The Ultimate Solution This
is a 5 step process. The process WILL
NOT work unless you follow all 5 steps with Dedication, Devotion, and Discipline... Here we go - Step
#1 : SETTLEMENT COMPANIES ·
Stay away from settlement companies
and settlement law firms, as well as Consumer Credit Counseling programs. ·
These companies and firms are all in
this for one thing... MONEY!!! ·
Our program is free, if you don't
donate. We only ask that you donate because we
do have to pay for this web site and some content. Most of this information comes
from various sources that are in business to answer the questions we
pass on to the consumer (you). So donate what you can, when you can. ·
This is so easy people, anyone can do it. We are going to tell you how these companies
do it, and we aren't charging you 20% of your overall debt savings or debt
amount like they all do. Go right ahead
check them all out. There isn't one of them that do this for you, not even one
of you, for free. Step #2 : CEASE AND
DESIST ·
All of these companies will tell you
stop paying and deal with these creditors.
We are going to tell you the same. ·
However, you will pay them, and you
will contact them at a later date, ONE AT A TIME. ·
Dispute the fees and the interest so
they stop or at least slow them down for the time being. ·
Normally, when the debt charges off,
the account will be sold and be pretty much frozen, minus the fees added by the
collection agencies. ·
USE A CEASE AND DESIST letter
and use it to your advantage. We have samples and will continue to
provide samples as we either write them or find them. We recommend
certified mail. Mailing does work but
Certified mail is your best option. ·
Send the first CEASE AND DESIST to each creditor
then mail one monthly to help drive your point home. Step
#3 is a multi step process: DETAILED ACCOUNT LIST ·
Make a detailed list of your creditor’s,
smallest to largest with full account numbers and include most current balances. ·
You will need to project some settlement
figures. The ideal figure is 40%, but,
figure it up with 60% next to it. Try to
land somewhere in that 40%-60% range. ·
Set up an Escrow account (savings
account) just for this, and use it only for fixing your debt. Then, when your
debt free, use this account build wealth. ·
This account information MUST NEVER
be given to anyone, not even your employer, for any reason at all. You will not
allow anyone to have this account info. We cannot say this enough. DO NOT SHARE
THIS ACCOUNT INFO EVER!!! ·
This account will be your life line
when you feel you have enough funds pick the next creditor on your list and
contact them for negotiations. ·
You will open another account with
the same Bank or FCU specifically for these transactions. When you have an
agreement, get it in writing (ALWAYS) and set up the transaction. ·
ALWAYS TRY to get the option of
an Overnight check sent to the agency, a lot of these places will allow you to
do this as a last resort. ·
Try to get to the last resort before you offer
your transaction account info. Step
#4 : SETTLING YOUR DEBT ·
Once you reach what you feel is a
fair dollar amount to settle your debt with each creditor, it's as easy as
buying a new car. ·
Pick one creditor and bargain with
them. You will get to the rest later. ·
Start at 30%. You would never pay the sticker price of that
car so make them an offer, but start at 30% of the balance. ·
Remember to be as nice as possible
and try not to sound spiteful. Just kill
them with kindness; it really throws off the Debt Collector. ·
Most likely they will not settle the
account at that 30% amount, but they will start negotiations @60% at that time. ·
Just keep making counter offers
until they settle it around 40%-50% of the actual amount. ·
AGAIN get it in writing, if they will not put it
in writing, you have the right to call the original creditor to verify the
account being at that agency. In most instances they will fax it or email a
letter to you, but will want to run it electronically. This is ok to do,
because if they try to process anything other than what you authorize, you have
the right to dispute any and all of the charges with your banking institution
to get your money back. This is one of
the biggest reasons for getting it in writing. Step
#5 : RELEASE LETTER ·
Make sure you are 100% released from
this account with another letter, also known as a Release letter. ·
Use the Release letter to update all
of your credit reports. The contact info
for these credit reporting agencies are in the Extra Info
Sources section of this site. ·
After you get one creditor done start, all over
again by moving on to the next debt. There
you have it. There are some tweaks each
person can do, and others may say this can be done differently, and yes, they
are right. There are other ways. This is
definitely the easiest we have found, and has worked for all of us. We
created this site because there wasn't anyone to help us through our woes, and we
felt it was time someone took a stand. You
may be also asking "Will I get a 1099 statement next year to
turn in on my taxes..." The answer is yes, most likely you will. And we say “what you do with it is up to you.”
The
forgiven amount left over after you settle the account can be looked at as
earnings because the old rule is "A penny saved is a penny earned".
So count on getting this 1099. YOU
WILL STILL COME OUT AHEAD
No matter which path you take, the ultimate solution to debt
is discovered by taking control of your life and your money. Just figuring
out where the money goes isn't enough, not by itself anyway. You must have
internal control over your emotions, thoughts, and actions. By doing this you
will gain the ultimate control that allows you to build the life of your
dreams, along with knowledge that will last a lifetime.
