InCharge Debt Solutions

Consumers whack debt back

inchargedebtsolutions — Tue, 15 Sep 2009 13:24:11 +0000

Like a suburban homeowner attacking a growing plot of weeds, American consumers weed-whacked their debt by a record 21.6 billion with a “b” dollars in July, according to the Federal Reserve. The good news is that we’ve whacked back the debt, maybe even learning to live within our means and save for that rainy day. The bad news, consumer spending accounts for nearly 70% of economic activity. It might mean a slow recovery. Fewer weeds sure, but no flowers blooming for a while.

Get started whacking with these articles on credit card debt relief.

What looms for the baby boomers?

inchargedebtsolutions — Sun, 30 Aug 2009 17:50:15 +0000

Today’s Washington Post business section carries a revealing piece by Nancy Trejos called “Seniors Leaning on Credit” (free registration required, I think) with great reporting and real insights into the issues of aging and debt. Of course, I’m pleased because InCharge Debt Solutions and nonprofit credit counseling get good mentions. The physical paper’s accompanying graphic is equally compelling, with a line drawing of an oldster (is that word OK?) leaning on a walker and the front of the walker is a giant credit card. Fixed-income investments are down for many, home values are diving under water around the country and many people are saying out loud that real estate may no longer be “an investment” for us, but more like art, buy because you like it, not for appreciation. If you are a baby boomer today, this story is a head’s up to make sure you don’t entire retirement deep in debt. If you are already in too far (in retirement and debt) there are options.

The 8th Wonder of the World: Compound Interest

inchargedebtsolutions — Wed, 26 Aug 2009 00:00:27 +0000

Wow, I’ve been falling down on the job and haven’t given you any financial food for thought. Here’s a morsel that could become a meal — for life. Details.com has another good piece for the young among you that details illustrates the power of saving early in life and compound interest. A 22-year-old saving $3000/year for only ten years will will have more money than a 32-year-old doing the same until age 65. Read that again and do the math, 10 years vs. 33 years. $30,000 vs. $99,000 saved, but the 22-year-old wins. You can’t turn back the clock on age (heaven knows I’m trying), but you can start saving today.

And don’t forget, compound interest is a two-edged sword. If you are paying only minimum balances on credit cards you are pushing a very heavy rock up a hill. Maybe it is time to either get more aggressive with your payments (if you can) or seek credit counseling help.

Frugalstan vs. Richistan

inchargedebtsolutions — Mon, 27 Jul 2009 16:21:08 +0000

A couple years back Robert Frank of The Wall Street Journal penned “Richistan: A Journey Through the American Wealth Boom and the Lives of the New Rich.” Other characterizations followed and we’ve added phrases such as Bobo (bourgeois bohemians) and poorgeoisie. Now black, platinum and preferred credit card ostentation is flying low if not off the map. “Frugal is very in,” according to behavioral psychologist Matt Wallaert of Gen Y budgeting site justthrive.com. Doubtful we’ll be saving tin foil or making hash (not what you’re thinking) out of leftovers like my depression-era mother, but maybe a bad economy will help us to think twice about what is important in life and whether we want to live in Frugalstan or Richistan.

Debt loss vs. weight loss scams

inchargedebtsolutions — Tue, 21 Jul 2009 14:23:09 +0000

Sandra Block of USA Today has a clear, highly informative and, I think, unbiased article comparing the scams we hear about in the world of debt reduction vs. weight reduction. Perfect. Aren’t these both the areas we want to “shed” or “trim” the most — and do it as quickly and effortlessly as possible? Not possible for either, in any lasting way. We are talking lifestyle & behavior change, a bit of discipline for both. I don’t think there are any legitimate quick weight- or debt-loss systems, machines or potions. It’s about trimming calories or trimming dollars/interest rates. For debt try InCharge Debt Solutions’ “Debt Rolldown Calculator.” For calories iGoogle even has a free calorie counter (but you have to be an iGoogle home page user) or check out MyFoodDiary.com. Not free, but has earned a lot of kudos.

Now, back to the weight scale.

Obama pushing debt settlement? Ah, no.

inchargedebtsolutions — Mon, 13 Jul 2009 07:00:53 +0000

True story. I’m watching ESPN2 at lunch with “the fam” Saturday in our favorite wings place in Orlando (Hurricane). Suddenly I notice a press conference with Obama and a screen scroll about a new (government) plan helping people with more than $10,000 in debt and relief of up to 40%. I jump out of my seat to see what is going on. There is, of course, a toll-free number where you can get additional information. I couldn’t even hear all that was being said, but the words on the screen and the whole scene was enough to convince me a major debt settlement initiative was being announced by Obama. NOT. This is, unfortunately, a pretty clever tactic to get people in need to call thinking they are calling a government agency. One thing gives it away, the $10,000 threshold. You will never see that qualifier in a TV spot or any ad for a nonprofit credit counseling organization. Nonprofit status hinges on serving and educating all consumers about all kinds of debt; how to get out from under a bad situation and how to stay out, in a way that takes budgeting and some discipline. It is not an easy path, but whether you walk in, call in or visit a web site to start a free credit counseling session, no one will stop talking to you (or helping you) if you have less than $10,000 in debt.

As you will read in other posts here, President Obama is extremely unlikely to be holding a press conference promoting debt settlement any time soon.

Can we live without money?

inchargedebtsolutions — Sat, 11 Jul 2009 06:00:22 +0000

OK, maybe this is way, way out there for most of us, but Daniel Suelo lives in a cave outside Moab, Utah, and has since 2000 without a cent to his name. Granted he is dumpster diving and living on the good graces (a word he interprets in interesting ways) of friends and family, but his anti-consumption lifestyle might just have some lessons for us all. “When I lived with money I was always lacking. Money represents lack. Money represents things in the past (debt) and things in the future (credit), but money never represents what is present.” From Daniel Suelo’s blog, zerocurrency (that he writes from the computers in the local library in Moab).

Debt settlement firms roosting on K Street

inchargedebtsolutions — Fri, 10 Jul 2009 19:04:18 +0000

Thanks to TheHill.com for this scoop on debt settlement firms hiring K Street lobbyists in Washington, DC. If you don’t know DC, K Street is THE street in the North West section, not far from the White House, where many old, large and expensive law firms and lobbyists ply their trade. Patton Boggs has more than 600 lawyers and non-lawyer specialists according to their web site. In short, big guns.

Credit card debt — the way forward?

inchargedebtsolutions — Mon, 06 Jul 2009 14:23:55 +0000

Not enough consumers are aware that creditors are actually working with consumers with too much credit card debt to find a more affordable payment, while still sticking to guidelines of 5 years or less for repayment.

You do the math. If creditors want a consumer to repay unsecured debt in 60 months or less, and they would strongly prefer NOT to write off a loss of principal (the original debt) that means they want to offer concessions of lower interest rates, eliminating late fees, etc. Here’s a good piece on this so-called “Call to Action” for hardship debt repayment plans.

For more background see InCharge Debt Solutions’ press release “Creditors work with credit counseling firms to help consumers“.

Credit counseling vs. debt settlement

inchargedebtsolutions — Thu, 02 Jul 2009 16:46:48 +0000

As I said in my welcome, it is a “debt solutions jungle out there.” As this helpful piece from the Associated Press (via the Buffalo News) attests, debt settlement is part of that jungle.

For consumers the real problem is the “noise on the line.” What’s free, what’s a come-on or outright fraud, what can I do on my own vs. needing help, are their alternatives to bankruptcy, how do various solutions impact my credit score, etc., etc., etc.

Nonprofit credit counseling hasn’t been immune from problems and it is not a cure all, but look here for a glimpse of how a free credit counseling session works.