Debt to Wealth on $10 a Day

Money guru Jean Chatzky knows her latest book, “Pay It Down: From Debt to Wealth on $10 a Day,” centers on a gimmick.

10 easy ways to stash away thousands – MSN Money

So what is the gimmick? If you just took $10 a day and saved it that would equal $300 a month, $3,600 a year, $18,000 in 5 years, this is all simple math with out factoring in interest. A gimick that works. The only probelem is it takes discipline to do it and not spend your savings on things versus paying off debt.

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IRS uses private debt collectors

The AP reports The IRS will use private debt collectors to get back taxes. Isn’t that the job of the federal governement? Anyway we should keep an eye on this so the recovery tactics do not get out of hand.

Internal Revenue Service prepares to implement a new program that sends private debt collection agencies after delinquent taxpayers, critics — including several lawmakers and the employee union at the Treasury Department — are gearing up to protest it.Opponents say that the IRS will pay private debt collectors more to do what government-paid employees could do and that the agency is not doing enough to let the public know about the new program, set to launch in early September.

Associated Press Business News: IRS Moves Ahead on Debt-Collection Plan – MSN Money



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Rapid Rescore

Ever wonder how mortgage companies can re-score your account in days to see if you can qualify for a loan? Check out this site below. Very interesting…

What is rapid rescore? Rapid rescore is a way of improving your credit score quickly, by correcting items and then having your credit score “rapidly” corrected. With rapid rescore, things such as charge offs and collections can be corrected. If you pay off a balance on a credit card that can also be taken into account, and can improve your score. Unlike with your typical credit report where changes in your score can take months or even years, rapid rescore makes those changes to your score in days.

Rapid rescore: Increase Your Credit Score Quickly – Associated Content

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Credit repair in an hour

Sounds super fishy to me!!! Has anyone used these guys? If so let us know…

Preferred Credit Solutions provides personalized credit consulting. They review all three credit reports and identify all negative items (derogs) and errors. After the complete review, they create a 2 page credit analysis and action plan detailing exactly what steps need to be taken to improve the consumer’s credit and raise their credit scores. This is all done over the phone and normally takes one hour. The cost is a one time fee of $179. Preferred Credit Solutions offers an unconditional money back guarantee and will refund all $179 if the consumer is not completely satisfied with the service. After the initial credit consultation, Preferred Credit Solutions will also answer all future credit questions for no additional charge. – New Service Announces 1 Hour Plan to Improve Credit Scores

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Escape Debt Hell

This is a great article. It covers different people’s escape from debt. I don’t agree with all the methods used but the bottom line is these people took action to get out of debt and because of it they are living much happier lives, and wealthy… take a look for yourself.

Inga Shivers was working holidays and overtime and lying sleepless at night, juggling the bills in her mind — $55,000 worth — for her nine maxed-out credit-cards. The pharmacist’s exhaustion must have showed, because a kindly colleague who knew of her trouble pulled her aside and told her how he had needed help to dig out from a giant pile of medical bills.In that moment, Shivers, then 34, made her decision. She found a credit counselor, cut up all but one of the credit cards and got on a payment plan. Three and a half years later, she paid off the last of the bills.

Escape stories from debt hell – MSN Money

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Fix credit errors now

I could not agree more with Mrs. Weston. Collection Agencies are ruthless and car not what they do to innocent people. Pull your credit once a year and review and fix errors. At the end of this snippet there are numbers and websites you can contact to get a copy of your credit report.

Collection agencies have become increasingly aggressive about seeking payment on old debts, and some of them aren’t too picky about making sure they’re going after the right people. The result is that someone else’s collection account can land on your credit report, as apparently happened here.Start by pulling your credit reports from all three major credit bureaus: Equifax, Experian and TransUnion. You’re entitled to free reports from each of the bureaus once a year under federal law by calling (877) 322-8228

Don’t let credit-report errors fester – MSN Money

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Right way to Cancel a Credit Card

Be careful when you close a credit card account. Make sure it will not hurt your credit score. Check this resource I found which can help you close the credit card in the right way.

There’s a Right Way, and a Wrong Way, to Cancel a Credit CardThe first thing to do is make sure you have a zero balance on the card or it’s likely your card issuer will raise your interest rate as soon as you’ve cancelled in order to squeeze our as much from you in interest as possible.Start with a phone call, and remember to follow up in writing and to check your credit report to be sure the closure is reported accurately. Some creditors will report the account as “closed by credit grantor” which has a negative connotation and can hurt your credit score.

There’s a Right Way, and a Wrong Way, to Cancel a Credit Card

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Debt is out of control

Debt is out of control but as MP Dunleavey there is a root cause. I agree with what she is saying. I also like to make the analogy of someone who has over the years become very over weight. Once you have gained the weight you need to keep eating the way you are and do little to no exercise to keep the weight on.

The hardest part of loosing weight is changing your eating habits and getting into a work out routine. It take discipline and motivation to start to make the change and finally reach your weight loss goals. I believe this is the exact reason why we get into debt and why it’s so hard for us to get out.

The good news is with discipline and motivation debt can be crushed. It will take time and serious root causes will have to be addressed. Check out MP Dunleavy’s take on debt:

Even though people pay lip service to the gospel that debt is bad, millions of Americans are still borrowing beyond their means, spending like the bills will never come — and saving less and less of their personal disposable income.

I’ve attributed this debt dependency to living in a ridiculous
consumer culture, to humankind’s innate greed, to a Darwinian need to
keep up with Mr. and Ms. Crate&Barrel, to elevated blood levels of
financial denial.

It only occurred to me recently that maybe, deep down, people not only like living on borrowed money, they’ve grown so accustomed to its seductive presence that they can’t imagine a life without owing.

Don’t get too comfy with your debt – MSN Money

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what a bunch of sharks

This is just a snippet of what collection agencies will do. You should go to the link below and find out more. Knowledge is power and from the looks of it we need all the help from companies like CAMCO.

The FTC charged that as much as 80% of the money collected by Capital Acquisitions and Management (CAMCO), a large debt-collection firm, came “from consumers who never owed the original debt in the first place.” These consumers typically paid the company to stop its harassment of themselves, their families, their friends and their co-workers. CAMCO agreed to a $300,000 civil penalty in March 2004, but in the ensuing eight months the problems continued. The FTC received more than 2,000 additional consumer complaints about the company — three times more than the agency received in the two years prior to the settlement. The FTC eventually succeeded in shutting CAMCO down.

Sleazy new debt collector tactics – MSN Money

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What is a good Credit score

BankRate does a good break down of what a credit score is according to FICO. Basically the top score is a 850 and the low is a 300. Average score is 723. 40% of all people have good credit

But when it comes to credit scores, one of the most common versions is the FICO score. “It’s the 800-pound gorilla,” says Craig Watts, public affairs manager with Fair Isaac Corp., the company that pioneered credit scoring and introduced FICO scores about 17 years ago.

A FICO score can range from 300 (very bad) to 850 (very good). The average is about 723, according to Fair Isaac statistics.

Some reassuring news: The majority of consumers have good credit. Forty-five percent of consumers have a score between 700 and 799, and 13 percent score above 800, according to statistics from Fair Isaac.

Just like the SATs, perfect scores are rare. Even though 850 FICO scores do exist, high scores taper off around 825, says Sweet. “You can’t get much better — that’s pretty much walking on water,” she says.

Now for the rest of the population: 27 percent rank above 600, and 13 percent weigh in above 500. Only 2 percent have scores of 500 or below, according to Fair Isaac numbers.

What, exactly, is ‘good’ credit? (Page 1 of 2)

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