[gman26]

Anyone ever heard of John Kamuda and his debt elimination program? Just another gimmick, I presume.

[md1twal3]

They are all sort of a gimmick. I had an ex one time that went through one of those programs, and my name was on one of her credit cards. This particular "vendor" advised her to go into delinquency on her credit cards by not paying. Then, once it goes to the company's collections group, the "vendor" crafted a letter stating that they would only be paying $xxx per month toward the balance and that the card company was to quit applying interest to the account. Included was a check for the first payment and in the fine print of the letter, the "vendor" basically said "by cashing this check, you are agreeing to the terms set forth in this letter. It would have worked, but her credit (AND MINE) was taking a beating.

I called the card company, explained what my ex was doing and they advised me that there are more effective ways of addressing the balance. Essentially, you can call them and negotiate a payoff, often times for 45% of the balance. It does show on your credit report as "paid as agreed", which has a slight impact on your credit, but nothing like going into delenquency.

Anyway, that is the just of how it worked for her. I called her, explained this option and I think she ended up doing it. thankfully, while that was happening, the debt was sold to another company and somehow, my name was dropped from the account, so it disappeared from my credit history.

[Old Blue 66]

Personally, I think the " Negotiate your settlement and pay up to 45% of the debt owed" is a bunch of crap. Ive delt with the credit card companies on a few different levels, and I couldnt get them to budge much other than reduce some late fees. And I negotiate for a living!!

Until recently, its been way too easy to get cash through credit cards and such. Now all of the sudden when all of the "Money" markets (mortgages, credit cards ect) are hurting, new companies are coming out of the woodwork saying that you dont have to pay for it or you dont have to pay for most of it.

The fact of the mater is that you owe the money and your responsible for paying it back. If your falling behind get a second job, cut back on your spending and pay it back.

One exception to this rule is this: If you are behind or having trouble, work with the credit card companies and let them know whats going on each step of the way. They DO respond to constant comunication and will work with you. In some cases, if they are willing to work out a pay plan (while your behind) they'll even be kind enough NOT to report any bad marks to the credit beuru.

[eric65]

Try Dave Ramsey .. Has national radio show and tons of books .. We went thru his course this summer and has helped us to no end. No gimmicks either If you dont want to buy his stuff dont, you can check it out from the Library no cost...

http://www.daveramsey.com/

Good Luck

[Jerry H.]

Originally Posted by gman26

Anyone ever heard of John Kamuda and his debt elimination program? Just another gimmick, I presume.

Unless he has changed his program over the years (and I think you spelled his name wrong, I think it begins with a 'C') it has nothing to do with negiotating down your CC balances. It is simple common sense. Essential you 1. Cut up all your credit cards where you can't use them anymore. 2. Live as tight (use coupons, don't go to movies, go by your strict budget,etc) as you can where you can pay a large amount on one credit card every month until you get it paid off, then pay that amount plus what you were paying on the next highest balance card you have until you get it paid off and then so on and so on. If you can stay on the plan, it will work. When you get all your cards paid off, you take all that accumulated money you were paying on the cc per month and add it to your car payment, and when it is paid, add that TOTAL amount to your mortgage. If you are paid weekly, he also advises making weekly payments on your mortgage and /or car payments, that way you pay 1 extra payment per year. It is common sense and not worth paying very much for.

[gregneun]

Life takes Visa,

These commercials make me sick. They should say, want to live outside your means and build up debt at an unpayable rate? I'm not saying that these company's encourge you to overspend but ...

Want to pay more for something, use a credit card.

Shop around and find the lowest price for the item you wish to purchase. Then plop down the plastic and pay 24% more.

Send in the minimum payment for about 6 months and check the balance. This is what they want you to do. Actually they don't want you to check the balance, just keep sending the minimum payment, for life. After your death and the probate process, they'll get theirs before your heirs.

Not only that, but the vendor is charged a 2% fee (or so) for the priviledge of selling something to a credit card buyer.

Credit card cash payment is a double bonus for Credit Card issuers. They get the fee charged to the seller/vendor and get payment right away. In this instance, you pay real dollars for the item, but the seller/vendor still gets hit with the convenience charge from the Credit Card Co.

I know that the sale paper read only $12/mo on the *ears card, but how much did you actually pay for that socket set? You'd be surprised. I forget, you got 5 bucks off the socket set if you used your *ears card.

What do you guys think about cutting off the labels on the oil cans, (dated) filling out a form, sending them in and getting a check for $1.25. Considering the postage costs, you're still ahead about a quarter.

Rebates make about as much sense as credit card buys. That's why they are in business and you are cutting the oily bar codes, filling out the forms, (usually wrong)that you bought with the credit card.

Greg

[gregneun]

They are in every grocery store here.

Want to lose 10% of your saved money immediately, use one of the convient coin counting machines at the local market.

The cash advance stores (?) offer services at an interest rate that Loan sharks envy.

Use the cash advance and the Coin machine money to make the minimum payment amounts on the Credit Card balances.

[Stuckinda60s]

My wife and I have lived with credit cards for a long time. We don't buy anything with a cc which we couldn't pay cash for. We then pay them off every month. We also use cards which give us money back and make the majority of purchases with them. Over the years we've saved a lot of money this way and even made some to boot. The money back mounts up, I recently cashed in $440 from Discover.

I went into a lumber yard the day after the insulation was installed in my new garage. The bill was $2800. As I was writing the check I asked the owner if he'd give me a discount for cash. He, somewhat sneeringly, said, "no". I tore the check up and pulled out my Discover, "Here, put it on this!" I got money back and he had to pay his percentage to Discover. He hadn't had to send me a bill at the end of the month and then wait for another 30-days for payment, he could easily have given me a break.

Rich

[455Grandville]

Originally Posted by gman26

Anyone ever heard of John Kamuda and his debt elimination program? Just another gimmick, I presume.

My wife runs a home based business that helps people who are being harassed by bill collectors.
I can tell you a few things - first off, there is no magic wand you can wave to repair bad credit.
Old Blues comment about communication is very correct. Do communicate with them.
If you are being harassed by phone or work you should send a cease and desist letter simply asking no calls at work or at home and send it CERTIFIED. That way you wont get in hot water at work.
Also, if you are being called by collection agencies those people get paid on comission/bonus: Tax return time is big pay for them - they will bargain on an old bill they consider a dead horse.
And there is no law that states they have to take $10/month payments. If a collection agency is breaking the law look up the FAIR DEBT COLLECTION ACT, few people know about it.

[67drake]

Originally Posted by gregneun

Life takes Visa,

These commercials make me sick.

Greg

I agree! I first saw this commercial while watching TV with my kids,and I laughed.What,I'm in idiot just because I don't feel like going into debt?
No secrets to paying off debt here.I try to spend less then I earn.I try to teach my kids they don't need all the gadgets they see ,or thier friends have."So you want a cell phone? Get a job!"
If you are in debt already I'm sure that there is plenty of FREE information at the library,or online.

[455RM]

Originally Posted by 455Grandville

If a collection agency is breaking the law look up the FAIR DEBT COLLECTION ACT, few people know about it.

I had one that would call for my ex 20-30 times a DAY...I documented every call on my caller ID, sometimes they would call my phone before 8AM and after 9PM. I finally sent a complaint to the BBB and the Federal Trade Commission...After I had done that, I answered one of the calls and asked the man if he was familiar with the Fair Debt Collection Protection Act, to which he replied "are you a lawyer?" I reeled off every law he was breaking and he said they weren't breaking any laws, they can do whatever they please and that I was "full of sh*t." I promptly said "we'll see about that" and hung up on him.

Calls stopped about a week later and I received an apology in the mail that was an inch thick.

Only nice thing I had ever done for my ex...LOL!

[Hurst65]

Originally Posted by eric65

Try Dave Ramsey .. Has national radio show and tons of books .. We went thru his course this summer and has helped us to no end. No gimmicks either If you dont want to buy his stuff dont, you can check it out from the Library no cost...

http://www.daveramsey.com/

Good Luck

I love listening to Dave on the radio. He freaking tells it how it is weather you like it or not.
I have learned soo much listening to him.

[JimFB400HO]

Want to get out of debt? Eliminate: Cable/satellite TV, satellite radio, cell phones for everyone, lattés, smoking, beer wine and booze, lottery playing and casinos, OnStar, dining out frequently, optional phone services, extended service warrantees, leasing vehicles, hired lawn and other work you could do, buying and soon abandoning useless stuff, designer name and fads clothes, magazines and newspapers, all finance charges, memberships, and car washes (wash it yourself). Is all of that stuff really necessary?

[Old Blue 66]

Originally Posted by JimFB400HO

Want to get out of debt? Eliminate: Cable/satellite TV, satellite radio, cell phones for everyone, lattés, smoking, beer wine and booze, lottery playing and casinos, OnStar, dining out frequently, optional phone services, extended service warrantees, leasing vehicles, hired lawn and other work you could do, buying and soon abandoning useless stuff, designer name and fads clothes, magazines and newspapers, all finance charges, memberships, and car washes (wash it yourself). Is all of that stuff really necessary?

Desperate times call for desperate measures.....right on Jim!!

[JimFB400HO]

Originally Posted by Old Blue 66

Desperate times call for desperate measures.....right on Jim!!

Losing weight comes from eating less and exercise. There are no magic elixirs.
Financial security comes from spending less and working harder (and smarter). There are no magic elixirs.

It's not really that desperate when you really don't need any of that (and similar) stuff in the first place. Somehow the basic need of morning caffeine has become a $3-4 Starbucks everyday. A tablespoon of instant in a cup of hot water at home before leaving the house provides the same kick and saves a hundred bucks a year.

[Hurst65]

Originally Posted by JimFB400HO

Want to get out of debt? Eliminate: Cable/satellite TV, satellite radio, cell phones for everyone, lattés, smoking, beer wine and booze, lottery playing and casinos, OnStar, dining out frequently, optional phone services, extended service warrantees, leasing vehicles, hired lawn and other work you could do, buying and soon abandoning useless stuff, designer name and fads clothes, magazines and newspapers, all finance charges, memberships, and car washes (wash it yourself). Is all of that stuff really necessary?

Sounds like you've been listening to Dave Ramsey too.

[JimFB400HO]

Originally Posted by Hurst65

Sounds like you've been listening to Dave Ramsey too.

Have not heard Dave Ramsey but I would like to. Actually, those comments were simply a few of my own financial ideas.

[67drake]

Originally Posted by JimFB400HO

Want to get out of debt? Eliminate: Cable/satellite TV, satellite radio, cell phones for everyone, lattés, smoking, beer wine and booze, lottery playing and casinos, OnStar, dining out frequently, optional phone services, extended service warrantees, leasing vehicles, hired lawn and other work you could do, buying and soon abandoning useless stuff, designer name and fads clothes, magazines and newspapers, all finance charges, memberships, and car washes (wash it yourself). Is all of that stuff really necessary?

I agree! After my divorce a few years ago my ex was amazed that I could afford to stay in our house after buying her out of her half of the equity.I did ,and I'm still here.Amazing what you can do without.

[Mr-Bratt]

I have a full set of SCUBA gear want to use it ? and transfer funds to me?

[bradkline]

A couple of observations from some one who works for a bank and deals with folks with credit issues all the time. First, if you negotiate paying a credit card company less than the full balance, your credit report will indicate "settled for less than amount owed". Second, that action of adding a statement that "cashing this check represents payment in full" is an old chestnut the credit card companies and other lenders have seen numerous times over the years. If you read your fine print in the contracts you see you've agreed not to do that and if you do it's meaningless. Lastly, most lenders are willing to work with folks who have legitimately fallen on tough times. I see too many people who just want to enjoy what their debt has purchased for them and now don't want the pain of paying it all back. Keep in mind for all debt excused or otherwise not paid back gets absorbed directly or indirectly by all the rest of us who do meet our obligations. It's in higher rates and higher prices so there is no free ride just one on the backs of others.

B Kline