As most of you know I am Certified by the
National Foundation of Credit Counselors. (NFCC).
In the world of credit Counseling this is considered the
“IT” certification. Posted on their website

NFCC-Questions To Ask When Considering Debt Settlement is
information about debt settlement programs and a list of questions
to ask a debt settlement company before enrolling.
Here is a list of the questions, and following
each question is their question and my comment. I think you will
find it very helpful, especially if you or someone you know
is considering debt settlement to become debt free and
avoid bankruptcy.

· Review the company’s record with the Better Business Bureau
as well as there state Attorney General or Commissioner of Banking.

My Comment: Do not be hung up if the company is not a BBB
member. The BBB logs complaints against all companies,
whether or not they are members. You can also try a google search
like “Complaints against XYZ company”. If you see complaints,
ask the counselor directly about them.

· Select a company that is affiliated with an
industry trade association which holds members accountable
through accreditation.

My Comment:Many Credit Counselors work as small
companies. Affiliation is good, however, realize that,
for example, a membership can be expensive, TASC, which is
the Association of Debt Settlement Companies, costs
250.00 dollars per month. A company can follow TASC
guidelines, without being a member.

· Confirm that the account holding your deposits
is FDIC-insured.

My Comment:This is a good question, but an additional
question might be if funds are held in an attorney escrow account
is that account protected?

Obtain all disclosures in writing, including a
good faith estimate of costs associated with the settlement.

My Comment: This is absolutely essential. You need to
be provided in the agreement itself, a breakdown of exactly
how much money is going to escrow for settlements and how much
for fees. What is the dollar breakdown not just an overall
pecentage.

· Inquire about refunds of any money on deposit should
you wish to drop out of the program.

My Comment: Generally, many good companies will
breakdown how the fees are earned and the pro rated return policy.
All funds held in an escrow account mist be returnable to
the client-since it is your money set aside for settlements,
period. Also, a good settlement company or settlement lawyer
will apply you fees to a bankruptcy proceeding should things
change and you find yourself having to file a bankruptcy after
the program has been underway.

· Be cautious about promises or guarantees that seem
unrealistic.

My Comment: Make sure what you are told is
stated in plain language in the agreement. Very simple.
Most settlement companies will not represent you if you
are sued by a creditor before the account is settled. Make
sure you know how that issue will be handled should it occur.
This is a very important point Do not gloss over it.
You should not have to ask many of these questions, a good
program will give you the answers before you ask.

Have more questions? We have answers. We also
have an extraordinary debt settlement/debt validation program
which may well be the best ever. If you would like to
know more, simply visit:
DEBT SETTLEMENT WITH VALIDATION.
While you are their please feel free to subscribe to
our FREE, Credit Counseling Newsletter.

Written By:
Steven Ciantro
Member National Association of Certified Credit Counselors
American Debt Enders
Help@americandebtenders.com
877-766-2465

Indeed we are living in strange economic times.
We have consumers who were already burdened with high
debt, losing jobs or suffering cutbacks to income, just
trying to survive. And, on the other side, we have the
banks and collection companies working overtime to try
to squeeze that last penny out of you. If they could
legally send Vito to turn you upside down and shake you
until the money falls out, I’m sure they would

So, in the interest of keeping you, my loyal
readers educated and self empowered, I am going to
share with you a new tactic, which is highly illegal,
being used by 3rd party debt buyers and collection agents.

Here it is. Your in your home minding your own
business,when the phone rings. At the other end
is someone who sounds very nice and sounds quite surprised
to learn that you are home. I mean give me a break, she
just called your house. She then tells you that she is a
“dispatcher” and they just had someone at your front door,
trying to serve you papers. He left the property and did
not serve the papers because no one answered. OK–now
please pay careful attention. No one came to your house.

Now, with academy award acting skills, she asks if
you know who could possibly want to serve you papers? She
tells you that you sound like a nice person and she will
hold the papers, and not serve them, if you call this
number, which she then provides, and tells you to ask
them what the problem is, because maybe it’s a mistake.
She even gives you the case number!
Lets pause to breathe here. So far this whole thing
is totally absurd. Process servers get paid to serve
papers. If no one is home, they simply tape it to your front
door.

So, can you tell me what comes next? No problem,
I’ll tell you. You call the number and it is, of course,
a debt collectors office. You give the case number, and
the person on the other end, is also very nice. She says,
boy, they must have served everyone in your state today,
because her phone is just ringing off the hook. OK, now
remember, you did not actually get served. She then tells
you that she works for this Third Party debt buyer, and
they have your debt of whatever the amount. My source had
a debt of about 3,000 dollars, which they said really was only
1200.00 but they tact on legal fees. She wants to help
you and can offer you a deal of 1200.00 in 3 payments,
and mark the account paid in full. Note: They most
likely purchased the debt for 100.00 dollars!.

What they are trying to do, is weed out those
people they think they have a chance to collect on
through a judgment, if they spend the time and money to
take you to court. If you are approached in this manner,
whether or not you settle is your business, but, what they
are doing is highly Illegal under the Fair Debt Collection
Practices Act. A creditor cannot threaten to sue you, and
not do it. In this case they lied to you, and said they tried
to serve a subpoena, but did not, it is grounds to sue them!
So if this happens to you, play along, and document everything.
If they do sue you, you can counter sue them and you do not
need a lawyer to do it. The clerk of the nearest court house
will be happy to give you the paperwork. You can also, use as
leverage, the fact that you know what they are doing is illegal,
and you are going to forward their phone number with a nice
little story to your states Attorney Generals office, then ask,
if they are willing to settle for 100.00.

I hope you have found this information useful.
If you need debt help please do not hesitate to call us
at: 866-766-2465, or visit us at:
American Debt Enders.
If you enjoyed this article, by all means, feel free to
subscribe to our FREE Newsletter at:
FREE NEWSLETTER.

Written By:
Steven Ciantro
Member National Association of Certified Credit Counselors
American Debt Enders
help@americandebtenders.com
877-766-2465

OK, so most people are familiar with the standard
debt settlement program. But, are you familiar with a settlement
program that demands debt validation, and strict compliance with
the Fair Debt Collection Practices Act, and other powerful
consumer laws, to put the collectors on their heels, before
talking settlement?

How about a program that’s not really a program, but rather
the hiring of attorneys who are very familiar with comsumer
credit law and, if you are sued while working out the debt, will
actually represent you.

What about those extremely annoying creditor phone calls
while you are trying to put money together for a settlement?
Most settlement companies, say simply, do not speak with your
creditors, and that is fine, but it does not stop the calls.
Did you know that when a debt validation is requested, that
the creditor cannot call you unless and until they are able
to meet the legal requirements of validating the debt–or proving
absolutely that you owe what they say you owe.

Did you know that legally, if a creditor cannot validate
a debt, that you do not owe the money?

How about this one: Did you know that a creditor
cannot put negatives on your credit report after you have
requested a debt validation, and until and unless they
actually validate it?

As you can see you have plenty of rights when you are
in a debt crises. Please do not misunderstand what I am saying.
I am not suggesting that you stop paying your bills and start
playing games. I am saying that if you cannot pay your unsecured
debt payments, and the banks will not be reasonable with you,
then their is another way.

Want to learn more? Please call us at 877-766-2465,
or visit us at:American Debt Enders
and leave your contact information. This program is
absolutely affordable and works because of its quality.

If you would like to subscribe to this newsletter,
feel free to visit: FREE CREDIT COUNSELING NEWSLETTER
and leave your email address. We never share your information.

Written By:
Steven Ciantro
Member National Association of Certified Credit Counselors
American Debt Enders
help@americandebtenders.com
877-766-2465

In the interest of passing along any information
that my readers will find helpful. Here’s a piece of news
regarding the cash for clunkers program.

If you are in the market for a new car,
then you need to start looking for ads by dealers who
will start advertising this program. Basically, you may
be able to qualify for a voucher valued at either 3500.
or 4500 dollars to be used as a down
payment on a new car. The qualifiers are listed in
the following article:CASH FOR CLUNKERS.

Please feel free to share this article since this
program will only be good until November of 2009.

As always, if you would like to subscribe to our
FREE credit counseling newsletter, simply visit:
AMERICAN DEBT ENDERS.

If you need debt relief help, remember, we offer 3 programs,
and none of them include bankruptcy. They are debt settlement,
debt management and “alternative debt relief.

Written By:
Steven Ciantro
Member National Association of Certified Credit Counselors
American Debt Enders
help@americandebtenders.com
877-766-2465

The following, regarding the differences between
Credit Counseling and Debt Settlement as debt solutions, is taken
from an article appearing on the TASC website. The full
article can be read by visiting:
Tasc Article. For those of you who are not aware, TASC, The
Association of Settlement Companies,is a non-profit organization
devoted to maintaining high standards in the settlement industry,
and highly thought of.

So, lets get beyond all the hype and really take a look
at which program has better outcomes. From the article:
TASC, the non-profit watchdog organization for self-regulating
the debt-settlement industry, gathered the information from various
sources, including the Consumer Federation of America and National
Consumer Law Center, the Executive Office for the U.S. Trustees and
testimony by credit counseling companies. Indeed, all credible sources.

As I have often pointed out, the main difference in the two
approaches is that debt settlement companies work only for the consumer,
while non-profit credit counseling works in the interest of
the banks and credit card companies. As such they are usually only
able to obtain lower interest rates, as pre-established by the banks.

Additionally, settlement companies do not receive any fees
from the credit card companies or banks, they are solely paid by
the consumer. Where as non-profits are supported almost totally
by the banks they serve, by being paid what is called “fair share”
or a percentage of all the money that flows through them.

Debt settlement programs are typically 36 months or less,
while credit counseling programs are 60 months or more.

One of the big drawbacks of credit counseling programs
is that the monthly payments are fixed and many times, even
a bit higher than what the consumer was paying on their own.
Debt Settlement, however, affords the ability of a customized
repayment plan, to fit the consumers budget.

Because of the lower payment option, and shorter duration,
settlement often has a higher probability of program completion
than credit counseling.

So, which program is a utopia? Neither. Getting out of
debt is never easy. However, the key is if you are going to do
a structured program at least understand the real ins and outs
of each, so your decision is not based on what the propagandists
are saying.

If you would like to speak with someone who is
knowledgeable and can present both options to you, and make
full disclosure about each, then please visit:
American Debt Enders.
and while you are at the site feel free to subscribe to our
Free Credit Counseling Newsletter.

Written By:
Steven Ciantro
Member National Association of Certified Credit Counselors
American Debt Enders
help@americandebtenders.com
877-766-2465

Hello Again to all my faithful readers who
understand the merits of living a debt free life.

I came upon an extremely interesting article
on Examiner.com. It is rare for a financial writer to really
understand the ins and outs of how the banks really operate
to keep you enslaved. But, the article I found by Jerry Troyer,
gets it. After doing his homework, he discovered first hand that
the relief offered by the banks when a consumer calls directly
with a hardship, are woefully inadequate to allow the consumer
to meet their payment obligations.

Additionally, he discovered that many banks, when
contacted by distressed consumers who cannot afford anything
the banks offer them, in terms of relief, transfer the call
directly to a CCCS! That’s “Consumer Credit Counseling Service”.

Mr. Troyer says he has finally come to realize that the non-
profit agencies are agents of the banks. Hallelujah!! How totally
refreshing to see a financial writer get it.

The article goes on to say that that he has come to learn
that the banks pay the non profits for every dime they collect.
This is absolutely true and has always been true.

Here is the full article: Examiner Article. It is well worth reading.

If you need debt relief, and want to know all your
options, by counseling with people who really get it,whether
debt management, debt settlement or an
alternative debt relief program that really works
then visit: American Debt Enders.

While visiting our website please feel free to subscribe
to this newsletter by simply leaving your email address.

Written By:
Steven Ciantro
Member National Association of Certified Credit Counselors
American Debt Enders
help@americandebtenders.com
877-766-2465

I have long known that over 70% of credit reports
contain significant errors. Here is an article that presents
the study and its findings proving me to have been correct.
U.S.PIRG.

Please allow me to summarize the findings.
The big three credit reporting agencies, collect and
report information on 90% of all american adults.
They are Equifax, Experian and Trans Union. Those files
are often sold to landlords, lenders, employers, credit grantors
and collectors often without your permission.

Their have been several studies which prove
that their is a high error rate in the data contained
in your credit report. Enough errors to cause you
to be declined for credit, a job, or a loan, or pay
a higher rate than you ordinarily would have.

The study cited in this article asked adults in
30 states to complete a survey on their reports accuracy.

Here are the survey results as reported in the article:

- Twenty-five percent (25%) of the credit reports surveyed
contained serious errors that could result in the denial of credit,
such as false delinquencies or accounts that did not belong to the
consumer;

- Fifty-four percent (54%) of the credit reports contained
personal demographic information that was misspelled, long-outdated,
belonged to a stranger, or was otherwise incorrect;

- Twenty-two percent (22%) of the credit reports listed
the same mortgage or loan twice;

- Almost eight percent (8%) of the credit reports were
missing major credit, loan, mortgage, or other consumer accounts
that demonstrate the creditworthiness of the consumer;

- Thirty percent (30%) of the credit reports contained credit
accounts that had been closed by the consumer but remained listed
as open;

- Altogether, 79% of the credit reports surveyed contained
either serious errors or other mistakes of some kind.

OK, so the next time someone tells you that
credit restoration companies are a scamsend them
a copy of this article, and tell them to think again.

Their is always so much negative misleading
propaganda put out in the general media about credit
counseling, especially for profits and credit restoration
companies that it is high time someone challenged them
to prove their claims. The fact is, unless a company
is just fraudulent from the get go, they cannot prove their
negative talk. It is the banks and non-profits who
are controlled by the banks, coupled with the credit
reporting, or should I say debt reporting companies
that have a sweet deal going enslaving consumers with
this brainwashing fixation on credit report scores
and borrowing.

If you find an error on your credit report
and need help or even free advice on how to remove it,
by all means contact us by visiting:
American Debt Enders.

Also, if you enjoyed this article and learned
something you did not already know, when you visit
our site, click on the link to subscribe to our FREE,
Credit Counseling Newsletter for more great
unbiased and accurate information to keep you
out of debt slavery.

Writteb By
Steven Ciantro
Member National Association of Certified Credit Counselors
American Debt Enders
help@americandebtenders.com
887-766-2465

Their has been a long standing perception that the FTC
has only a negative view of debt settlement companies. With
so much misperception and negative press, allow me to try to
put things into perspective. Commissioner Rosch of the FTC
has taken the following view:

a debt settlement firm can advocate on the consumer’s behalf,
especially in cases where consumers are reluctant, embarrassed, or
even afraid to contact their creditors directly,”
Commissioner Rosch said to the conference attendees.
“A debt settlement firm also may be able to provide individualized
attention to consumers, taking a holistic approach to all of the
consumer’s unsecured debt owed to several creditors, rather than
just the amount owed to a particular creditor.

“Managing the complete debt picture and focusing on restoring
the consumer’s financial health has always been a critical
value proposition of debt management professionals–nice to hear
it from the FTC.

In Addition, the commissioner gave the following “best
practices” issues to the industry:

“limit their performance claims to those they can adequately
Substantiate”; not “misrepresent the benefits of debt settlement”;
“disclose, clearly and conspicuously, the negative impact
that participation in a program may have on a consumer’s credit score,
and how long that impact may linger. This disclosure should not
be made only in the written contract, but in the ad itself”;
and
“if a debt settlement firm promises to refund debt settlement
service fees to consumers if their debt settlement negotiations
are unsuccessful, the firm must honor that promise.”

Additionally, the Commissioner indicated he was not impressed with
attempts at self regulation, by the industry as a whole.
The above items from an article at the following link:
Real Benefits on Debt Settlement Industry.

The National
Foundation For Credit Counseling estimates
a completion rate for Debt Management programs among its members
to be 21%, the rate for successful completion of a good debt settlement
program is often double that.

So why so much negative publicity about debt settlement?
First, in my opinion, when the sub-prime mortgage business ended,
many unscrupulous mortgage brokers found a new career, it was
debt settlement. They were not trained to be counselors,
only sales people, looking to close deals. Any deal would do.
The same way they approached mortgages, they approached
their new found careers in settlement. No full disclosure,
no truth in advertising, just get the deal done.

Second, their will forever be a battle between non-profit
Debt Management Companies, and Debt Settlement Companies,
and for profit companies. Non-profits are controlled by the banks,
and get paid a percentage of what their clients pay, by the banks.
Additionally, the banks control and dictate the terms they are
able to offer their clients. Debt Settlement directly competes
with them.

I do agree that to many debt settlement companies simply do
not do the right thing, which has tarnished the entire industry.
Consumers need to be very careful when choosing a settlement company,
or even any debt management company. Make sure you are being
counseled and not pushed, or sold, or pressured.

If you would like to speak with a counselor,
please visit:American Debt Enders.

If you enjoyed this article and would like to subscribe
to our FREE, Credit Counseling Newsletter, please do so by
leaving your email address at: CREDIT COUNSELING NEWSLETTER.

Written By:
Steven Ciantro
Member National Foundation of Certified Credit Counselors
American Debt Enders
help@americandebtenders.com
877-766-2465

FICO, formerly known as Fair Isaacs Company,
the same people who create your credit score, has started
an awesome website for anyone needing help with a
mortgage problem. The website is Mortgage Lifeline. At the site troubled consumers
can get free assessments for their own unique situation.
They can actually chat with an approved credit counseling
agency with approved housing counseling and have a meaningful
dialogue with their lenders.

The average consumer/homeowner in trouble with their home
loan, can now determine what new government help may be available,
without having to limit their options by paying a large fee to a loan
modification company. Consumer complaints are too numerous to ignore.
Borrowers say their lenders and the companies that administer
their loans, known as “servicers,” are difficult to reach and,
when they are lucky enough to make a connection, are unresponsive
to their needs. Some say they are not receiving any response at all.

This resource site allows consumers to get help with their
overall financial picture, not just the mortgage problem. To date,
to many consumers have found help, only to have the problem re-occur.
At this site, homeowners actually fill out a form and can get
an instant response on what type of help they qualify for. In
essence, a pre qualification. Within 48 hours of filling
out the form, a counselor from Money Management International
calls back for a free counseling session to assess if the
homeowner is eligible for Hope Now,
or Hope For Homeowners,
Their still may be other options available.

For free, personalized advice from counseling agencies
certified by HUD, call (888) 995-HOPE, a national,
round-the-clock hotline.

If you know someone who can benefit from this information,
please do forward this article to them.

As always, in writing these newsletters we strive
to bring you unbiased and relevant information to help
with debt issues. If you would like help with a debt issue unrelated
to your mortgage please visit us at:
American Debt Enders, we also offer free advice on debt solutions.

If you enjoyed this newsletter, please feel free to
subscribe by leaving your email information at our website,
or visit the blog at: FREE Credit Counseling.

Parts of this article have been excerpted from an article
appearing in the Los Angeles Times which can be accessed here:
LA Times Article.

Written By:
Steven Ciantro
Member National Association of Certified Credit Counselors
American Debt Enders
help@americandebtenders.com
877-766-2465

When people are burdened with a debt crises,
especially if the crisis has just happened, that holds
them back from getting organized help is their credit score.
What do I mean by this? Well, if someone is having great
difficulty meeting their monthly minimums on their unsecured
credit card debt, and is in fact in a pay for life program
where the debt will not be paid off for 30 years or sometimes
longer, the first question asked is “how will a debt management program
program effect my credit”.

Please do not misunderstand me, it is a reasonable
question and should be asked. The fact is that because accounts
in a debt management program are closed to further charging,
at the time the bank accepts the proposals for new payment terms,
the credit score does take a hit. How great a hit, depends on
many factors outside the scope of this article. But, because
of this fact, some people laden with debt will not proceed,
failing to get the point, or to understand that they have
been brainwashed into debt slavery.

Credit scores rise and fall. Does it make any sense to pay
back a debt at 30% interest over 30 years, so you can protect
your credit score for a few points? The fact is, as you get rid
of debt, you will start improving your credit profile, and not be
anyone’s debt slave. You will as a debt free person, be totally
self empowered in your financial life. Furthermore, your health
will improve, as will your mental outlook. These are very tangible
reasons to make the necessary sacrifice to your credit score.

This credit score issue is used by non-profits to tell
people to avoid debt settlement, even when debt settlement
is the most viable option. The fact is that unless a
consumer is in a true financial crises, they should not
be in a debt settlement program. So if the debt ridden
is already in a debt crises with a poor credit score, then,
they are able to see more clearly how a structured debt relief
program, whatever it is, can help. Then, the only way to go,
in terms of a credit score is up.

Written by:
Steven Ciantro
Member National Association of Certified Credit Counselors
American Debt Enders
help@americandebtenders.com
877-766-2465