Get Out of Debt 101 Blog

Well, you probably read it on the news or seen it on tv. Identity Theft is simply when a person “steals” the identity of another person, usually to take advantage of them. The most common way is by using their social security number or credit card number to either purchase things or apply for a loan and so on.

With the use of computers so widespread, (and our information is in so many computers right now: Banks computers, our employers’ computers, on backup computers, government computers, etc) it is becoming easier for people to find victims: look at your inbox and see how many lotteries you have “won” in Nigeria, or how many “lawyers” have emailed you to inform you of an inheritance that a long lost relative in Africa left for you. And they all want the same: either the details of your checking account (along with your PIN) or for you to wire money to cover the expenses/taxes/fees/etc so that you can receive your “millions”

Please don’t fall for it. Be very careful when you get those emails. No legitimate company will ever ask you for confidential information via email. Never, EVER, give details of your financial accounts to anybody unless you are applying for a loan. Just use common sense! And remember to get out of debt and STAY out of debt.

See you tomorrow!

Yesterday I was talking about scams… what a coincidence. A friend just called me and said that he needed to get a loan for his business and the banks where he had applied rejected his application. So he went with a company in Los Angeles that told him it would be an easy approval, he had good credit, blah blah blah. But he needed to send them $620 so they could start the process.

Three months later, there is no loan and no money back (at least just yet). He cancelled the process over a month ago but the company is not sending the money back because there is always a missing signature or a piece of paper that is not completely filled out or something else. Always an excuse. He went to LA today to talk to them and he had to wait a long time (almost two hours!) until he could actually talk to somebody about his situation. They said the reason he didn’t get the money was because he didn’t fill out “this” piece of paper, so next week he would get it.

I love my friend, but I highly doubt he will get his money back. I hope he does, and I told him he should talk to the Better Business Bureau and the Attorney General. He should have done his research before doing business with them (at the bare minimum, a google search to see if other people were complaining about them).

Anyway, the moral of the story is the same as with all the scams you get via email: never, EVER, send money to a company you know NOTHING about and that it promises you something that is too good to be true. Especially, don’t send money before they give you the loan.

See you tomorrow, and be careful with those weird offers. If you didn’t play the lottery in Nigeria lately, don’t send via email your checking account information along with your PIN number…

Remember to stay out of debt!

It’s unbeliavable: my inbox is full of emails claiming I won the lottery in Nigeria. They are eager to send me the money, they just need all the details of my checking account so they can wire it. How convenient!

Have you ever fallen for a scam? You have to be very careful these days, scammers are getting more and more sophisticated. I was reading an article on msnbc.com about the latest one: they mail you a check that is so realistic, that even the cashiers think is real. Read the story and make sure you pass it along.

Never, ever wire money for any reason unless you initiate the transaction and you know who you are dealing with. When I wanted to sell my iPhone, I placed an ad on craigslist and I kid you not, got no less than 5 emails of people who wanted the details of my checking account so they could “wire” me the money (they just wanted to empty the account).

So be careful, and please pass along this information to your loved ones.
See you tomorrow!

Let me tell you: you have no excuse. If you are serious about improving your financial situation, you need to read your credit report at least once a year.

Especially now that you can get it for free. Go to FreeCreditReport.com to get your copy (you will be asked for a credit card, they will try to sell you – be aware).

If you have recently applied for credit but have been denied, you can get a free copy of your report from the credit bureau that denied you credit. Just read the letter you received with the bad news, it will tell you who to contact. Take advantage of it!

If you just want your credit score, you can go to CreditKarma.com (mentioned before in this blog). It is not 100% accurate, but it’s close to the real score. It is advertiser-supported (no credit card needed).

See you tomorrow!

I was reading this New York Times article and I thought, “I was so naive to think that Credit Card companies wouldn’t fight back”. It’s obvious now that they will be very creative coming up with new fees. They are even doing a deep study on our psychology: based on the items and brands we purchase, they can foretell (to a certain extent) whether we are likely or unlikely to miss a payment. Very interesting article, worth reading.

What do you think? Feel free to leave a comment!

Now that both the Senate and the House passed the bill, it is being sent to President Obama, who already said was going to approve it.

What will this law mean for us? Tens of millions of credit card users will have more time to pay their credit card bills and will also avoid retroactive interest rate increases on existing card balances, to start. They will be given greater advance notice of changes in credit card terms and less penalty fees, late charges and interest payments.

Note: The flip side of this last item is most likely the comeback of the yearly fees, since the credit card companies are already losing millions of dollars in easy money. You see, penalty fees, late charges and interest were all free money, since they didn’t have to do anything to earn it. It was theirs for the taking since they wrote their own rules. So now they have to find other ways to make their “easy” money, so be on the lookout.

Once in effect, the law will also fundamentally change the way credit card issuers market, bill and advertise credit cards. And no doubt the users will win, since they will be more protected than before. I am very happy to see this law go into effect.

Universal default is going away (finally!), those unanounced interest rate hikes will be a thing of the past (about time), we will have more time to pay our bills, the highest interest rate balances will be paid first… and the list goes on and on. As I’m typing this, I can’t help but ask myself… there were SO many things that needed to be corrected (and this bill DOES NOT fix everything that is wrong, it’s only one step in the right direction) that I feel like NOBODY protected us in the last few years. The Banks literally, wrote their own rules.

But let’s not focus on the past, it’s already gone. Let’s focus on the present and the future. Let’s start getting rid of all the credit card debt we have, as soon as possible. The best way toget rid of credit card debt is with the Get Out of Debt 101 Master Manual. Go check it out now. For about the cost of two pizzas you can start your journey towards a debt-free life. And how valuable is that?

See you tomorrow!

I know, I know, this is not related to finances in any way. But it’s fine to take a break every so often.

Some time ago I posted a video of a magician called Cyrill. This guy is unbelievable! Watch this short video, you will not believe your eyes!

Make sure you forward this page to all your friends, I am sure they will love it too!

How does he do it?

We mentioned a few days ago (and you probably already read on the news) that President Obama has asked Congress to submit to him by Memorial Day a bill that will redefine credit card lending practices.
But what can we expect from this upcoming credit card reform?

According to industry experts, there are a few things that will most likely be included in the final bill.

Also, they could put a cap on penalty periods. Let’s say you are late on a card, the interest rate is raised for as long as the credit card company wants. From now on, it would be for only six months as long as you are not late again. Your interest rate should go back to where it was before.
It would also regulate student borrowing, protecting those under 21 years old who will now have to prove they have an income or have a co-signer.

We will find out more in the next few days. I hope the changes they introduce help those who are deep in debt and now need a helping hand

I apologize since I haven’t written in about a week. Our beloved IRS service decided to audit me and I’ve been busy gathering all the required paperwork. Which is fine, it’s their job after all.

I have some really good ideas for our blog that will help you a lot. Make sure you check back with us tomorrow. In the meantime, check out our Get Out of Debt 101 Master Manual. Make sure you do something today to help you get out of debt. See you tomorrow!

A friend called me today to tell me his credit card company (Bank of America) just increased his interest rate from 7% to 25%. His balance is about $18,000, so imagine how he was feeling.

Unfortunately, this is the way credit card companies have been doing business for the last few years. They can (and will) increase the interest rate any time they feel like it. In fact, next time you receive a “pre-approved” offer in the mail, read the fine print on the reverse side. It usually says (after promising a very low interest rate for one year, or for two years, “We reserve the right to modify your interest rate at any time and for any reason”.

Hopefully very soon a new credit card legistaltion will pass and help millions of credit card customers who have been abused by the credit industry for so long. U.S. credit card debt has jumped more than25 percent in the past 10 years and has reached $963 billion in January, 2009. The average credit card debt for households that have a card was $10,679 at the end of 2008.

I am sure you will agree with me that the credit industry should once and for all start taking care of their customers instead of taking advantage of them shamelessly. They have been doing whatever they wanted for so many years (and had made so many billions of dollars in profits) that is time now to put an end to their abusive practices. President Obama has asked Congress to submit to him by Memorial Day a bill that will redefine the rules of the game when it comes to credit card lending practices.

Stay tuned!