"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.

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.

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.

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.

New Documentary Movie about Debt Crisis

A new documentary movie has just been released called "Maxed-Out" which is a shocking review of the current U.S. debt crisis, and the actions of credit card companies and banks in dealing with debtors. Read all about it and watch clips from the movie at:
http://www.maxedoutbuzz.com
If you are facing a personal crisis, call Roger Foulks for help at 941-320-0818