Debt Cures: ‘They’ Don’t Want You to Know About by Kevin Trudeau
Statute of Limitations
· Scavenger of debt collectors
· Paying a debt that is too old is not by law required by you
o Check with the stat’s statute of limitations
If this is your case?
· Don’t do anything, don’t talk to anyone
· R debt then the statute of limitations can start up
o “not collectable, it’s not mine do not call again”
o Send a letter saying “please stop calling about the alleged debt stop calling about the alleged debt it’s not collectable and I have no recollection of it.”
· Never agree and NEVER claim that it is yours
o You are allowed to ask questions
Negotiations
Balance Sheet (snapshot)
· Financial statement at any moment in time
o State your liabilities and asses your financial health
o
§ Assets- liabilities= net worth
· Financial snapshot that shows your financial health
Income Sheet
· Covers a period of time
· Tracks cash flow what came in and what came out
· All sources of revenue and all expenses during a particular period of time.
· Show creditors your fanatical picture
Send Statements and a Letter
· Saying you cannot pay
o No net worth or negative net worth (financial statements)
· State the facts and nothing more
Cut Your Rate
Call the credit card/ Collections Company
· Ask the interest rate
o Lower it!
o Ask to speak to a supervisor
o Call everyday if need be
o Somebody will lower your rate
· Lower rate instantly lowers your payment
· Check periodically what is your rate
Negotiate for your balance
· check your purchases
· look at the interest rates and fees and so you are better to negotiate with credit card companies
· when paying off notes lows interests
· Use the statement “trying to avoid bankruptcy” this is effective because if you file for bankruptcy, they get nothing.
Know the Problem
· Start with Credit Report
o Find the cause of the problems
§ Credit card company does not look at you they only look at your credit report and credit score
o Get a copy
o Make sure it is accurate
· Too low of a credit score:
o Deny you
o Forced to accept credit cards with higher interest
Credit Reporting Agencies
· Experian, Tran union, Equifax
All standard personal info + all credit cards and additional info
· History of life of you and your money
Credit Score
· Higher score more likely you will pay your debt on time
Higher Points Wins
1. Personal information
2. Credit Information
3. Inquires
a. Hard inquires stay listed on the credit score
b. For one year it will negatively impact your credit score
c. Read through inquires to make sure everyone has the legal right to look at it for people who are looking at
90 % of all credit reports have something wrong with it.
· Order online or request over the phone. Annual request one free report for the year
Ftc.gov
Annualcreditreport.com
· Review all available information
o Check personal information contact that credit bureau exactly
· Contact the credit card directly
o If they cannot help contact the credit reporting agency
· Damaging items
o File a dispute if there is an error
§ Write a letter
· Initiate disputes online available personal statement
o 100 words or less
· To look at credit monitoring
o check credit reports more than once a year
Credit Score
800-300
· Upper 700 best interest and lowest fees best credit risk
· Each credit score will be different
· They use FICO software
5 Basic Elements
35% Payment History
30% Amounts your owe vs. Original Balances
15% Length of credit history
10% type of credit used
· mixture of accounts is good
10% new accounts/ inquiries
When determining your FICO sore there are 88 things that are negative and 6 things that are positive
Approval Process
· Check with one store (department store)
· Mortgage all three agencies, take your middle score/ lower score
Vantage Score
· New credit reporting system
· 501-990
· Everyone is still using the FICO score
Myfico.com- purchase your fico score
Credit Score Improvements
· Get credit reports and fix it
o Take the middle score first
o Check three or four times a year
· Collection activity
o Ask to delete if from your record if you pay
o Held of all collection agencies will do this
§ they may even for this even if you negotiate a lower pay if off
§ Call credit card companies. Request to increase credit limit
· intend to not use all of your available credit
o use only 30- 35% of your available credit on each card
o do not max out cards
o 30% or below
1. Pay on time
2. Pay more than the minimum payments
3. Do not skip a payment
4. Do not close old credit card accounts or open loan amount
5. Say low.
a. Do not max out account
b. 30-35%
6. Avoid inquiries
Collections must stop calling your once you request it. Follow up the request with a written letter.
Write a letter with a proposal case. This will state your net worth.
· Income statement and balance sheet
Fair Debt Collectors Act
· If they violate anything from this act you can see them.
· If you choose to sue make sure that they take the collections out of your credit score.
Creating Wealth
1. Balance sheet
2. Income Statement
3. Letter
Free Money Programs
Good Credit
Secured Credit Card
· Give bank a deport and borrow it back
· Use credit union that will turn into a regular card over time
o Make sure that they report this information to the credit bureau
· Credit Union ONLY
Use credit for things that will increase in value
Start your own cooperation (business)
Llc (limited Liability Corporation)
1. Business
a. Corporate credit history
b. New tax ID # does not use
i. Your personal credit score (SS#)
c. Corporate credit score
i. 80 excellent
2. Interest rates on business credit cards are lower than personal credit cards
3. Business bank account
a. Complete separate accounts
Free Money
Government Grant Programs for people in debt
Small business association offers loans
sba.gov
fsa.usda.gov
foundationcenter.org
fundnetservices.com
kn.pacbell.com
city and county all offer grants and low interest loans
dressforsucess.org
bottomlesscloset.org
rurdev.usda.gov
www.ed.gov – learn a language
www.ed.goc- doctorate overseas
www.aauw.org- grants in your field
Tax credits
Enterprise zone
