Your Legal Rights re:Unsecured Debt

Stating first that I am not an attorney. There are plenty of attorneys to work with in our business.

You have a right, in the U.S.A., to arbitrate/negotiate your unsecured debts (i.e. credit cards, signature loans, medical bills) or have it done for you. That is in the fine print on every credit card or unsecured debt agreement you have signed. In the fine print, because they really hope you miss reading it.

Life can change in seconds and significantly affect you. Think of Hurricane Katrina and others. Other things such as automobile accidents, major health changes, loss of your job, divorce, and things like this affecting your children or other loved ones who you need to help. I always think of one of my clients whose daughter was diagnosed with breast cancer, needed chemo and they had to help her, going through $40,000 in savings and mounting up over $100,000 in credit card debt.

You also have protection from the Fair Debt Collection Practices Act, monitered through the Federal Trade Commission and other agencies and companies. If you owe someone money, they cannot abuse you or they face a fine of $1,000 per telephone call.

Everyone has legal protection, and if your life has significantly changed on you or your family, stand up for yourself and your loved ones.

Natural Phone Cautions

We do much of our debt consultation business over the phone lines nationwide. We understand everyone's natural cautions to scams and fraud. We DO NOT ask for account numbers or SS numbers over the phone. These are only supplied in legal paperwork to the arbitration firm doing your work. Remember, legally anyone has to tell you if you are being recorded. The ONLY thing we ever record is any payment agreement, and this is done for your protection and the firm's protection, it is announced, and it is completed by a Quality Assurance Representative.

You can search me by name "Roger Foulks" on all the search engines and you will see that I am not hiding, and can be found! We post on many networks trying to find people who need help and every posting we do shows up in the search engines, so feel free to search away.

Roger Foulks, M.B.A.,Anna Maria, Florida,941-320-0818

ALWAYS check the Better Business Bureau File

Before you do business with any Debt Arbitration firm, you should always ask for and check their BBB file. We ALWAYS provide this to our clients, because our recommendation ALWAYS has a great BBB file. A great BBB file is one where only a small handful of complaints have been filed, and they are always show successful resolution. When a company serves 1000s of clients and has this kind of BBB file, you can be confident.

I have checked the BBB file on some companies mentioned by my potential clients and found hundreds of complaints. Don't know about you, but I would NEVER chance doing business with a company with that kind of BBB file.

"Universal Default Clause"

The new law allows ALL creditors to raise your credit card interest rates up to that companies maximum interest rate even if you are late on your water bill! Customers can potentially trigger universal default pricing by a credit card issuer by the following behaviors:

1. Being late (even once) on a credit card, mortgage, utility or car payment.
2. Going over the credit limit, on ANY credit card.
3. Carrying too much debt overall.
4. Using over 50% of the credit line for an individual credit card.
5. Having too much available credit and open trade lines.
6. Making too many credit inquiries.
6. Getting a new mortgage or car loan.

Your interest rates can skyrocket to 30 percent or more if you make late payments, or even make 3 minimum payments in a row!

"How can this be legal?" you may ask. The answer is found in the fine print of your credit card agreement, and it is called a "universal default clause." According to the Institute of Consumer Financial Education, currently almost 40 percent of credit card issuers apply this policy to their customers.

Your creditors also have the right to routinely monitor your credit file. So a creditor with a "universal default clause" will be watching -- and waiting for you to make a small mistake! Check all your credit cards for this clause in the fine print!

They are losing too much money on bad mortgages made, and they will be after your money.

Annual Report: $6.4 Million Saved by 101 New Clients

Our average new client had $26,786 in credit card and other unsecured debt. By the average rules of making minimum payments to get out of debt, with high interest rates charged, it can take 20+ years to get out of debt, and if not another dime is ever charged, it can take 3X the money, or over $80,300 to become debt free in this manner - making only minimum payments monthly on this debt. If a client is 55 years old, they could be 75 years old before they are done, assuming they never charge another dime!

If you have fallen victim to interest rate increases of 20-25% because of "universal default pricing" by your credit card issuer(s), the news can be much worse! It can extend your minimum payments in some cases to over 100 years!

Our "average client" cited above (using their federal legal right to have their debt arbitrated) can be out of debt for an average of $16,670, with all interest, fees and penalties stopped, for an "average savings" of over $63,000.

Their lives have been changed for the better!

Refinancing Your Mortgage is NOT debt elimination

What do I hear a lot? I'm going to refinance my mortgage and pay off my credit card debt, which will lower my payments. (Listening to a mortgage broker who is going to make a huge commission when you do this is dangerous!)



What you are really doing: Moving unsecured debt to secured debt-against your most important asset-your house. Now, if you can't make a payment, they can foreclose on the roof over your head.



You did NOT eliminate any debt, you have just restructured it and if you restructed it into a new 30-year mortgage, you will be paying off that same debt over the next 30 years. It might be at a lower interest rate, but you need to study your loan ammortization schedule and see what this new 30-year plan costs you. That mortgage broker may not be your friend - remember, his/her first interest is padding his/her pocket.



Your least cost option? Submit the debt to arbitration, eliminate it with no interest cost over the next 18-39 months.



Also, talk to us about how you can use a MMA to eliminate your mortgage in half the normal time.

Time to Clean Yourself Up for the Future!

No more risky real estate loans:

Countrywide Financial Corp., the nation's largest mortgage lender, said it lost $1.2 billion over the summer, as the amount of money it set aside to cover losses from loans gone bad skyrocketed. Angelo Mozilo, the chairman and chief executive of Countrywide, said the changes in the mortgage market over the summer were "unprecedented," and the company is eliminating nearly all but the safest loans from its product menu. It is also in the midst of cutting 12,000 jobs.

For potential mortgage borrowers, the comments paint a sobering picture of the difficulty in getting a new home loan in the coming months. "If your credit scores are low, your access to mortgage money has all but vanished," said Dan Green, a certified mortgage planning specialist and author of TheMortgageReports.com.

Footnote: "This week the local paper published figures for the Bradenton/Sarasota Florida market where we live: The median home sales price has declined by $109,000 since October of 2006, just one year ago."

A young, 20-something financial associate originally from California and now living in Florida said to me 1 1/2 years ago: "Real estate never declines in value." I said: "Let me tell you about Texas 1984-1985, young man." Now I've seen it twice in my 55 year lifetime.

It's time to clean up your financial house if you have too much debt of any kind.

55 New Clients Save $3.3 Million

55 of my new clients served in 2007 collectively are saving over $3.3 million by being a part of the Shepley Law program. This savings comes from breaking the habit of paying off their credit card and other secured debt with minimum monthly payments which can take 15 to 25 years depending on interest rates.

With Shepley Law arbitrating the client's debt, and the arbitrated amount being paid off with no interest or penalties added, my average client will save over $60,000 each, reduce their debt to income ratio substantially, and significantly improve their credit score in 18 to 39 months.

Reduce Your Debt to Income Ratio to Improve Your Credit Score

Your Debt to Income Ratio is your total debt divided by your income. If your total debt is $40,000 and your income is $40,000, your debt to income ratio is 100%, meaning it takes a full year's worth of income to pay off your debt.

If you have a mortgage of $120,000, you have added 3 more years of income or 300% to the ratio.

Most people do not realize that your debt to income ratio has a heavy effect on your credit score, even more than on-time payments. Paying off debts has a very positive effect on your credit score.

Clients in our program are getting completely out of their unsecured debt load in 18-39 months and seeing much higher credit scores as a result. Get on our MMA Mortgage Reduction program as well, and see your score go much higher in just a few years. The mortgage reduction program can been seen at: http://www.u1stfinancial.net/achieveunlimited

Why is this the case? Logically, if someone has debt which will take years to repay, they are at much higher risk of a negative life event: loss of job, disability, etc., and a higher credit risk.

Need credit counseling? Don't make hasty choice by "The Motley Fool"

This is the text of an article from "The Motley Fool":

Question: Should I use consumer credit counseling organizations (CCC) to help me get out of debt? Do they have any drawbacks?

Answer: Be careful with such outfits. Using them can do serious harm to your credit rating. If your credit report reflects that you've sought professional help, it can decrease your credit score significantly--sometimes as much as a bankruptcy can. Worse, while you proceed to dig your way out of debt (and sometimes for years afterward), many mortgage lenders won't consider you for a loan.

Roger's comments: CCC companies were started and supported by the credit card companies. They will show on your credit report as "third party payers." You will be paying interest. Most times, you cannot buy a car either.

The program we recommend is debt negotiation. You have the federal right to arbitrate your debts, which our law firm exercises for you. It does not show as a third-party payer, because you are actually paying from your own escrow account. You will pay no interest.

Know What You're Up Against - Video 5

Efforts at reform:
http://www.pbs.org/wgbh/pages/frontline/shows/credit/view/5_hi.html

Know What You're Up Against - Video 4

More complaints than any other industry:
http://www.pbs.org/wgbh/pages/frontline/shows/credit/view/4_hi.html

Know What You're Up Against - Video 3

Frontline details the credit reporting agencies:
http://www.pbs.org/wgbh/pages/frontline/shows/credit/view/3_hi.html

Know What You're Up Against - Video 2

Frontline details the Credit Card Industry's Best Customers:
http://www.pbs.org/wgbh/pages/frontline/shows/credit/view/2_hi.html

Know What You're Up Against - Video 1

Frontline details the biggest change in the Credit Card Industry:
http://www.pbs.org/wgbh/pages/frontline/shows/credit/view/1_hi.html

Debt Negotiation and 0% Interest

We are a "qualification office" located in Bradenton, Manatee County, Florida, working with a law firm that has negotiated debt with the major credit card companies and banks nationwide since 1995, with a spotless Better Business Bureau file (no consumer complaints).
The law firm contracts to reduce a client's total debt by 35% and while in the debt negotiation and reduction program, the client pays no interest.

Example: $10,000 in unsecured debt will be reduced to $6,500 and with no interest, the client can become debt free in 36 months for $185.00 per month. A set-up fee of $399.00 is the only additional fee.

If a consumer is trying to retire a $10,000 debt on their own by making minimum payments to the credit card companies, he or she will make payments for 17-20 years, depending on interest rate, and pay approximately three times the debt amount, or $30,000.

Therefore in this example, we will save the client approximately $23,000 versus making minimum payments

Facts from "In Debt We Trust"

"In Debt We Trust" is another interesting movie on the debt crisis by Director Danny Schecter. Visit the website at http://www.indebtwetrust.com Total number of Americans: 300,000,000. Total consumer debt in America: $3,000,000,000,000 (3 trillion). Average debt per U.S. Household: $30,000. Number of households not paying off their credit card balances each month: 6 in 10.

Consumer bankruptcies in 1980: 287,463. Consumer bankruptcies in 2004: 1,500,000, a 422% increase. Net profit percentage annually by the major credit card companies: 54%

The average college student graduates with $30,000 in student loan debt and another $20,000 in additional consumer debt.

My Average Debt Negotiation Client: What would $70,000 Savings in a Retirement Account Grow to?

In the example below, I projected an average savings of $70,000 for my average client over the next 17-18 years by using our debt negotiation program versus making minimum payments on their unsecured debt. Would not this savings be better in a retirement account?

Using a 10% average compounded return which is historically correct for a balanced stock portfolio, my projections say that this average client could build a retirement nest egg of $148,000 by investing the savings from our debt negotiation program, rather than paying the credit card companies 17-30% rates over the next 17 years.

This of course assumes that this client never uses credit cards and other unsecured debt again, which of course is our advice.

We ourselves have made this commitment, as we would rather enjoy this nest egg of $148,000, rather than be out $70,000. That is a swing of $218,000. Is it any wonder that we are warned consistently about the dangers of credit cards and other secured debt?

Roger would be happy to show and explain these projections with you. Call 941-320-0818 for a consultation.

My Average Debt Negotiation Client: How do you compare?

My average client who has entered the debt negotiation program 2007 year to date has an income of $47,600, credit card/unsecured debt of $29,839 for a unsecured debt to income ratio (excluding mortgage and vehicles) of 62.7%.

If they continued to just make minimum payments on this unsecured debt, this average individual would pay roughly $89,500 to the credit card companies and banks, roughly 3 times their current balances by the time their loans were paid off.

We project we will negotiate this average debtor to roughly $19,395 with no interest and each individual has the choice of a 18 to 36 month payoff to become debt free. This would be a monthly payment of $540 for 36 months ranging to $1,080 for 18 months. This would save this average client roughly $70,100 versus continuing to pay minimum payments each month for the next 17-18 years to get out of debt, IF they never charged another penny to their cards.

Call Roger Foulks, M.B.A., Senior Debt Consultant at 941-320-0818 for more information and a consultation about this lawyer-led program and your personal situation.