portion of the application fee and a small portion of the success fee too. It will certainly be a nice income to supplement and or replace most people’s income sources. We will start conducting specific conference calls soon for those people who are interested in the referral source opportunity. Q9 - What does the SP require to start the TCP? A9 - A) Become a member of the association by submitting an application (form 100 form - will be given to you). This document must be signed in blue ink by all participants (husband and wife). B) Provide an image of SS Card (for all dependents) and driver’s license or other government issued form of ID such as a passport or ID card at 150% zoom with a diagonal line through the image and “void copy” written in red ink 3 times across or on the side without interfering with the image/photo - if married couple, both driver’s licenses must be submitted. C) 2006, 2007, & 2008 tax returns (only the first two pages with the signature page included) D) Provide a 3 in 1 (all 3 credit bureaus - Transunion, Equifax and Experian) (we need one that displays all of your account numbers for payoff purposes) you may obtain a free credit report from http://www.annualcredit.com - you will need to provide a WORD (customer checklist will be provided for you) document with the full account numbers. You may need to cut and paste the details directly from the internet onto another document for us. Some reports will not be provided to you in WORD or PDF format so please make sure that you give us the report in WORD or PDF form. All image docu!
ments sh
ould be converted to PDF, jpeg, efax, tif files easily convert when opened with Adobe Acrobat. E) Application fee to be made payable to one of our trustees and it must be in the form of a cashiers check, money order, or it can be processed through PayPal for a
2.9% fee (added to the initial fee). F) Complete the TCP Submission Checklist - From your credit report, please type in the account numbers and names of the creditors on a word document as well as the current balance. While we discourage using any credit cards during the process, if absolutely necessary, please scan current statements if different from the TCP submission and forward those to the processing center.
G) The entire package must be reviewed by the trustee with the applicant (please e-mail it in PDF form) before it is sent by priority mail with tracking to the trustee’s address. This will ensure that it is complete and there will be no loss of time due to incomplete packages. If you’re in a 911 situation with your home we will need your: AA - mortgage note BB - deed of trust CC - notice of default DD - notice of trustee’s sale AA - DD from your first mortgage lender to begin stalling the foreclosure. If your first mortgage was funded in the last 3 years we may require some additional documentation to strengthen your case against the lender. These documents would include your: AAA - Federal Truth in Lending BBB - Hud-1 or Settlement Statement CCC - ? Q10 - What if the SP cannot process a potential participant’s file for any reason? A10 - We have other avenues to provide debt relief. We would be happy to discuss those with people on a one on one call. Please ask the person who invited you to the call to schedule that separate call with Kirby. Q11 - Can I get just credit card debt eliminated? A11 - Yes. However, you must pay all of the fees including the 20% at the time of application and acceptance. Q12 - May I advertise to generate leads/customers? A12 - We prefer that you use your warm circle of influence. We want to keep it small now and we’ll be ramping up with sophisticated software tracking systems and staff soon. You may wish to acquire lists of people who have resetting (pay option) loans. Ask Kirby for more details on pricing and customization of those lists specific to zip code, loan amount, etc.
Q13 - May I start out with some of my debt and add more after I see some results? A13 - A participant cannot select which accounts they want paid off (pick and choose) by adding some later in a certain year. Furthermore, if the laws change and this process is not available in 2010, a potential participant could be very disappointed. It makes good economic sense to have as much debt paid off as possible while the opportunity exists. Q14 - How will this affect my credit rating? A14 - Your FICO score will improve because your debt will be paid off and show a zero balance on your credit report (see info below to learn more about your FICO score). FIVE FACTORS Payment History = 35% Debt Ratio: Balance/Limits = 30% Length of Credit History = 15% Types of Credit = 10% Number of Inquires = 10% FIVE SOLUTIONS Remove the “Bad Credit” “Rapid Rescore” your existing credit Add a “Seasoned Trade line” Add different “Types of Credit” Remove “Inquires” Q15 - Can I use my credit cards or accounts after starting the process? A15 - Please refrain from using them during the 60 days that you’re in the process.
If an emergency occurs and you need to make a charge, please let us know which account you used and how much you charged. Q16 - How will this process affect my ability to get a loan or re-finance? A16 - The TCP will greatly enhance your ability to secure various lines of credit for many reasons. Please see A14 and set up a time to speak with a trustee for more details. Thanks for reviewing the details of this unique process. Our goal is to provide these solutions to as many people as possible and as fast as possible while keeping the integrity of the service provider and while maintaining the high level of service that is
required to deliver the solutions in a timely and an efficient manner. The association is built on integrity, it’s by referral only, and membership is reserved for business savvy people and or those who are willing to learn the basic truths of the monetary system (that aren’t taught in school).
Q17 - Do I need an appraisal of the property to do this process?
A17 - No, the value that is the appreciation and success fee is based upon the total amount of the debt relieved through the application of the tax credits.
Q18 - If someone has a leased vehicle can it be included?
A18 - The payoff on an auto lease will depend on the amount reflected as the original financed amount. If only the “financed” amount is shown on the credit report and or the most recent statement, the payoff will only be for the lease period and the car will have to be returned at the end of the lease period. However, if the balance of the car’s full price is listed, then it will be paid off in full. The worst case would be to have only the lease price paid off and then at the end of the lease period, refinance and include the price in next TCP.
Q19 -What will happen when the service provider (SP) has approved my file?
A19 - You will receive a document from the SP in the mail. Please sign it in blue ink, keep a copy of it and return it the SP by private courier with a tracking number (Fed Ex or UPS). Please do not use USPS and please do not request a signature for the delivery of the letter as this could cause unnecessary delays.
Q20 - How do I know if my debt is being paid off (if I’m experiencing success)?
A20 - You may:
A - call the toll free number on your account statements
B - monitor credit reports from reporting services
C - wait for statements from the creditors to arrive
Q21 - How do I protect my identity?
A21 - Identity theft is major concern for many people. Please contact your insurance company to learn more about plans to make you feel more comfortable and you may wish to use http://www.lifelock.com/
Please pull your credit report before you subscribe to an identity protection service.
Please review this list of what we will NOT (tolerate) be discussing on the call: 1 - politics 2 - 1099 OID (ZYA) 3 - any negative comments (please keep those to yourself and discuss any of those with the people who invited you to the call - we’re always open to improving the TCP and we welcome your constructive criticism, just not on the introduction call) 4 - any other topic that has nothing to do with this process Thank you for your time. We appreciate your interest in the TCP and we’re looking forward to initiating a long lasting business relationship with you and we’re looking forward to establishing a long lasting friendship with you too. Best, The Association - REVISED 6-22-09
I would like to invite you on to the call Sat 12:00 PM PDT or Tues 6:00 PM PDT.
Hope this helps the people that are attracting financial freedom!

Keep up the goood work! ! !

Karen

Karen Svihus
831-688-8253
rosebud88@charter.net

]]> By: Peter N Lewis http://www.getrichslowly.org/blog/2006/04/26/two-approaches-to-debt-elimination/#comment-137577 Peter N Lewis Tue, 24 Jun 2008 14:00:41 +0000 http://www.getrichslowly.org/blog/2006/04/26/two-approaches-to-debt-elimination/#comment-137577 The financial cost (Snowball vs Rational) probably isn't really as much as you might imagine in many cases. For one thing, large percentage loans are probably often the smaller ones anyway, so the two methods will align to some degree. But for amusement sake, I did a rough run of the numbers, assuming the minimum payment was simply the interest (which makes for a minimum payment per month of around $190) and assuming $500/month paid in to debt. The results with Snowball is your first loan paid back after 7 months, as opposed to 24 months for Rational. After 37 months, you have paid all except the college loan on Snowball, whereas Rational would still have two loans (Car & College), but the interesting thing is that you're only about $600 worse off (ie, screwing up for just 1 month would make you about even). So any emotional benefit from Snowball is almost certainly enough to make it the better "rational" choice. The financial cost (Snowball vs Rational) probably isn’t really as much as you might imagine in many cases. For one thing, large percentage loans are probably often the smaller ones anyway, so the two methods will align to some degree. But for amusement sake, I did a rough run of the numbers, assuming the minimum payment was simply the interest (which makes for a minimum payment per month of around $190) and assuming $500/month paid in to debt.

The results with Snowball is your first loan paid back after 7 months, as opposed to 24 months for Rational.

After 37 months, you have paid all except the college loan on Snowball, whereas Rational would still have two loans (Car & College), but the interesting thing is that you’re only about $600 worse off (ie, screwing up for just 1 month would make you about even). So any emotional benefit from Snowball is almost certainly enough to make it the better “rational” choice.

]]> By: Carnival of Debt Reduction » Blog Archive » Flashback: Mind over matter http://www.getrichslowly.org/blog/2006/04/26/two-approaches-to-debt-elimination/#comment-132710 Carnival of Debt Reduction » Blog Archive » Flashback: Mind over matter Sat, 17 May 2008 02:28:51 +0000 http://www.getrichslowly.org/blog/2006/04/26/two-approaches-to-debt-elimination/#comment-132710 [...] Frugal for Life hosted Carnival of Debt Reduction #34, and this week’s Flashback comes from Get Rich Slowly: Two Approaches to Debt Elimination. [...] [...] Frugal for Life hosted Carnival of Debt Reduction #34, and this week’s Flashback comes from Get Rich Slowly: Two Approaches to Debt Elimination. [...]

]]> By: Omniboy http://www.getrichslowly.org/blog/2006/04/26/two-approaches-to-debt-elimination/#comment-121049 Omniboy Thu, 06 Mar 2008 08:00:10 +0000 http://www.getrichslowly.org/blog/2006/04/26/two-approaches-to-debt-elimination/#comment-121049 No Financial advisor would ever recommend paying off in this order: (and if they did, ignore them) # 2,000 computer loan at 10% # $3,000 car loan at 4% # $8,000 credit card balance at 12% # $20,000 college loan at 5% 5%apr of 20,000 is more than 12%apr of 8,000. You shouldn't look at the interest, look at the total cost. No Financial advisor would ever recommend paying off in this order: (and if they did, ignore them)

# 2,000 computer loan at 10%
# $3,000 car loan at 4%
# $8,000 credit card balance at 12%
# $20,000 college loan at 5%

5%apr of 20,000 is more than 12%apr of 8,000.

You shouldn’t look at the interest, look at the total cost.

]]> By: Abdurasool http://www.getrichslowly.org/blog/2006/04/26/two-approaches-to-debt-elimination/#comment-89392 Abdurasool Tue, 12 Jun 2007 06:21:07 +0000 http://www.getrichslowly.org/blog/2006/04/26/two-approaches-to-debt-elimination/#comment-89392 If you are trying to reduce your debts, you need to avoid the Top 10 Debt Reduction mistakes at all costs: www.3debtconsolidation.com/debt-reduction-mistakes.html The first rule is to spend much lesser than you earn, so that you have lots of disposable income left over to pay off any outstanding debts... If you are trying to reduce your debts, you need to avoid the Top 10 Debt Reduction mistakes at all costs: http://www.3debtconsolidation.com/debt-reduction-mistakes.html

The first rule is to spend much lesser than you earn, so that you have lots of disposable income left over to pay off any outstanding debts…

]]> By: Ron Davis http://www.getrichslowly.org/blog/2006/04/26/two-approaches-to-debt-elimination/#comment-83656 Ron Davis Fri, 13 Apr 2007 04:18:02 +0000 http://www.getrichslowly.org/blog/2006/04/26/two-approaches-to-debt-elimination/#comment-83656 I'm trying to get out of debt and started to track my expenses a lot closer. I tried MS Money to do this and also found this handy web site; http://www.expenseview.com. I liked the site because it was free and it really broke down where I was spending my money. I’m trying to get out of debt and started to track my expenses a lot closer. I tried MS Money to do this and also found this handy web site; http://www.expenseview.com. I liked the site because it was free and it really broke down where I was spending my money.

]]> By: Robert k. Tompsett http://www.getrichslowly.org/blog/2006/04/26/two-approaches-to-debt-elimination/#comment-83329 Robert k. Tompsett Sat, 07 Apr 2007 23:56:12 +0000 http://www.getrichslowly.org/blog/2006/04/26/two-approaches-to-debt-elimination/#comment-83329 I'm 57, unemployed, looking for work. I owe $26,000.00 in two credit cards a small loan, and my car loan. I just cut up my VISA, and my Pepboys cards. I feel better already. I’m 57, unemployed, looking for work. I owe $26,000.00 in two credit cards a small loan, and my car loan. I just cut up my VISA, and my Pepboys cards. I feel better already.

]]> By: Money Talk 1: Debt » Ed’s Rants and Raves http://www.getrichslowly.org/blog/2006/04/26/two-approaches-to-debt-elimination/#comment-45233 Money Talk 1: Debt » Ed’s Rants and Raves Mon, 15 Jan 2007 04:51:16 +0000 http://www.getrichslowly.org/blog/2006/04/26/two-approaches-to-debt-elimination/#comment-45233 [...] There are also differing opinions on how to best pay off existing debts.  The mathematical winner is to pay off the debts with the highest interest rates first.  However, despite what my high school math teacher led me to believe, mathematics isn’t everything.  Many times, however, the loans with the highest interest rates are also the largest.  Paying these off first can be discouraging since progress is slow.  Another method that combats this is called the Debt Snowball.  More can be read about it here, but the premise is to payoff the smallest debts first regardless of interest rate.  Then when that debt is paid off, move to the second smallest but use the additional money from the missing debt payment.  By the time the largest debt is being paid off, the extra payments will have ’snowballed’ causing it to be paid off quickly. [...] [...] There are also differing opinions on how to best pay off existing debts.  The mathematical winner is to pay off the debts with the highest interest rates first.  However, despite what my high school math teacher led me to believe, mathematics isn’t everything.  Many times, however, the loans with the highest interest rates are also the largest.  Paying these off first can be discouraging since progress is slow.  Another method that combats this is called the Debt Snowball.  More can be read about it here, but the premise is to payoff the smallest debts first regardless of interest rate.  Then when that debt is paid off, move to the second smallest but use the additional money from the missing debt payment.  By the time the largest debt is being paid off, the extra payments will have ’snowballed’ causing it to be paid off quickly. [...]

]]> By: Get Rich Slowly » In Praise of the Debt Snowball http://www.getrichslowly.org/blog/2006/04/26/two-approaches-to-debt-elimination/#comment-9138 Get Rich Slowly » In Praise of the Debt Snowball Thu, 28 Sep 2006 16:12:04 +0000 http://www.getrichslowly.org/blog/2006/04/26/two-approaches-to-debt-elimination/#comment-9138 [...] (For more on this, including some actual figures, see my entry on two approaches to debt elimination.) [...] [...] (For more on this, including some actual figures, see my entry on two approaches to debt elimination.) [...]

]]> By: Get Rich Slowly » The Only Credit Card Guide You’ll Ever Need http://www.getrichslowly.org/blog/2006/04/26/two-approaches-to-debt-elimination/#comment-6047 Get Rich Slowly » The Only Credit Card Guide You’ll Ever Need Fri, 25 Aug 2006 20:23:27 +0000 http://www.getrichslowly.org/blog/2006/04/26/two-approaches-to-debt-elimination/#comment-6047 [...] I have a lot of credit card debt — how do I pay it off? Don’t listen to anyone who tells you there’s only one way. There are a number of approaches, and the important thing is to pick the one that works for you. I’ve written about two popular approaches to debt elimination. Pick the one that works best for your personal psychology. [...] [...] I have a lot of credit card debt — how do I pay it off? Don’t listen to anyone who tells you there’s only one way. There are a number of approaches, and the important thing is to pick the one that works for you. I’ve written about two popular approaches to debt elimination. Pick the one that works best for your personal psychology. [...]

]]> By: Get Rich Slowly » How to Escape from Debt Hell http://www.getrichslowly.org/blog/2006/04/26/two-approaches-to-debt-elimination/#comment-5901 Get Rich Slowly » How to Escape from Debt Hell Wed, 23 Aug 2006 15:09:43 +0000 http://www.getrichslowly.org/blog/2006/04/26/two-approaches-to-debt-elimination/#comment-5901 [...] Find a system that works for you and focus on it intently. There are many approaches to debt reduction. Do what works for you. If you need a credit counselor to help guide you, find one. If you have the time and ability to work extra jobs, do it. [...] [...] Find a system that works for you and focus on it intently. There are many approaches to debt reduction. Do what works for you. If you need a credit counselor to help guide you, find one. If you have the time and ability to work extra jobs, do it. [...]

]]> By: Get Rich Slowly » Pep Talk: Climb Out of Debt http://www.getrichslowly.org/blog/2006/04/26/two-approaches-to-debt-elimination/#comment-3370 Get Rich Slowly » Pep Talk: Climb Out of Debt Fri, 21 Jul 2006 02:54:43 +0000 http://www.getrichslowly.org/blog/2006/04/26/two-approaches-to-debt-elimination/#comment-3370 [...] You might notice that there’s some conflicting advice in this thread. “Pay off your highest interest rate debts first.” “No! Pay off your lowest balance debts first.” Etc. Different methods work for different people. Yes, there are theoretical “best methods”, but so what? [...] [...] You might notice that there’s some conflicting advice in this thread. “Pay off your highest interest rate debts first.” “No! Pay off your lowest balance debts first.” Etc. Different methods work for different people. Yes, there are theoretical “best methods”, but so what? [...]

]]> By: Get Rich Slowly » Get Rich Slowly in the Wall Street Journal http://www.getrichslowly.org/blog/2006/04/26/two-approaches-to-debt-elimination/#comment-863 Get Rich Slowly » Get Rich Slowly in the Wall Street Journal Sun, 25 Jun 2006 20:34:47 +0000 http://www.getrichslowly.org/blog/2006/04/26/two-approaches-to-debt-elimination/#comment-863 [...] You hear me say this often: Do what works for you. There are many personal finance books, and a lot of theories. Some have survived the test of time, but not all of them work for every person. Try what the experts recommend, but if the advice doesn’t help you reach your goals, look for a variation. (For example, I had trouble paying down my debts until I followed Dave Ramsey’s advice to use a Debt Snowball, paying off my smallest debts first instead of those sporting the largest interest rates.) [...] [...] You hear me say this often: Do what works for you. There are many personal finance books, and a lot of theories. Some have survived the test of time, but not all of them work for every person. Try what the experts recommend, but if the advice doesn’t help you reach your goals, look for a variation. (For example, I had trouble paying down my debts until I followed Dave Ramsey’s advice to use a Debt Snowball, paying off my smallest debts first instead of those sporting the largest interest rates.) [...]

]]> By: Get Rich Slowly » How I Choose Personal Finance Books http://www.getrichslowly.org/blog/2006/04/26/two-approaches-to-debt-elimination/#comment-715 Get Rich Slowly » How I Choose Personal Finance Books Tue, 20 Jun 2006 17:38:24 +0000 http://www.getrichslowly.org/blog/2006/04/26/two-approaches-to-debt-elimination/#comment-715 [...] For years, as I struggled with debt and reckless spending, the only personal finance books that appealed to me were those promising quick riches. A few Christmases ago, after listening to my financial woes, a friend mailed me a copy of Your Money or Your Life. I flipped through it half-heartedly, and then put it on the shelf. It sat there for two years before my debt burden became so overwhelming that I pulled it down and read it. I was impressed. Another friend then recommended Dave Ramsey’s The Total Money Makeover. I put Ramsey’s “debt snowball” method to work, and suddenly saw progress in debt elimination where I’d never been able to succeed before. [...] [...] For years, as I struggled with debt and reckless spending, the only personal finance books that appealed to me were those promising quick riches. A few Christmases ago, after listening to my financial woes, a friend mailed me a copy of Your Money or Your Life. I flipped through it half-heartedly, and then put it on the shelf. It sat there for two years before my debt burden became so overwhelming that I pulled it down and read it. I was impressed. Another friend then recommended Dave Ramsey’s The Total Money Makeover. I put Ramsey’s “debt snowball” method to work, and suddenly saw progress in debt elimination where I’d never been able to succeed before. [...]

]]> By: Get Rich Slowly » Handy Personal Finance Spreadsheets http://www.getrichslowly.org/blog/2006/04/26/two-approaches-to-debt-elimination/#comment-125 Get Rich Slowly » Handy Personal Finance Spreadsheets Thu, 25 May 2006 16:28:57 +0000 http://www.getrichslowly.org/blog/2006/04/26/two-approaches-to-debt-elimination/#comment-125 [...] If, like me, you’re following the debt snowball method of debt reduction, check out Mr. Peanut’s Debt Snowball Calculator. [...] [...] If, like me, you’re following the debt snowball method of debt reduction, check out Mr. Peanut’s Debt Snowball Calculator. [...]

]]> By: Get Rich Slowly » Best Decisions vs. Financially Smart Decisions http://www.getrichslowly.org/blog/2006/04/26/two-approaches-to-debt-elimination/#comment-11 Get Rich Slowly » Best Decisions vs. Financially Smart Decisions Wed, 03 May 2006 16:12:41 +0000 http://www.getrichslowly.org/blog/2006/04/26/two-approaches-to-debt-elimination/#comment-11 [...] This dichotomy — Best Decisions versus Financially Smart Decisions — reminds me of the Debt Snowball method of debt reduction I described last week in Two Approaches to Debt Elimination. Paying off your debts from smallest-balance to highest-balance doesn’t make the most sense mathematically, but for many people it is the Best Decision because psychologically it provides short term financial victories that lead to long-term financial independence. [...] [...] This dichotomy — Best Decisions versus Financially Smart Decisions — reminds me of the Debt Snowball method of debt reduction I described last week in Two Approaches to Debt Elimination. Paying off your debts from smallest-balance to highest-balance doesn’t make the most sense mathematically, but for many people it is the Best Decision because psychologically it provides short term financial victories that lead to long-term financial independence. [...]

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