online pharmacy Weekly seel canadian pharmacy online ,;# cheap kamagra purchasing perscription drugs online. FDA approved canadian pharmacy !!@. buy cialis professional allowing for medicaments and health products. Providing services of usa online pharmacy delivering medicines at your door. Safe money with buy cialis {%[ cialis professional online of seeing a doctor. Doctor consultation Canada pharmacy and send the orders to customers. Is it legal to mail prescription drugs? Yes, online pharmacy Each of our buyer is entitled to obtain information about the source of any medicine. We try to keep price lists up to date. Price list of our pharmacies are updated daily - go to online pharmacies ~~?! order viagra professional where will be able to see the entire range of products. Debt Settlement Story - Part 4

First Debt Settlement Deal

If you are new to the blog, click HERE to start at the beginning of my story.
POST #18

On Friday, November 27, I made my first call to the Recovery Department. Knowing they would offer a better deal, I was quite optimistic.

As a conquering hero, I picked up the phone like a sword ready to slay my first debt dragon.

St George Slaying the Dragon

In this conversation, I integrated a technique that CRN had suggested – make my story real to the bank. If they see me as a family and not a number, they will be more likely to settle.  I re-told my back story with one addition – Thanksgiving dinner. It went something like this.

“At Thanksgiving dinner yesterday, I was really thinking about my debt.  I am so grateful for my family and I want to do everything I can to take care of them. As I said before, with my mortgage, child care etc…really struggling to get by. I want to do everything I can do avoid bankruptcy….”

This may seem manipulative, but it is also true for me.  Thanksgiving is my favorite holiday. It was authentic for me to talk about its meaning and how the imminence of bankruptcy reminded me what I am thankful for. I was sure my authenticity would help my case and make a settlement that day a sure thing. GUESS WHAT!!!!???

IT DIDN’T MAKE A SINGLE BIT OF DIFFERENCE THAT DAY.

But that didn’t deter me.

On 12/2, I finally made some headway.

I offered $5k to settle my $20k line of credit.  There was something different this day. This rep was the stereotypical bill collector. He had attitude and was attacking my credibility. He fired out questions like a machine gunman at a firing line.

  • How much are you making?

  • Your numbers don’t add up? Who’s giving you money?

  • Why are you paying your other creditors and not us?

bull-dog

Had I been unprepared, I would have crumbled. This rep was like a bull dog.

He DID NOT believe me, nor did he like what I was saying. However, I just stayed calm. Explained my story again, as I had dozens of times before and waited for him to come around.

After 20 minutes of grilling, he finally agreed to take my $5K offer to his supervisor and then…………..play the victorious music…….

He came back on the line and to say his supervisor had approved a settlement for $6924.11, or 35% of the total.

I was ecstatic, though I didn’t let him know this. I couldn’t just jump at the offer because according to my story, I had to come up with another $2K. I thanked him for the generous offer, but said I needed to make a call to see if I could arrange for the additional funds.

In reality, I had saved and borrowed money in advance so that when this moment came I would have funds on hand.  I asked him to fax the offer so I had it writing. True to bullish form, this rep gave me a hassle about faxing a letter.

Hear me when I say this:

Without anything in writing, your verbal agreement is at jeopardy.

If you send in funds without an agreement in writing, they can apply those funds to principal, deny that a deal was cut and hold you on the hook for the balance.  Seems egregious, but it does happen.

After what seemed like hours of haggling, this bull dog faxed the letter. Per our agreement, I called back 2 days later and paid by check over the phone.

This was one of the greatest days of my life. It was a rush and definitely inspired me to move forward with my 3 other accounts. Holy cow! This method really works. I jumped for joy, hugged my wife, called my CRN rep……and then went back to the drawing board.

This was only 1 of 4 accounts and by far the smallest account. I still had another $110,000 to deal with…..but I was optimistic. And for good reason.

Stay tuned. Stay afloat. Wealth and freedom are in your future.
Jonathan

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View Comments to “First Debt Settlement Deal”

  1. Ralph says:

    I am doing a debt settlement but Chase Bank is telling me they do not work with Debt Settlement companies, as of Nov 2009.

    What should I do? How am I to know if this is true or not? I could go with the Consumer help companies but they are more expensive.

  2. admin says:

    Ralph-

    Thanks for reading the blog and contacting me.

    Let me remind you that I am NOT a debt or credit counselor. I am merely a consumer, like yourself, who has navigated through debt settlement.

    From my experience, the bank will say they don’t do settlements, even though they do. Some will even go so far as to say they won’t work with debt settlement companies, as has been your experience.

    If you are not getting successful results, I suggest you try a DIY program such as the one I used with Consumer Recovery Network. You can reach them @ 208-265-8884. They are professionals and can examine your case to see if there is a way to negotiate with Chase.

    Good luck.

    Best,

    Jonathan

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Debt Settlement Mathematics: 2 + 2 = delinquent

If you are new to the blog, click HERE to start at the beginning of my story.
POST #17

So here I am in the middle of the story.  It’s a waiting game, but not without excitement. The collections calls have accelerated to 3-4 times a day and the letters come 2-3 times a week.

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I have repeated my story dozens of times to dozens of different representatives.  After consulting with my CRN rep, we decided to pursue one of my accounts more actively because it was accelerated to charge off .

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The bank normally delays putting accounts into charge off for about 150 days, BUT they have the option of doing it earlier.

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I kept track of how the accounts were progressing but the rules seemed to keep changing. I’d call on Monday and they’d say I was 120 days late and charge off was in 30 days. Then I’d call again on Friday, 5 days later, and they’d say the account was 143 days late and charge off was in 17 days. If you ask me, that’s funny math…..and we all wonder why our numbers in Quicken or Quickbooks never match the bank’s numbers!  The reps were just playing games to scare me into making a payment. Nice try!!!

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Regardless of their math, I kept calling every couple of days and kept careful notes. I knew a settlement was imminent. This account had a balance of about $20,000.  I would offer $5,000 as a settlement, and they would counter at $15,000. Every rep said that even if they could get a manager to approve a lower offer, they had never seen a settlement for lower than 60% or in my case, $12,000.

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That was a BLATANT lie.  Banks regularly make debt settlements for 25%-35%, but each department has certain restrictions. The Collections Department usually can’t go lower than 50%. However, once your account moves to charge off, the rules change.

On November 25, 2009, I made my final call to the Collections Department.

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WASHINGTON - NOVEMBER 20: A turkey named 'May'...

Then next day was Thanksgiving.

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I decided to take the day off from calling the bank, knowing that on Friday, I would call the Recovery Department. Truthfully, I was hoping to cut a deal prior to Thanksgiving so that I would have something to celebrate, but it all worked out for the best. In fact, my CRN rep encouraged me to fold my Thanksgiving dinner into the next conversation with the bank.

Stay tuned. Stay afloat. Wealth and freedom are in your future.
Jonathan

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Debt Settlement is like playing chicken with the bank

If you are new to the blog, click HERE to start at the beginning of my story.

POST #16

———————–

REMINDER:  Today is my interview with YourMoneyMattersRadio. Click on the link to locate an AM station, podcast or iTunes radio station to hear the interview.

———————–

So here I am in the midst of my first debt settlement conversation and the rep is trying to get a payment out of me in order to avoid charge off. This scenario had come up in prior conversations with my CRN counselor.

What CRN explained is that making a payment to avoid charge off is like hitting the reset button on the debt settlement process. I am still in debt for the full amount, but now out 500 bones. Even worse, the bank knows they can stronghold me into making payments again. The whole idea of debt settlement is to explain to the bank that you can’t afford to make payments, but you can afford to borrow money from another source to pay off the debt at a compromised sum.

My CRN rep also explained that the bank is MORE willing to settle for a lower amount once the account goes to charge off.  Yes, there was a risk that the bank will escalate my case and take me to court, but this was a small risk since I had been in such close contact with them.

As such, I decided to roll the dice. I ONCE AGAIN told the rep that since I am in a financial hardship, I can’t come up with $500.  I won’t ask a family member to borrow $500 to only get current on my debt. The loan from a family member was contingent on eliminating my debt with the bank.  Reluctantly, the rep wished me luck and said they would stay in touch.

I want to acknowledge an important point here.  The tide had shifted. I was more in control. The bank was willing to settle. They couldn’t scare me with bad credit ratings and charge off threats. I knew the longer we both waited, the more likely that I would get a lower settlement offer.

Image by Blondie5000 via Flickr

Yes, I was playing chicken with the bank.

thunderbirds

BUT, I felt very confident and informed due to my personal focus, steady education and CRN’s expert coaching.

Stay tuned. Stay afloat. Wealth and freedom are in your future.

Jonathan

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Debt settlement process ripened my debt like a sweet mango

If you are new to the blog, click HERE to start at the beginning of my story.

POST #15

Before I start today, I want to mention that I did a radio interview with Marc Pearlman on YourMoneyMattersRadio. It is set to air on Monday, May 3, 2010 on AM radio, podcasts and iTunes Radio. Marc is a top-notch financial advisor and runs an excellent consulting firm and radio show. Please visit YourMoneyMattersRadio and find out where you can hear the show.

Now back to my story.

After 100 days past due, things started heating up. As they say in the debt settlement business, “The debts are getting ripe.”

Ripe Red Apples - Ready for Picking - Filoli G...
Image by Jill Clardy via Flickr

Essentially, the debt moved to another department whose representatives (salesman!!!) were responsible for cutting settlement deals in the 50%-85% range.

On November 23, 2009 I was 132 days late on one of my accounts.

I called the bank for the 15th time and told them my story. However, since it was over 90 days passed due and the debt had been transferred to a new department, it was time to float the word “settlement”. I took a deep breath before I mentioned that word, thinking it would come at great resistance. I felt like a hospice nurse asking the family if it was okay to “pull the plug” on their dear loving family member. I expected the rep to be outraged by my egregious and forthright suggestion. Instead, the conversation didn’t skip a beat and the rep said we could work something out.

Wow! That was easy…..almost.

Their offer was for 85%.

HUH?

I said that would be impossible but I MIGHT be able to come up with $10K if I can make 3 payments over 3 months. The rep was hesistant and then put me on hold.

I was filled with excitement at the prospect of settling my first account. The fact that they were even considering a debt settlement was amazing!

But……

The rep came back on the line, and instead of addressing my offer, tried to get me to make a payment of $500.  He said if I make a payment of $500, it would prevent my account from going to “charge off” and give us more time to negotiate a deal.

Charge off is when the bank writes off your account as a bad debt and a business loss.  This is seemingly bad for me as a consumer because it hurts my credit rating. However, the ship had sailed on trying to protect my credit rating. I had already come to terms with that reality once I committed to debt settlement. Rebuilding my credit was another task to address once the debt settlement process was complete.  Sorry bank….you can’t lord that over me anymore!  As for making a payment to prevent charge off, that was another story and my CRN rep gave me some advice.

DON’T GIVE IN!!!

CLIFFHANGER!!!!!!

In the next post, I’ll discuss why that is good advice and how it worked out for me.

Stay tuned. Stay afloat. Wealth and freedom are in your future.

Jonathan

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Debt Settlement – 90 days of collections calls

If you are new to the blog, click HERE to start at the beginning of my story.

POST #14

waiting in line.
Image by ChrisM70 via Flickr

Nothing much happened here. It was pedantic. Kind of like waiting in line at the DMV before they started making appts. Remember that? You would get there at 7am and wait in line with 200 other poor souls for 4-5 hours. When you get to the desk it takes all of 10 minutes to deal with your DMV issue, but you had to jump through all those hoops. All formality. That was the first 90 days of debt settlement.

At some point the bank knows this is headed for debt settlement, and obviously you do, too. But you have to do the 90 days of dating before the bank will kiss you. That sounds weird, I guess. But actually, Wells Fargo took such pity of my situation that I feel like they both kissed me and hugged me.

Yes I did have to jump through the hoops and do 90 days of dating. But it was worth it. Debt settlement was worth the effort and the wait.

So for about 90 days, Wells left messages on my voicemail 4-5 times a week.  The messages were mostly from an automated system and all basically said the same thing. Certainly the calls from days 30-90 were incrementally escalated in sense of urgency, but nothing scary.  They wanted me to call them and they wanted a payment, but no one threatened me during this time period.

For my part, I called Wells Fargo reps every 2 weeks and told them the same story over and over again. Everytime, they tried to get me to make a payment.  I just kept telling them I was in a financial hardship and was unable to make a payment. There was very little conflict and very little to tell. I was surprised at how uneventlful it was. I kept a detailed log of every call made and updated my CRN rep to make sure I was on track. She assured me things were going as planned.

However, as I alluded to in an earlier post, it did get nasty in one of my negotiations. Surprisingly, this nasty conversation I am referring to was my first debt settlement.

In the next post, I’ll walk you through the debt settlement and my phone calls leading up to it.

Stay tuned. Stay afloat. Wealth and freedom are in your future.

Jonathan

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Credit Card Debt: 7 biggest mistakes I made

If you are new to the blog, click HERE to start at the beginning of my story.

POST #13

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The first 90 days of debt settlement are fairly uneventful.  You are making a lot calls to your creditor, retelling the same story over and over and logging everything that is said. The action in debt settlement starts to happen around 100 days.

This post will address some of the bone-head mistakes I made with my credit cards.

Let me say upfront, credit cards are not evil. Neither are guns. But both can be abused and both can kill you. I was one of those consumers that loved to charge stuff. Never did I consider the true cost.

When I was making tons of money, my thinking was, “I will pay this in full at the end of the month.” And I did.  When I was NOT making tons of money, my thinking was, “I need this now. Money will come in and I’ll pay for it later.” But the money never came fast enough. Never does when you think this way.

There was a fundamental idea I was misunderstanding. We have all been told this, but it doesn’t make sense until you are facing bankruptcy and you try to figure out how you got there.  Here is the simple truth.

CREDIT CARDS ARE VERY EXPENSIVE -

UNLESS YOU PAY IT OFF EACH MONTH.

First 4 digits of a credit card
Image via Wikipedia

You have heard the following explanation before, but if you are reading my blog because you in trouble, it’s likely you didn’t absorb the idea.

Let’s say you have $10,000 on a credit card at 15% interest (a modest rate these days!)

If you make the minimum payment plus 1% of principal, you will pay $225/month. At that rate,

It will take you 335 months to pay it off.

You will pay $11,979.29 in interest.

That is absurd. So that jacket on sale for 50% off that I just HAD TO HAVE really cost 20% more than retail. I would have been better off paying full price in cash. Wow cash, what a concept!

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TOP 7 MISTAKES I MADE WITH MY CREDIT CARD


  1. Spent more money on my card than I earned that month – I ACTUALLY DID THIS!!!

  2. Opened as many cards as I could, just in case I needed them.

  3. Played the shell game with 0% cards

  4. Justified spending because of airline points – completely idiotic!

  5. Used them on luxury items for retail therapy.

  6. Used them for business expenses that I didn’t really need for my business.

  7. Yo Yo spending. Maxed out the card. Paid it down. Maxed it back up.

There are million ways to abuse credit cards. Now, I have 3 credit cards with minimum balances and low APRs. I have them strictly to build my credit and use in case of an emergency. Everything else is paid for using my debt card or checks. There is no overdraft protection on my bank account. So, if I don’t have it, I don’t spend it!  What a concept!

Stay tuned. Stay afloat. Wealth and freedom are in your future.

Jonathan

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