Simpler, golden times for Michael Jackson. Will he and Shmuley Boteach find debt relief soon? (Photo: flickr.com)

Over the years, we witnessed the eccentricity of Michael Jackson. From his constant changing appearance and repeated debt relief missions to his legal issues, we ask ourselves the question: Why did he do it? What lead MJ to go that far? For instance, we remember him dangling his son over a balcony, the constant wearing of surgical masks, his Caucasian/Hispanic children, and him wearing pajamas to his court date. Now that Jackson is dead, it’s morbidly fascinating to see how many of his secrets float to the surface, and which person provides the fishing pole and bait, so to speak.

Shmuley Boteach Documents Time with Jackson

In light of celebrity Rabbi Shmuley Boteach’s “The Michael Jackson Tapes” and new book on the market, Jackson isn’t made to appear realistic, or even human. He’s made to seem even stranger. During 2000 and 2001, Jackson kept in contact with Boteach on a daily basis while he explored Judaism. The two hit it off, considering Boteach complimented Jackson by calling him very handsome and even compared him to another great pop star, Britney Spears (if you can call that a compliment). Jackson then assisted the rabbi by speaking at his forum at Oxford University and revealing the clandestine information that would later form Boteach’s book.

At first read, you’d assume the book should shed light on lots of Michael Jackson’s awkward moments, but it never delivers on that hopeful expectation. In fact, the tapes raise certain questions that could never be answered. Here are four items things left me baffled after reading this book:

MJ’s Shrine to Shirley Temple (True or False?)

In the book, it is said that Michael Jackson had an unusual obsession with Shirley Temple. Jackson said an unidentified guy would travel with him, and the man’s sole responsibility was to set up a room-sized shrine to Shirley Temple before Jackson arrived. This leads a person to ask, “What was up with Michael Jackson’s fixation with children in general?” Remember the days of Jackson hanging out with Emmanuel Lewis and Macaulay Culkin? What made their relationship so cryptic and mysterious was that neither one divulged personal details of their friendship.

Michael and Janet

Boteach’s book never really discusses the true relationship between Michael and his sister, Janet. Some people have been questioning if they really did or didn’t get along. Numerous rumors, as well as Michael Jackson’s confessions, state that he did unfortunately pester Janet. Perhaps this is understandable in light of the treatment Michael received from his father and brothers.

One subject that wasn’t addressed was Janet’s vocals being turned down in the mix on their duet, “Scream.” As usual, rumors were spreading about Michael seeking debt relief right before the recording of the song. People began questioning if Michael tried to sabotage his sister’s solo for him to shine brighter for more album sales. It’s evident that Janet looked up to big brother Michael and wanted to follow in his footsteps. However, Michael Jackson didn’t seem interested in helping her. We could chock this up to his talent simply being greater than hers, or we could leave the subject unanswered as “The Michael Jackson Tapes” does.

MJ: Straight or Asexual?

There have always been questions centered on whether Michael Jackson was actually attracted to women or not. Some people assume that he was merely pretending, but with so little facts to back up his claim of heterosexuality, what is true and what is false? Boteach, however, doesn’t believe that Michael was gay at all, and provides multiple instances where Jackson showed interest in the opposite sex. Katie Couric, Princess Diana, Brooke Shields and Tatum O’Neal have all spent quality time with Michael, though he tells Boteach that he was never intimate with these women because of his bashfulness. Jackson admitted that he’s never had to ask a woman out, because they’ve all asked him first. Alas, the question of Michael Jackson’s true sexual nature will go unanswered in this lifetime.

Michael vs. Madonna. Why the “Beef?”

No one knows or has yet admitted what events transpired between Michael and Madonna to make the King of Pop say that she is “just not a nice person.” He left his comments at that, but the unanswered question is why. What happened between the two to make Jackson, someone who claimed to not dislike anyone in the world, find something objectionable about Madonna? And what made Michael vehemently claim that she was in love with him? The world may never know.

Boteach Provides Interesting Entertainment

There might be some individuals who are bent on glorifying the material Boteach has put together, simply because it has the names Michael Jackson and King of Pop attached. But information that is worth sharing and paying attention gives something to the reader or audience. I’m not 100 percent sure what “The Michael Jackson Tapes” uncover, but maybe all they’re meant for is what Michael Jackson himself gave to us: pure entertainment. And with the entertainment being distributed through Michael Jackson’s branded name, debt relief might forever be a thing of Jackson and Boteach’s financial past.

Blind faith in your money manager is not a viable option

In the wake of the Bernie Madoff scandal, debt relief has become a persistent theme. Madoff had a long running Ponzi scheme in which he bilked investors of over $13.2 billion.

Under the guise of a gifted money-manager, Madoff attracted high-profile clients like Steven Spielberg, Kevin Bacon, and Hall-of-Fame pitcher Sandy Koufax. Madoff claimed his client’s investments were earning them big returns, but in reality he was using the investment money provided by new customers to fund those returns. The remainder of the money was used to sustain his lavish lifestyle.

A new skepticism

In the wake of such a high-profile crime, a new skepticism has been introduced to the business relationship between investors and money. For example, Tony Guernsey, a wealth manager for over 40 years, said that his clients are beginning to ask him a new question: “How do I know that I own what you tell me I own?” Guernsey said that he understands the concern in the light of recent financial developments. “The bottom-line,” he added, “is that the foundation between wealth manager and client, has been called into question, if not destroyed.”

Tips for investors

In an effort to restore consumer confidence, the Securities and Exchange Commission offers the following advice to consumers.

Read statements

The law requires all money managers to provide written account statements. Studies have shown however, that most investors rarely read them. To assist their customers, some companies have created simpler ways to track wealth. HSBC Private Bank offers WealthTrack, a system that clearly shows investors what they own, where it comes from and what the projected return is. Advent software is a wealth management reporting system that is quickly gaining steam with money management firms who know they have to regain consumer trust. The reality, however, is that consumers need to be responsible for their own investments. Blindly sending money to a money manager is no longer a viable option.

Monitor money managers

Financial advisor Kelly Campbell of Fairfax, Virginia, said that investors should “call the firm that actually holds their money to check on the manager.” Most independent money managers use third-party custodial firms to hold investor funds. Bernie Madoff, on the other hand, held the funds himself, which should have triggered the immediate doubt of his investors.

According to Campbell, “every bit of information an advisor can get, a client can get too.” It takes research, but consumers can check up on their investments for added peace of mind. Knowing where the money is and what it’s invested in is integral to understanding how it will play into retirement funding, debt relief, and savings.

Ask questions

Consumers should consistently ask questions based on their monitoring and reading of documentation. Carl Loughton, financial advisor in Chicago, Illinois, stated, “Many people are too trusting…they hand money to their money managers and walk away hoping it will sustain them in the future. Good money managers will provide answers before [the questions are asked].”

Consumers rarely reach the level of understanding a money manager has, but they can gain a basic understanding of documentation provided. Loughton added, “If something looks funny, ask. The worst that can happen is your manager saying ‘I don’t know’ and then check[ing] on it for you.” In the end, money is the responsibility of the owner. Consumers need to be proactive about their finances to ensure that someday their money will sustain their retirement, help them find debt relief, or finance their children’s futures.

Making Work Pay will cost millions of American taxpayers anywhere from $250 to $400 this coming tax season. These people may need payday loans. (Photo: flickr.com)

Were you one of those people who were elated to hear about the “Making Work Pay” tax break that President Obama gifted to the American people? Truly, it did benefit many people. Workers were paid back to the tune of 6.2 percent of their earned income, with a max of $400 for individuals and $800 for married couples filing jointly. Those singles making more than $95,000 and couples making more than $190,000 weren’t eligible, but then they didn’t have to be.

With that refund, those eligible didn’t have to resort to short term loan options like payday loans. However, for millions more, perhaps they’ll be wishing they had gotten a payday loan instead of having to pay back hundreds of dollars. And don’t even get me started on the farce that is tax refund loans (aka refund anticipation loans).

15-Million-Plus Owe Uncle Barack $250 Apiece

And that’s just the retirees!

That’s what the Associated Press is reporting as consumers are attempting to dig their way out of the blight of the recession. People are looking forward to some debt relief without the pain of tax refund loans, and in this instance, perhaps even without payday loans. But according to the IRS, many of people are going to be disappointed. What goes around comes around … and bites you in the hindquarters.

Who Will Owe Money Because of Making Work Pay?

We’re talking those with more than one job and married couples where both parties work (that’s a big one). These groups will have to repay $400, which could mean a smaller refund or even a tax bill. Even those in their golden years with rusty old Social Security and taxable wages will not have the lamb’s blood painted on their door. Their Obama giveback will be $250. Pony up, America!

Ah, the Memories of Magic Refunds and High Hopes

Individuals felt up to $400 worth of love for Making Work Pay, while couples doubled their pleasure up to $800. It was all part of the revolutionary stimulus package back in February of 2009. It pumped paychecks full of chicken broth, which most consumers promptly spent. If you spent it and you aren’t sure if you’re having enough withheld from your paycheck, click here for a handy calculator. If you don’t like what you find, file a new W-4… fast, because the 2009 tax year is almost over! The IRS has known about this problem since last spring, and they’ve been urging people to check their withholding amount since then.

Picking Up the Pieces of a Shattered Stimulus Plan

Payday loans may be short-term glue for what ails your budget, but this whole stimulus thing replaced pro-mise with pro-blems. For instance, a single worker with two jobs could get a $400 Obama-boost for each job, even though he’s only eligible for one $400 buff. That will have to be paid back. Similarly, with married couples where both work, if they combine to earn over $13,000, they enter a new tax bracket. There’s a total $1,200 boost instead of the $800 that should have been allowed. That’s $400 to pay back, friends. The Census Bureau says that 55 percent of all married couples in America are in this boat. That’s 33 million couples with 400 reasons to love Making Work Pay.

Wait, Don’t Forget Victimized Students

If they’re single and work part-time, they were eligible for the $400 credit. But, all my payday loans and garters, if their parents claimed them as a dependent, they didn’t qualify! In this case, Making Work Pay means paying back that $400.

Retirees Making Work Pay for Obama

More than 50 million Social Security recipients got $250 lump sum payments each, all thanks to Making Work Pay. But they were already receiving the credit for being employed, so the $250 refund will have to be paid back. It keeps getting better for American citizens.

Don’t Make the Same Mistakes in 2010

The Making Work Pay credit is still available, so tread cautiously. You certainly don’t want to create the same problem for yourself again. The average refund was about $2,800, so this Making Work Pay giveback will not result in a bill for many. However, some won’t be quite so lucky.

Iowa Sen. Chuck “Seppuku” Grassley of Iowa took a break from his more breathless moments to nail Making Work Pay on the head. It was “another unfortunate example of what can happen when Congress and the White House rush through legislation like the stimulus without thinking through the consequences,” he told the AP.

(Insert forehead slap and “I shoulda had a payday loan!” here)

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Debt relief is possible, even if you have to plan a Thanksgiving meal. (Photo: Wikipedia.org)

If you find yourself inhaling the last of the crouton dust after a fruitless search for the elusive meal, you are likely in need of debt relief. I’ve been there before, so I feel your fruitlessness. Now that Thanksgiving has flickered into view like flames from a toaster slot, you’re going to have to do a little bit better, particularly if you’re going to be having people over.

Plan and Save from Your Man Cave

Or feminine aerie, or whatever you call your esteemed hovel. You can plan how much food you’ll need and save some money in the process. That’s debt relief with wings that work, unlike the ex-bird that will grace your table.

Or Will You Even Give Them the Bird?

There are lots of other solutions, including ham, enchiladas or the gluten-free vegan feast of your choosing. But the main things you need to know are how long you’re going to entertain, how many people you’ll have and what time of day you’re doing this. If you’re doing an after-dinner party rather than an all day football gorge fest, you know you won’t need as much.

But Let’s Get to the Menu “Rules of Thumb”

Thanks to About.com, here are some general guidelines for you to follow. I’ve added my own comments, as I’m sure you’ll deduce. They’ll make Thanksgiving cheaper and contribute toward your debt relief journey.

1) Round Up When You Estimate

Better a little too much than too little.

2) Offer Ample Choices

Contrary to what you might think, more choices equals less of any one item. A little of this and a little of that instead of industrial-sized portions of an old stand-by make Thanksgiving parties spicy and (generally) cheaper for you.

3) Assume They’ll Try Everything

But they’ll likely go small, so that’s more leftovers for you! Trust me, it’s a psychological thing akin to nobody wanting to be “the one” who ate the last cookie.

4) Go Bulk for Sit-Down Dinners

Go with breads, nuts, olives, pretzels or anything cheap. This saves on prep time for those of you with no culinary skills. Besides, lots of bread will fill them up fast, make them feel like fat slobs and lower their resistance to your hypnotic suggestions. Tell them to stop eating and leave immediately… but wait until after dessert. The world’s all right with pie.

How Much SHOULD One Person Eat?

This varies, but you can do the math and figure out where the budgetary debris will fall.

Hors d’oeuvres and Salad?

Six bites before a meal. Remind them of Botswana if they object. If that’s the meal, think four to six bites per hour. With green salad, one ounce is right. Excess lettuce leads to emission problems (see the bean barb below).

Le Main Course?

Poultry, meat or fish are acceptable. About.com says six ounces per person if there’s one main dish, eight if there are two or more. To me, that seems counter intuitive to the myriad bulk plan offered above, but perhaps your guests are zombies and their lust for carne cannot be sated.

Rice and Grains? Yes Please! Pasta too!

One-and-one-half ounces as a side dish, two in a main dish like risotto. Can’t go wrong there, I think. And for pasta, think two ounces as a side, three for first course and four for main. Not all of those, however. Pick one. Repetition will cause your guest to plot your demise as you sleep. Change it up and you won’t have an “Ox Bow Incident” on your hands.

Get Starchy

Five ounces of potatoes should do it. The starches lull the mind into trance more readily, to which I’ve already alluded. It also weighs them down if you plan to use your guests as tackling dummies later.

Veggies and Beans within Your Means

Think four ounces of vegetables and two ounces of beans per person. I cannot stress enough that you adhere to think, particularly when it comes to the beans. You’re going to be locked in tight quarters with many people for a few hours, so think about it. If you have a gas stove, it’s a no-brainer.

You May Now Have Dessert

One thin slice of cakey substance is appropriate. In fact, it’s very cosmopolitan. If you’re going to get gushy, four ounces of pudding will do. For ice cream, think five ounces. If you mix the two, cut the portions in half. You’re out to perform debt relief surgery on yourself, so you don’t need pastry blobs giving you a hard time. Give those creampuffs the what-for if they question your stinginess.

But as always, do this in the most thankful manner possible. It is Thanksgiving, remember!

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Parents looking for some debt relief can find aid trough a tuition tax credit of up to $2,500. Part of Obama’s stimulus bill is the higher-education tax credit. The stimulus, signed into law in February, should hopefully help Americans who are financially struggling.

This particular tax credit aims to help parents who are paying for college tuition this year. One of the benefits of this credit is that it requires no additional paperwork or a hefty financial aid application. Students only need to file their tax returns on time to take advantage of it. Jackie Perlman, analyst for H & R Block stated, “This will definitely help people.”

Complicated tax code

Like all tax code, the tuition credit does come with some complexity. In return for sorting through its regulations, however is a “bigger and more inclusive [tuition credit] than previous higher-education tax credits, which were so complicated that more than a quarter of eligible taxpayers failed [to get them],” according to Perlman.

Those who were able to collect normally saw a return of about $900. This time around the $2,500 tuition credit promises to be much simpler to manage. Perlman stated, “Any professional tax preparer knows how to use the credit and parents filing themselves can still do it relatively easily.”

How the credit works

Perlman explained the rules by sorting out some of the details:

• Taxpayers can utilize the credit for a reduction of their 2009 taxes.
• The credit can be up to $2,500, and even if taxpayers owe no money, they can still get a credit of $1,000.
• The tuition credit covers tuition, fees and books that were paid for throughout the 2009 to 2010 school year.
• The tuition credit is available to undergraduates who are enrolled at least half-time.
• Taxpayers with $80,000 adjusted gross incomes or $160,000 jointly-filed incomes are eligible for the full tax credit.
• Taxpayers who earn more than $90,000 and $180,000, single and joint filers, respectively, do not qualify.
• Because the credit covers only tuition, fees and books, students who have scholarships or grants that cover these are ineligible.
• Students with any drug felony convictions are not eligible either.

In the end, the tax credit is useful to a wide variety of taxpayers who are seeking small ways of finding debt relief. They need to follow a few rules to take advantage of the credit. Taxpayers can claim 100 percent of the first $2,000 they spend on tuition, fees or books and 25 percent of the next $2,000 spent. For example, if a parent has a $4,000 expense for tuition, fees or books, they can take $2,500 off of their 2010 taxes. If they owe less than the $2,500, then the government will return 40 percent of “whatever extra credit they qualify for, up to a maximum of $1,000.”

Finding help with college

Parents should utilize every tool they can to help defray the costs of college. It’s standard practice that tuition, fees and books increase every year as colleges and universities try to manage their own debt in a difficult economy.

With potentially an additional $2,500 in tax credited money, consumers can find some debt relief to help with their budgets. It may take a professional to sort through the complete tax code, but in the end it is worth the added trouble.

In an effort to find new customers, banks are aiming to help with a big public concern: debt relief. TD Bank, located on the East Coast, hosted a free pizza night for potential customers. Citizens Bank has promised to give new customers $1,000 if they are saving for their children’s college fund. Bank of the Wichitas, in Oklahoma, is hitting the market hard with a new advertising campaign with “Where bankin’s funner!” as their slogan. Regardless of their geography, banks are looking for new customers and finding creative ways to reach out to a new market.

Since the Federal Reserve set an extremely low interest rate, banks are trying to work with the numbers. This explains why most banks offer bonuses , but with conditions. For example, Citizens Bank’s $1,000 college fund is available, but only if customers open a new account and deposit at least $25 per month. To qualify, families must have children younger than 6 and agree to contribute at least $25 every month until the child is 18. Another example is HSBC’s program to give away Amazon Kindles but only to customers who open a new account with $50,000 and agree to maintain a combined balance of $100,000 at the bank.

Small banks

To find good interest rates, some searching is required. First of all, smaller banks are now trying to compete with large banking centers. They are offering “rewards” checking accounts that often return 4 percent or more. Studies show that small banks often carry interest rates that are twice the national average. Gabriel Krajicek, CEO of BancVue.com, stated, “Most small banks have maintained the higher interest rate package for over a year, so their reliability is great.” BancVue.com is a web site that lists reward-running banking programs from around the country, at a community level. It’s a great tool for consumers to look for banks offering the best perks.

Online banks

For consumers looking for debt relief, searching online may also aid their financial positions. Online banks gained popularity a few years ago and managed to gain a strong market share almost immediately. Although online banks still have less than 4 percent of total retail deposits, their revenues have grown more than $160 billion since 2000. Part of the reason is their rates are normally better than brick-and-mortar banks. Online banks have smaller overhead costs and can pass the savings onto their customers. James Kelly, COO of ING Direct, the largest online-only bank, stated, “Despite the economy, we’re getting as much money as we need.”

The downside of online banking, however, is that most have limited online services. For extra accounts such as auto loans or credit lines, consumers still have to go elsewhere. Also, many online banks don’t have their own ATM networks, so getting charged a fee for using a debit card is inevitable. Check cashing can also be a hassle with banks that do their business solely online. Customers have to grapple with a traditional bank and explain their online status or mail the check to their online facility and wait for days, sometimes weeks, for their money.

Finding funds

In the end, debt relief is available to those to search hard for it. Fortunately in today’s computer age, there are web sites that do the work and research for consumers. Web sites like BancVue.com build their business on becoming a banking resource for their visitors. Consumers need to find tools like these and use them to maximize their savings.

Senator. Chris Dodd (Photo: Wikipedia.org)

The people of American are looking for debt relief any way they can find it these days, and it appears that the only way true gains in this area are going to be made is if major restructuring of America’s financial regulatory agencies occurs. Along those lines, controversial Connecticut Sen. Chris Dodd (who some consider to have turned a blind eye to the financial shenanigans that greased the way for the mortgage industry collapse) is hard at work. He wants to push through a new financial reform plan that would completely change the way the government would control banking oversight and debt relief.

Obama Praised Dodd’s Consumer Protection Agency Work

It appeared that Dodd was preparing to take banking regulation and debt relief in an exciting new direction much in tune with the president’s plans. However, recent signs indicate that Dodd’s plan will be significantly different that what was previously expected by the current administration. Specifically, Dodd wants nearly all bank-supervising powers to be removed from the Federal Reserve and FDIC (where they currently reside). An entirely new agency would pick up the reins. They would be responsible for all national finance institutions as sole regulator and guide toward debt relief on both the institutional and consumer level. It would replace the four federal regulatory agencies that exist.

Enter the Watchdog

Watching out for potential risks to the country’s banking and finance industries would become the responsibility of a new kind of watchdog council that would be a chaired by a single White House official. What this would accomplish is to take the teeth out of the Fed’s ability to conceive of consumer protection and debt relief measures on its own. America’s 12 Federal Reserve Banks would also potentially be in jeopardy or closing, according to the Wall Street Journal.

And guess what? In a time when President Obama constantly extols the virtues of bipartisan support, Senator Dodd’s actions could be seen as somewhat extreme. That’s because Dodd is going after his version of the finance reform/debt relief bill on his own. Sheila Bair of the FDIC is against Dodd’s ideas, and the Journal predicts that Senate Republicans will be as well.

The Frank-Man Commeth

Rep. Barney Frank (Photo: Wikipedia.org)

Rep. Barney Frank and the House Financial Services Committee is currently working on its own debt relief and regulation program. According to the Washington Post, Frank’s bill would take a much more conservative approach to regulatory reform. It would get rid of just the Office of Thrift Supervision. At the same time, rather than stripping the Fed of power, it would give them even more power to step in and control the actions of America’s banks.

Consumer Debt Relief Appears to Be Covered

That’s where the Consumer Financial Protection Agency the House has already concocted comes in. Mortgages, credit cards and various consumer loans will fall under that agency’s jurisdiction. Dodd and Frank are battling for a solution to the problems in the banking industry as a whole. Frank estimates the House will vote on his plan by the end of 2009, but Dodd is attempting to push his plan through even sooner than that, perhaps as early as next week if the Washington Post’s sources are accurate. Get ready for some major debt relief debate, America.

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President Obama's plans for the Consumer Financial Protection Agency could mean that debt relief is closer than ever for the downtrodden. (Photo: flickr.com)

The recession has forced America to face some of its most deep-seated systematic financial troubles. One thing that has become clear is that unscrupulous mortgage lenders and credit card agencies have dined for far too long upon consumers who largely didn’t understand that they could hold out for something better. Foreclosure and bankruptcy have amplified the burden on consumers, courts and the economy as a whole tenfold, which makes the question of how debt relief should be handled a more pressing issue that it has been in decades.

Cornell and George Washington Law School Economics lecturer and former professor Dr. Neil Buchanan ponders in a recent FindLaw column entitled “Should Federal Agencies or Courts Protect Consumers in Financial Markets?” which side of the regulatory coin America needs most. Existing regulatory agencies are being given more extensive duties by the Obama administration in order to help make America’s financial markets safe and sound. At the same time, new agencies like the newly minted Consumer Financial Protection Agency appears to be on its way to receiving unprecedented powers. In theory, it will have the power to police how mortgage lenders, banks, credit card companies, payday lenders or any other consumer finance company interacts with consumers. It is Buchanan’s opinion that allowing regulatory agencies to protect consumers is the best route, as relying solely upon the courts wouldn’t be enough of a deterrent to keep suspect lenders from indulging in bad behavior. The ideal system would have both in place as a regulatory enforcement clearing house.

But Isn’t This Big Government Clogging the Market?

Some will surely feel that way. What I have seen from state governments is an overzealousness to regulate payday lending, to the point where it is impossible for such legitimate businesses to operate in some states. Mortgage lenders and credit card company supporters would likely have similar complaints, although the path of destruction their industries have carved is rather hard to ignore. Buchanan begins his argument by considering the “courts only” option. If it were possible t regulating a market in need of deep repair like the mortgage industry through simple enforcement of the law, that would be ideal. However, Buchanan doesn’t see that as being enough. Sometimes the courts might work in favor of the consumer and debt relief, but not often enough. Extreme circumstances would be required to convince most judges to see cause to invalidate a contract. The “non-elite” consumers, as Buchanan calls those most in need of debt relief, would not receive the help they need.

There is precedent here, but it could be a one in a million kind of thing. Buchanan points to a New York Times story where a judge ruled that a homeowner’s mortgage debt could be completely discharged during bankruptcy. This loop in legal convention happened due to a technicality: the mortgage company couldn’t prove it had the legal right to collect payments on the homeowner’s mortgage due to the fact that their mortgage had been repackaged and resold so many times that the paper trail had been lost. The mortgage company claimed this was “standard procedure” now, but the judge wouldn’t accept such shenanigans. Since the judge wasn’t exactly sure who was due the money, he decided he couldn’t compel the consumer to make mortgage payments to any one party.

“Saved by a Technicality” Won’t Work for Everyone

Buchanan rightly points out that not all judges will be as determined to call mortgage lenders’ bluff in such situations. “Standard procedure” should hold in most cases, meaning that homeowners would still be legally obligated to follow the terms of their mortgage contract. And mortgage lenders have certainly learned something from that case and are making sure all paperwork is in order. Once again, the deck will be stacked against consumers.

Don’t Depend Upon Courts for Debt Relief

Courts enforce the law. When a consumer enters into any legal contract with a lender, the terms of that contract are in most case subject to enforcement by law. Buchanan considers the vast majority of consumers to be “grossly mismatched” against mortgage and credit card companies. Mandatory arbitration clauses, hidden interest spike triggers and means of computing interest are always written in the best interests of the creditor. Consumers often agree to such contracts because they feel they don’t have any other choice. New regulatory agencies may be able to curtail abusive practices that are currently considered legal, but until that time officially arrives, there is too little hope that the average consumer will be able to fight back through the court system.

Courts Have Been Friendlier to Finance Companies

Families can go to court to attempt to prove that they shouldn’t have to pay under the terms of less than legal contract. However, Buchanan believes most judges will stick to enforcing contract language. In turn, the lending companies themselves are effectively using the court system to compel consumers to pay, even if it is through wage garnishment.

What about “Equitable Doctrines” for Debt Relief?

Hoping that lenders lose their paperwork isn’t a good strategy. That’s where “equitable doctrines” come into play. These can create situations where courts might be willing to set aside otherwise valid contracts because they feel that it there were unconscionable circumstances that placed the consumer under duress or undue influence to sign. Buchanan draws our attention to the “doctrine of unconscionability” itself, claiming that it works in two ways. First, in terms of procedure, there is the scenario where a contract was formed under suspicious circumstances. Second, there is the scenario where the substance of a contract is deemed grossly unfair. If both conditions are met, a contract like a mortgage, credit card agreement, etc, will not be enforced.

Too Good to Be True?

Perhaps it is. It all looks great on paper, says Buchanan, but debt relief is hard to come by via equitable doctrines. Only the most extreme cases are considered by courts, and for most people, having trouble paying a mortgage or credit card they signed up for won’t be enough to sway a judge. This raises the question in Buchanan’s mind as to whether courts should be compelled by stronger legislation to accept equitable doctrine arguments based on things like unconscionability. But as with any other action fought through courts, the cost would likely be prohibitive. Moreover, lenders would still be favored because “losing a contracts case legally cannot result in a company paying punitive damages,” writes Buchanan. “If you lose a contracts case, you merely pay what you would have paid anyway; and if you win, you are ahead. Thus, from the standpoint of repeat players, there is no reason not to abuse your customers (except to maintain goodwill, which many of the companies at issue here have already forfeited).” Then there are plenty of consumers who simply will not have the stomach to sue or be willing to accept a lesser settlement.

Calling on the Government for Debt Relief

Traditionally, the government has remained behind the scenes while consumers have pursued their right to take debt relief matters before the court system. As Buchanan suggests, however, this route has not often proved itself to be effective for the average consumer. In situations where genuine signs of abusive practices and unconscionable contracts are involved, new government agencies could take up the baton and make financial regulation more consumer-friendly.

“An agency can be empowered by Congress to order changes in behavior, changing business practices broadly and generally in order to level the playing field on which financial institutions and their customers do business,” says Buchanan. There could even be scenarios where lenders themselves could support agency regulation over the courts. “Out of control lawsuits” that financial institutions claim burden them unnecessarily would certainly be something lenders would be willing to leave behind so that a regulating agency can rule on matters. “But that hypothetical,” Buchanan writes, “ignores the financial industry’s real agenda, which is to fight to maintain both weak legal rules (allowing them to win in court) and weak-to-nonexistent agency regulation.”

Congress, Act Now

New agencies are about to spring forth from the executive branch to regulate the financial abuse of consumers through deceptive practices. Congress is in a perfect position to arm these agencies with more consumer-friendly laws that will make reasonable debt relief easier to attain. It’s that kind of consumer protection that Neil Buchanan and most concerned consumers are in search of as America looks to emerge from the darkness of the recession into the light of a stronger domestic America.

Many consumers are worried about debt relief as they reach retirement age.  With news of Social Security and Medicare being tapped out within the next few decades, Americans are looking for other options to retire in comfort.  Fortunately, there are some jobs that still focus on pension plan guarantees.  Here are some industries that still support their retirees.

• Public-Service Sector workers.  Local, state and federal government positions are still highly attuned to retirement benefit payouts.  According to the Bureau of Labor Statistics, almost 80 percent of state and local government workers had traditional pensions last year. Olivia Mitchell, director of the Pension Research Council, stated “Police officers, firefighters, teachers and judges have always had pension plans.” She also noted that these careers are all putting more money into firming up their workers’ retirements to provide security for them.
• Large, private companies. Although pension plans are more difficult to find in the private sector, a recent study showed that 21 percent of private-sector entities had a plan for retirees. This is a huge benefit for employees who know they will have a guaranteed payout for their retirement years.  Consumers need to look for employment, but be aware of the retirement funding statistics. A recent poll showed that only 9 percent of companies with less than 100 employees and 34 percent of companies with more than 100 employees offer traditional pensions. Management and professional positions are also the most likely to offer  retirement plans, regardless of the size of the company.  Service-sector jobs are the least likely to have any retirement benefits.   Geographically, mid-Atlantic, Northeast and Pacific coastal regions are the most likely to have jobs with retirement benefits, in particular in their large metropolitan areas.
• Businesses with less than 10 employees.  Although most small businesses don’t offer retirement funding, exceptionally small offices normally do. This means offices with less than 10 employees, commonly doctors’ offices, law offices or family-owned businesses.  Author and expert on retirement Fran Hawthorne stated, “Very often, the owners of small doctor’s offices set up the pension plan because they want a tax-free way to put money aside for retirement. … The law requires that if you do this, you must provide the same pension for all your employees based on income.” This is encouraging news for Americans who want to work in the small business sector but still have a plan for retirement and debt relief in their elder years.

The key to success

Employees who are working for smaller businesses need to know that retirement funds are most beneficial when they stay with a company for an extended period of time.  Payouts are maximized based on time spent servicing a company.  It’s also beneficial to know that the sooner employees get retirement plans in place, the better they may fare at payout time.  Hawthorne added, “If you don’t get a job with a pension now, your (payout goes)  down every year because more and more pensions freeze each year.”

Planning for retirement

Planning for retirement is a number one concern of Americans today.  With unemployment running high, debt relief being sought and foreclosures increasing, people are wanting to store away money for the future.  There are still some ways to wisely handle the situation and live comfortably in the golden years.

No more doctor's note needed in Breckenridge, Colorado.

The federal government still states that possession of marijuana is illegal, as does the state of Colorado. However, in the city of Breckenridge, Colorado, people who possess less than an ounce of pot will not face any criminal or civil charges.

Yes, on election day 2009, Breckenridge, Colorado, voters made marijuana legal — to an extent. Basically, police who work for the City of Breckenridge can’t charge people with a crime for possessing up to an ounce of marijuana, though the police chief says they “still have the ability to exercise discretion.” Let’s pick this apart, shall we?

No state revenue

People often argue that pot should be legalized because it would bring in revenue through sales tax for states and perhaps provide some debt relief. However, Breckenridge, Colorado, has legalized only the possession of pot, not the sale of it. So the only people who benefit financially are still the dealers, who can still be busted if they’re found with more than an ounce.

Furthermore, anyone who gets caught by state police or federal agents can still be arrested for pot possession. So, really, the numerous publications that are saying the vote was “largely symbolic” are right on the money.

Do you have a doctor’s note?

Of course, medical marijuana is legal in the State of Colorado, and unfortunately for the voters of Breckenridge, Colorado, their symbolic vote might get the state some extra attention from the feds. In states such as California, where medical marijuana is illegal, federal agents are trying to shut down dispensaries.

This is, of course, because even medical marijuana is still illegal on a federal level. Now that Breckenridge, Colorado, has established itself as a progressive player in the game of legalizing marijuana, the state might become more of a target for federal enforcement of pot laws. Then again, maybe they don’t care if a bunch of hippies in a ski town smoke a bowl. I guess we’ll see.

Many businesses are looking to layoffs as a method of finding debt relief, but research is showing that this knee-jerk reaction to the economy isn’t always a good option. Peter Cappelli, director of the Center for Human Resources at Wharton School, stated, “It’s hard to save money if the jobs will be refilled within a year or so.”

The reality is that it costs to lay people off. There are severance costs, and unemployment insurance, not to mention possible litigation costs. In the end, there’s also the cost for rehiring and retraining replacement employees once the business gets going again. Here are some ways to cut back before resorting to layoffs.

New SBA programs

The Small Business Association is creating easier ways of procuring traditional loans by decreasing fees, increasing guarantees and changing eligibility requirements. A new program also was unveiled called the American Recovery Capital Loan Program, or ARC for short. It offers struggling small businesses loans if they can prove they have been profitable in prior non-recessionary years.

The purpose of these loans is to allow businesses to find debt relief by paying it down substantially. It also can be put toward freeing up money for other day-to-day expenses like payroll. Jonathan Swain, spokesman for the SBA, stated, “We estimate that we’ll be able to make about 10,000 ARC loans across the country. Based on the interest and the inquiries that we’ve been getting over the last several weeks, we do expect that these are dollars that will get out the door in a relatively short period of time.”

Shared work programs

Another way to avoid layoffs is using a shared work program. These are programs that offer partial unemployment benefits to employees whose schedules have been diminished. The Department of Labor estimates that Shared Work programs have prevented more than 75,000 workers from completely losing their jobs. Chief economist for the Labor Department Alexandre Mas stated, “When employers have to cut back, it provides an option for them so that when you have workers who have specialized skills” you don’t lose that knowledge.”

Each state can design their own rules for Shared Work programs. For example, in New York an employee’s work schedule can be cut by 20 to 60 percent to qualify for the program. They can collect benefits for up to 53 weeks. Pam Thayer of New Buffalo Shirt Factory stated, “Our business is seasonal, and we found when we did a generalized layoff, when we were ready to go full-bore production again it was very difficult to get our employees back.” Instead of laying off people, the company opts for the Shared Work program. A shared work program can also help employers find seasonal debt relief, without completely losing their workforce.

Furlough

A furlough is another strategy to avoid layoffs. A furlough is when employees are asked to take a week or more of unpaid time off to avoid layoffs. It can end up saving thousands of dollars in pay, freeing up money for other expenses.

A furlough, however, must be done under strict legal guidelines. Employees need to be notified in writing well in advance. There are also very different rules for salaried and hourly employees in terms of how furloughs work, so employers should check with an attorney. Employers can also check with the Fair Labor Standards Act for more information.

Layoffs aren’t an easy answer

Although layoffs sound simple, in the end they are not as cost-effective as an employer might hope. Employers should try other options to find debt relief prior to resorting to layoffs. Government assistance, Shared Work programs and furloughs are all options to look at.

(photo courtesy of flickr.com)

I just received a phone call with a number I did not recognize.  Naturally, I let it go to my voice mail. (After all, who wants to talk to a stranger?) The caller left a message,  and out of sheer curiosity,  I listened to it. The message went something like this: “We can help you pay down your credit card debt . . . call for more information . . . this is the last courtesy call I can give you. . .” I began to wonder: Is that about the credit card debt I haven’t paid on for the last five years, or is that another marketing ploy designed to prevent me from finding debt relief?

Step One: Stop Overspending!

Debt relief starts with one simple step. It’s so simple, in fact, that anyone can do it: Ignore the marketing attempts of big business and stop overspending. I told you it was simple!  But it’s not easy, because you must train yourself to bargain shop, as well as live simply. Deprivation, however, is not allowed. You can treat yourself to your favorite things every so often, but if you make it a habit, your spending can get out of control again very quickly, and you may never find the debt relief you crave.

Step Two: Live Simply

If you had to choose between having a large slice of pie today and never being able to have another slice of pie again, or having one bite of pie every day for the rest of your life, which would you choose? What if you had to choose between renting a tiny apartment for five years and then buying the house of your dreams with little or no debt, or buying that dream house now and losing more money?

As obvious as the best choices in these scenarios may seem, for many people they aren’t easy decisions to make. In fact, the average person can be faced with choices that obvious on a daily basis and make the wrong choice every time. (Well, I can, anyway.) Case in point: choose between putting that very expensive coat on my credit card now, or wait until I have saved up enough cash to buy it in six months.  Many people will choose the credit card. The second step to debt relief, therefore, is to live simply now so that you can have what you want later, without sinking further into debt.

Step Three: Pay Down Debts

The third step to becoming debt free is an obvious one: Pay down your debts on a consistent basis. What if you do not have enough money to live on, let alone pay down debts? Even in this economy, you can find something to do to earn extra money. Mowing lawns, shoveling snow, or cleaning houses for others can help you earn money to put towards paying down your debts. Also, take a few minutes to think about where your money goes every month.  You’ll come up with a number of ways to reduce your expenses and free up extra money to pay off your debts.

Step Four: Avoid New Debts

Once you’ve eliminated your debt, how are you going to stay debt free? What would happen if you suddenly lost your income?  Would you be able to pay your daily expenses? The best thing you can do to stay debt free is to begin putting money into an emergency fund. Experts say that you should have at least 8 months of living expenses set aside for layoffs, illnesses, or other emergencies.

The Bottom Line

Finding debt relief can be a long process, but it begins with that first simple step. When you finally decide to make the effort it takes to get rid of debt, the relief you’ll find will be more valuable than anything you can think of buying. It takes discipline, focus, and a strong commitment to improving the quality of your life. Take control of your spending today and you really can have a debt-free tomorrow!

Employing relatives in a family business can be a reward path to debt relief, but some precautions are necessary. (Photo: flickr.com)

The search for debt relief has been a strong incentive for business owners to employ their relatives. Statistics are showing that of the six-million-member pool of small businesses in the U.S., about 20 percent of those with 100 employees or more, involve two or more family members. Analysts are speculating that these businesses have a greater ability to withstand bad markets and economic problems. There are some interesting reasons why their resilience may be something to watch.

Patiently Committed

The first trait these businesses have is that their owners and all family members involved tend to be patient entrepreneurs who understand the market. They tend to be “building conservatively over years and turning a deaf ear to the siren song of debt,” stated Matthew Brady, head of Barclays, a wealth-advisory group. He claimed that these types of owners and workers are more prone to focusing on “legacy and commitment” than dollar signs and profit. They are a breed of worker who will put their full efforts into building their businesses and don’t read small negative signs as disaster. Brady added, “These workers live by putting their hands to the plow, rather than interpreting the weather.”

One example of this is Boardroom Inc. This is a family-owned and operated publishing company in Stamford, Connecticut. The company began in 1972 at the direction of Martin Edelston. He employed his wife and three children. Edelston stated, “We’ve lived through ups and downs of the economy but giving up was never an option. This is our life, not just a business.” It’s this type of commitment to the business that’s built it up to sales of $100 million while maintaining no debt.

Issues That Arise (aka “The Ties That Bind”)

There are some issues that can arise from hiring family members, however. These issues can make debt relief the smallest of a business owner’s issues if they aren’t careful. Here are some tips to be aware of when owners debate hiring their family members.

• “Use your brain, not your heart,” cautioned Don Schwerzler, founder of Family Business Institute. Because a family member lost their job is not a good reason to automatically employ them. Business owners need to make sure there is an actual position the family member would be a good fit for, before hiring them.

• Owners shouldn’t use hiring a relative as a sure-fire way to find debt relief. The reality is that if a relative is doing a job well, they should be compensated well. They should be earning and have the earning potential equitable to someone coming in off the street.

• Decide what will happen if the family member doesn’t work out. Having a hiring board or advisory board can make firing decisions easier, but if the person to be let go is a relative who the owner hired, they normally have the job of firing them.

• Business owners should be willing to listen to their family member’s ideas. Sometimes it takes a fresh thought to push businesses to newer heights of success. Schwerzler said, “In great family businesses, there is a surprising amount of disagreement when new ideas are first being discussed.”

• Families need to have a way to stay focused on the business’s growth. It’s easy to become “too casual” when family members meet in the board room. Schwerzler suggested using a family business advisor to manage. They specialize in looking “for sources of friction—principally with [the owner].”

Making Family-Run Businesses Work

Family-run businesses can be successful and fulfilling. When a new business owner makes the decision to hire family as a debt relief tool, they may find themselves either wildly successful or bitterly disappointed. They should be aware of the situation and dynamics of the relationship. Ideally, having people who are automatically invested in the company is what owners want. They should monitor progress along the way, but it is a workable plan.

Job hunters need a game plan if they're going to make it in this tough economy and find debt relief. (Photo: flickr.com)

Consumers need to find debt relief, but some people coming out of the hardest-hit industries may be the most desperate for it. Industries like auto, financial services, retail and mortgage were particularly damaged due to the recession. Although many job markets are showing nascent signs of stabilization, these markets may be lagging in development and employees may need to look elsewhere for job opportunities in the future. Many career coaches and human resource planners are encouraging people from these industries to venture out of their market and see what else the job landscape has to offer. Here are some tips on finding new employment.

Reorganize Job Skills

One way to find a new career is for workers to reassess their job skills. Every skill is beneficial and can be translated to a new industry. For example, if a person was an accountant at General Motors, they should look for accounting positions in other industries. Trudi Schutz, a career counselor, stated, “People often don’t want to leave their industries because they’re comfortable there, even when they’re miserable.” Her suggestion is for job-seekers to look for “careers that use those same skills they love, but in a new way.” She directed a former used-car salesman to move into the pharmaceutical industry, thus carrying his love and know-how of sales to a new market.

Develop New Skills

A general rule of thumb when job searching is that people who are “adaptable and willing to retrain themselves” are most beneficial to potential employers. Max Shapiro, CEO of PeopleConect.com, stated “Companies want people who can multi-task… the more senior someone is, the more likely it is that he or she will have to repackage the skills they already have.” Shapiro suggests everyone should rebuild their resume periodically throughout their career. Take an extra course, get a new certificate or find some other way of adding to the resume. It can prove to employers that they are able and willing to learn throughout the duration of their career.

Networking

If job-seekers need a job soon to help bring debt relief, one of the most popular ways of finding leads is to network. The old way of employment was to wait for recruiters to approach workers. This practice is long gone and job candidates need to be proactive in their placement. Shapiro suggested that all job-seekers make a list of their contacts that includes people they “can trust to brainstorm [the] wildest ideas.” Keep communications open with these people and ask them for referrals. Shapiro added, “Chances are someone will lead you to someone else who will lead you to someone else… I have a very high success rate when people just talk to every single person they know about opportunities.”

In addition, using online networking can be very helpful. LinkedIn, Facebook and Twitter are all online networking tools that help to put job-seekers in touch with potential hiring companies. It’s a great way to network with the industries that are desired.

Don’t Give Up, Job-Seekers

In the end, finding a job is a necessity. Bringing money into a household can help with debt relief, allow consumers to refuel money back into the economy and reinvigorate the market. Job-seekers need to be smart though and realize that they have a lot of competition due to the recession. Taking careful but proactive steps can lead to better and more satisfying job opportunities.

A membership at a warehouse store can save money. Image from Flickr.

Consumers are still searching hard for debt relief in today’s economy. Although there are some signs that the recession is coming to an end, many people are still wary of returning to old spending habits and are looking for ways to cut back. Many normal daily activities were put on hold or cut out of budgets in an effort to increase income. But there are some things that cannot be put off and are actually worth their cost in the long run. Here are some things you shouldn’t cut out of your budget:

• Having a furnace checkup annually is not something to scrimp on. Many consumers have put off household fixes, but this is one that shouldn’t be put off. In the end the cost of the checkup will pay for itself with lower utility bills. In addition, faulty equipment can cause fires or create fumes that are toxic to families. It’s also a great way to avoid emergency fixes if consumers periodically have their furnace checked. A good tech can avert bigger problems down the road.
• Hiring a professional to draw up a will is another expense that needs to occur. Regardless of the economy, some things need to be settled. Consumers’ after-life wishes are one of them. People can find lawyers who charge reasonable fees to settle complex estates and the fee will be well short of an expensive legal battle later on. A good lawyer can spell out exactly what your wishes are and create a rock-solid plan that will stand up to any probate court, beneficiaries or those who are left out of the planning.
• Another added expense that is worth it in the end is joining a warehouse club. Warehouse clubs can provide great money-saving deals on staple items. Eggs, butter, milk, cheese, pop and bread can all be purchased at notable discounts. Also, larger items like furniture and electronics normally come with even bigger savings. The average warehouse club strives for margins of 11 to 15 percent, as opposed to supermarkets, where they need a margin of 25 to 30 percent to survive. These are great places to find some debt relief because most consumers shop on a weekly basis, and cutting back on each trip can add up to big savings. The only caveat here is to purchase wisely. Consumers need to buy only what they will use. Throwing food away isn’t saving anything.
• Renter’s insurance is another positive expense. Consumers need to be aware of the unknown and if disaster strikes, a renter’s insurance policy can save them from having to replace everything. Fire, flood or other disasters can happen and protecting themselves with a $150-$250 a year policy is the best way for consumers to prepare.

These are all items that are worth the cost in the end and consumers shouldn’t be quick to cut them out of their budgets.

Saving money

Although in today’s tough recession everyone wants to save money, there are some items that should be looked at as necessities. Consumers need to find debt relief in other areas, while still protecting themselves from disasters. One of the best ways is to realistically think about an expense. If the savings in the long run outweighs the expense to maintain the item now, then they should include the expense in their budgets.

In a single-parent household where the mother is the parent, finding debt relief can be difficult. Certain states in this nation are more favorable than others. (Photo: flickr.com)

Single mothers are another part of society looking for debt relief. In today’s difficult economy, everyone is suffering but single mothers can have their own set of issues. Juggling employment, homes and children can be a daunting task even for two-parent households. For single mothers, it can be even harder. According to the Bureau of Labor Statistics, almost 73 almost of single mothers are employed or actively pursuing employment.

A recent survey done by the Bureau of Labor Statistics showed that some states are better at aiding single mothers. To gather their data, the agency looked at child care rankings, unemployment numbers, the wage gap, workplace flexibility and tax information guides. Here is a list of the top states on the list.

California

California is a highly esteemed state for single mothers. Workers get up to six weeks’ paid leave after a child is born. New Jersey is the only other state that offers that length of leave time. The federal government does not provide for time after birth and only eight percent of workers qualify through their employer. California also has one of the narrowest wage gaps between men and women. Nationwide, the wage gap averages at 77.5 percent, whereas in California it is 83.8 percent. Also, tax credits help single mothers afford daycare for children and reward companies for providing in-house daycare services to employees.

District of Columbia

The District of Columbia has the highest percentage of women in managerial and professional jobs. It also has a negligible wage gap as almost 94 percent of women earn as much as men. Mothers get paid maternity leave through their temporary disability insurance. An added bonus is that child care regulations are among the strictest in the U.S.

Florida

Florida is another state that caters to single mothers. Child care is top-rated and highly affordable. Florida is also one of the only states that requires in-house monitoring of all child care centers at least four times every year. The state is transparent in that they post all findings and inspections online. Debt relief is easily found in a state where the wage gap is about 80 percent, which is still above the national average. Florida’s cost for child care is average, making it affordable too.

Hawaii

Single mothers in Hawaii get paid maternity leave via the stated mandatory temporary disability insurance. The state is also petitioning to increase its paid family leave provisions, which would allow people paid time off for spousal and family illnesses. The state’s unemployment rate reached 3.6 percent, well below the national average which is expected to climb to 10 percent.

Massachusetts

Child care is very strictly monitored in Massachusetts. Centers boast more spaces in daycares and schools than that are children in need. Women’s earning in the state tends to be higher than in the rest of the country. Almost 40 percent of women are in managerial or professional jobs. Despite the plusses, it’s noteworthy to understand that child care costs are highest in Massachusetts compared with other states.

Finding Debt Relief can be Easier

Finding debt relief can be difficult for single mothers, but the above states have special provisions that make it easier for them to manage. If single mothers are looking for employment, it may benefit them to look at California, District of Columbia, Hawaii, Massachusetts and Florida. These states’ benefits may make raising their children – while maintaining full-time employment – a lot easier.

More creditors are agreeing to settlements on credit card debt before law changes make their rates illegal. (Photo: picasaweb.google.com)

A new study is showing that many lending companies are settling debts on delinquent credit cards. As a new way of mitigating losses, many credit card companies are settling cards for notably less than the total amounts owed. Edward McClelland, a writer in Chicago, is a consumer who had an outstanding balance of $5,486 to deal with. At a loss, McClelland offered the credit card company’s customer service representative half of the amount. Surprisingly, his offer was accepted without supervisory permission.

A growing trend with credit card companies is to accept settlements directly from customers. Due to the unemployment rate in the nine percent range and more people struggling with bills, companies are opting to take what they can get. Companies are also giving their customer service teams direct authority to settle with customers. David Robertson, publisher of the credit industry journal called “The Nilson Report,” stated that “Now it’s the card company calling you and saying, ‘Let’s talk turkey.’”

The Credit Card Secret

Many card companies are keeping their new settlement policies secret, however. Only a few are willing to disclose their new loss mitigation plans. Bank of America and American Express are both professing to using the tactic on a “case-by-case” basis. And other companies are mum on the topic, though the Bankers Association stated that settlements are a growing practice.

This change in procedures is an indicator that the credit card industry is losing some of its control over the market. The upcoming credit reform bill is another looming change that factors into lenders’ planning processes. Once 2010 arrives and the bill is passed, companies will have a hard time raising interest rates and many of their once-common fees will no longer be legally applicable. The reality is that despite changes and more rules for credit cards and lenders, they are still looking for ways to find debt relief. It’s estimated that credit card debt is reaching $939.6 billion and a record level is being written off. Adam K. Levin, founder of Credit.com, stated that “Creditors would rather have a piece of something now, instead of absolutely nothing down the road,”

Future Plans for Creditors

For the first time, credit agencies and banks are examining new programs that would allow counselors to use reductions of principal as part of their account settlement processes. Previously, counselors would work with companies to modify interest rates and late fees, but the balance had to remain unchanged. It was the one non-negotiable factor in accounts.

In addition, many creditors were used to being tough on delinquent customers, citing their assets as proof they could pay. In the end, creditors could sue or put a lien on the credit holder’s assets. The after effects of the recession have created a credit-holding body that has less to lose. This is posing a problem with credit card companies who still want their money, but find little options on how to get it.

Credit Cards Settling Like Never Before

Debt relief for companies issuing credit cards is a number one priority. The swelling amount of delinquent accounts that have come from the faltering economy has forced them to consider a new, more realistic methodology for dealing with consumers. They are willing to settle with customers and take what they can get, rather that staunchly demand money they probably will never see.

Did you save for this rainy day (image by wikimedia)?

With the various debt solutions flooding the debt help industry, debt relief has become a financial option for every household. Although there are no shortcuts to a debt free life, getting debt relief has become easier and if you can exercise some willpower, it can be made simple too.

Debt Relief Options

There are many debt relief options that are offered by the debt help companies. It may be debt consolidation, debt settlement, debt management or DMP and it can also be bankruptcy. How can bankruptcy give you debt relief especially when it is shunned by majority of the debtors? Bankruptcy makes you debt free but a ruined credit report is the price you pay for filing bankruptcy. When you file bankruptcy, you learn the hard way. For similar reasons, financial experts urge debtors to address debts while they are still young.

Different Objectives

Debtors opt for debt relief with different objectives in mind. Some seek professional debt relief because they are unable to manage their debts on their own and need guidance in dealing with debts. There are yet others that want to make their monthly payments affordable and manageable. This is achieved if you opt for debt consolidation and debt management in which you get a repayment plan and you are expected to make payments as per the new repayment plan.

Debt Settlement

In case of debt settlement, the outstanding balance is reduced greatly. These options are also referred to as bankruptcy alternatives. In all the above mentioned debt relief options, you have to make payments to the creditors. So, a portion of your paycheck or your income is being used up for debts.

Thing about this

What would you have done with this cash if you didn’t have to pay for a debt relief program? Undoubtedly, you would use it wisely. One of the most important ways to use this cash is by saving it for the rainy day. It is well known that the recession has taught consumers a lesson. However, consumers or debtors that had an emergency fund or some extra cash to bank on may not have felt the recession as severely.

Oh, yes, the Steve Phillips ESPN scandal is big news, and a lot of huff and guff is flying around about his dalliance.  Some people are willing to give a big cash advance to get a picture of either his mistress or his wife, Marni Phillips, for that matter.  For starters, it isn’t the first time it’s been brought up.  Then – ask yourself if it’s really even your business, or if the goings-on has anything to do with the fact that on Monday, you are probably going to have to get up and go to work.  (Well, if you work at ESPN, then it might.)

This is what this story does to me. Image from Wikimedia Commons.

Brooke Hundley Filed a Restraining Order

Yeah, his 22 year old mistress filed a restraining order against him after she told his wife, and at one point got the cops called on her because she showed up at the Phillips’ home.  Oddly enough, this Brooke Hundley was 3 years old the year Phillips got married. There are two words with which to describe this sordid little affair which, though full of sound and fury, signifies nothing – and those words are trailer park.  Granted, his behavior is far less than admirable, but who cares? He’s a baseball analyst.  Granted, he was an MLB player and then front office staff, then GM for the Mets.  He got fired in 2003.

Scott Phillips was forced to take an 8 day sabbatical in 1998 due to – you’ll never guess it – sexual harassment.  He admitted he had an affair with that woman as well – you’d think this guy would have gotten the hint.

Don’t we all have something better to do with our time?

You know, there seems to be excessive news about what entertainer, or personality or congressperson is doing what with whom, and it’s getting old.  Quite frankly, it’s boring.  Granted, when it was Bill Clinton, maybe it deserved more than a minute or two of coverage, but let’s be honest – snore! Don’t we all have something better to do? You could be cleaning your house or apartment.  Spending time with a loved one.  Learning a new skill, or maybe finally learning the right way to play “Stairway to Heaven.”  (Actually, it’s easy – I did that when I was 14 – “Bron Yr Aur Stomp” is way harder.)

Seriously people, get a hobby.   Most of these celebrities, once you think really critically about whatever goofy reason they have to be famous, it seems ridiculous.  Why don’t you wrap your heads about this little riff?  When you grant somebody status that hasn’t done anything personally to make YOUR life better, you grant them power they don’t deserve.

So someone can catch, or pass a ball.  So some people had kids, and then fought all the time.  So someone looks good.  So someone can ride some dinky skateboard around.  Does that really even MEAN anything?  Does that change anything?  Does it give you debt relief? Does it improve the relationships you have around you? Alter the laws of physics? No, it doesn’t; not in the slightest.  So why don’t we stop paying attention to ridiculous minutiae like the Steve Phillips ESPN scandal, and do something constructive with our time for a change?

Need debt relief (image by Picasa)?

Paying off debt has become a major concern for people in every section of the society, rich and poor. Taking a loan/credit is much easier but to pay it off is very difficult, especially if you keep delaying the repayment. Non-payment of loan/credit can lead to many problems, such as bad credit score, annoying collection calls, and the worst could be bankruptcy. So, to avoid such consequences, paying off your debt fast is the only solution. Debt can be paid off in 2 ways, by taking help of a debt relief company, or by handling debt yourself.

How to pay off debt yourself

When you decide to take full responsibility of your debt and pay it off soon, you need to be aware of many details. Knowing the details can help you negotiate with the creditors more efficiently and thus get better deal from them. While paying off debt yourself, you need to follow a procedure to reach your goal. Given below are the steps to follow while handling debt yourself.

1. Make a list of your debts – Before you start any negotiation with creditors, make a list of all your debts according to the interest rate payable on them. This will help you get a proper idea of what you have to handle.
2. Prepare a budget – When you make a budget, you’ll know how much money you take in and how much you spend. This will help you in meeting necessary expenses like housing, food, health care, and education; and also repay your loan at the same time.
3. Contacting your creditor – The next step is to call the creditor and fix an appointment. Tell him that it is difficult for you to pay off the debt and you need some help from him in repaying it.
4. Get a better interest rate – While negotiating with the creditors, the first thing to ask for would be a lower interest rate. This can be done by telling him that other creditors are giving you a better deal and thus you’re paying them off and cannot pay him for the high rate of interest.
5. Ask for other deductions – Along with a lower interest rate you can also negotiate for a suspended monthly payment and removal of extra fees like late fees, finance charges and over-the-limit fees.
6. Try for debt settlement – If you think that settling the debt is a better option for you, then negotiate with your creditor regarding this. Ask him to waive off a particular percentage of your total loan amount and accept a lump sum amount as the final payment. This will help you get rid of your debt much faster.

Paying off your debt yourself can help you in saving a lot of money that you would have paid to a debt relief company. It also protects you from scams as you’re not relying on any third party. But if you’re not confident enough about handling it yourself, or if your debt is very high, then taking professional help can be a better option.