Debt Reduction- Advice On Credit Card Debt Reduction, Debt Reduction Services, And Debt Reduction Plans

Ashley H asked:


Thursday, March 26, 2009
Texas Attorney General Charges Debt Settlement Company With Unlawful Conduct
AUSTIN – Texas Attorney General Greg Abbott today charged Credit Solutions of America, Inc. (CSA) with conducting an unlawful scheme that defrauded Texans with financial problems. According to the state’s enforcement action, CSA purported to offer a debt settlement service that would eliminate its customers’ unsecured debts – such as credit card accounts – in as little as three years.

Despite CSA’s promises, a state investigation revealed that the defendant failed to negotiate settlements with creditors for most accounts entered into its program. Further, when CSA did negotiate settlements with creditors, its clients did not always receive the 60 percent reduction they were promised. The state’s enforcement action seeks an injunction against CSA that will prevent the defendant from continuing to unlawfully promise services which it does not deliver.
Media links
Attorney General’s lawsuit against Credit Solutions of America

According to the state’s enforcement action, CSA not only charged its customers for services that were not delivered, but because its debt settlement program requires customers to stop making payments to their creditors, many CSA customers could face unforeseen late fees, additional interest, increased collections attempts, and even lawsuits by their creditors.

The Office of the Attorney General has received 140 complaints against CSA in the past two years. Additionally, the Better Business Bureau, which gave CSA a “failing” rating, received over 1,600 complaints against the company in the past 36 months.

Debtors should carefully research a debt reduction firm before entering into a contract or signing any documents. Options available to struggling debtors include credit counseling, debt management, debt settlement or bankruptcy.

Texans who need additional information, believe they have been harmed by a debt-settlement company’s unlawful conduct or wish to file a complaint may contact the OAG at (800) 252-8011 or do so online at www.texasattorneygeneral.gov.

Shelly Brogden

miss d asked:


I talked to one about $30,000 in debt on credit cards (don’t ask) and they said they could pay it all off in 3 and 1/2 years, I am getting a lower interest rate, but not any reduction in my debt, is this better than bankruptcy?

Hobert Larousse

jakeb asked:


Both Dems and Reps ran up the debt the last 8 years, Bush signed off on Dems spending and the Dems signed off on Bushs war spending. The out of control spending is not one parties doing. We need someone commited to spending reduction. Only McCain has suggested reduced spending. Obama has suggested increased spending, on his favorites of course.

Ted Perrott

i am zoe! asked:


Okay, here’s a scenario (sorry for the long story):
A married couple with two kids. The mother makes 1/2 the amount of money the father does. The father gives the mother a hard time about providing financially for the family. The mother knows that he’s cheated on her in the past (and there is a possibility that he’s still cheating on her). So he accuses the mother of not contributing towards the household money, especially for the kids, but the mother contributes as much as her salary allows her to. The husband, on the other hand, contributes less than she does (remember, he makes twice as much as her), but he says he pays for everything. Obviously not true. The problem is, when his kids ask him for money, he tells them he cant give them money because has so much debt that he has to pay off (he blames the debt on the kids). He’s very convincing when he speaks, but the problem is that he never shows anyone any proof of his debt. When he fills out financial papers, like applying for a price reduction on something, he does not write down the debt he supposedly has (the mother has seen these papers because he has forgotten to hide them where he usually hides his papers). Oh and dont mention anything about a divorce. There’s a huge chance that wont happen.

How is he in debt when he doesn’t really contribute a lot of money in the household. The mother makes less, but spends more and she has less debt than he does. How does that happen?
Is it possible that he is lying about his debt? How does one know?

Leon Pehl

jaycetan3 asked:


I have no problem making my minimum monthly payments on my credit card debt and have never ever been late, but I know there is no forward progress. At the age of 22 i finally want to buckle down and pay for it. A couple of my friends said i could call the bank and request a rate reduction, and maybe even a balance reduction. Is this true? How would i do this? Please provide any information that can help.

Thanks in advance!!!

Florene Lopardo

Emperor Bulshitian & lord mcsame asked:


that worked like this:

Any corporation that decides an Executive’s salary was worth more than 1 million dollars a year in salary and bonuses, would have to pay a an executive pay surcharge tax for any amount such executive received above and beyond 1 million dollars. This way if some CEO was making a salary of $20 million dollars, that corporation would not only pay that CEO’s salary of $20 million, but would have to pay a surchage tax of 19 million dollars to the federal govt. That tax could be used to help retire the national debt and renewing infrastructure.

Hey ….if people are going to be greedy and raking it in excessively, why not let uncle sam get in on the party…and the country as a whole would in fact benefit from the debt reduction and new infrastructure.

Allen Gionta

Kelvin L asked:


I believe its time for the United States to produce a new type of currency to handle inflation and debt and possible eliminate or decrease taxation. This will take no great effort or put the country at great finical risk in sense this will also answer president Bush and others call for indiviuals right to invest in Social Security.This new currency would serve as a investmment tool for all American it would be called the Amerio its value would be based on the actual value of a dollar and its value would be variable and base on United States balance budget standards. The US banking commission would post the currency value every day you might buy the currency valued at 25 cents today and in two years its worthy 50 cents because the purchase is proportional to debt reduction along with other factors. This currency would remain in circulation and be trade every day for example it would be able purchase what every a regular 25 cents could.

Darby Bennison

avalonianmoon asked:


I am having a difficult time wrapping my mind around solutions for this. Could I get some suggestions?

I am going through the Dave Ramsey Financial Peace University so that I can get rid of all of my debts and get in control of my money rather than it controlling me. So I am really not too fond of the idea of borrowing money for the event. My credit is not the greatest so I am not sure that I would be able to borrow it regardless. I have three credit cards and they are all maxed out (not to mention cut up). I have no extra money in savings. That is apart from my emergency fund that I am trying to build up. I do have some IRAs and my 401(k) but the taxes/fees/penalties for cashing those in early would be outrageous. I am already living pay check to pay check and barely have anything left over (which is why I’m working to get rid of my debts). My fiance does not make very much money. He works for his parents at their gas station and it is not doing so well. (looks like it might go under soon) He doesn’t have a whole lot saved up. He does have a few credit cards but it would be crazy for him to charge the wedding because he wouldn’t be able to afford the minimum payments. My father is disabled and on a fixed income. My mother passed away two Christmases ago. So my parents can’t help pay. My fiance’s parents are struggling financially with their store going under. The father is also battling against cancer (and winning) so he can’t work much. So they can’t help pay.

So I’m left standing in the middle of no where going “what am I to do?”
Some things I am doing…
- I am saving all of my aluminum cans from home, people at work, and some of my relatives and I’m going to sell them to help fund the wedding or honeymoon.
- I am going through my home and selling anything that I no longer want. Books. Clothes. Exercise equipment. Knicknacks. Anything. That will help go towards my debt reduction. The faster I get out of debt, the sooner I can put money away for the wedding.
- I also have my own business on the side to help with money, but business is not as great as it should be.

So do you guys have any other ideas?

Santiago Shank

lissyanna21 asked:


I want to sell my car (for which I owe nothing) and enter into a lease on a new car, using the liquidated equity to pay off other debt I have; but I don’t have time to go through the process of selling the car myself. If I trade the car into the dealership I get my lease through, could I put only a portion of the value towards the lease (as a lease reduction payment) and receive the remainder back in cash? Or is this simply not done?
I want to sell my car (for which I owe nothing) and enter into a lease on a new car, using the liquidated equity to pay off other debt I have; but I don’t have time to go through the process of selling the car myself. If I trade the car into the dealership I get my lease through, could I put only a portion of the value towards the lease (as a lease reduction payment) and receive the remainder back in cash? Or is this simply not done?

UPDATE: Just as an FYI, I’m well aware the advantages/disadvantages of leases, comparisons of stated vs. imputed interest rates, etc. (I’m an **** retentive accountant who spends waaay too much time planning in spreadsheets ) – leasing is simply a better option for me at this time in my life, so please refrain from answers stating nothing other than “leasing is evil”. Thanks!
Again, not to be a brat, but I’m not looking for “why do you want to lease” questions – I have other debts that have higher interest rates than the imputed interest on a lease would be, and yes, the amounts I am currently putting towards the other debt each month will be put towards my lease payment (which, knowing how I use my cars, will result in a lease buyout at the end of the lease that is lower than what I could turn around and sell the car for). So please, I have considered all the options, and this is the best one. Thank you.

Jeffie Hibberd

Lovable asked:


Its not anyones but their own fault for getting themselves into debt. Now I know their are differ situations so let me explain myself correctly:

Now I understand if you had a reduction of income and now ur not able to pay back debt. But why didnt you plan for these situations in the first place. Why did you go and charge what you cannot afford? After all that is one reason us Americans are in so much debt…. living outside our means. IF YOU CANNOT AFFORD, DONT BUY!!!

Now some exceptions are understandable:

Medical reasons, lack of education in order to obtain a good job to survive, using credit for LIVING EXPENESE, and im sure many reasonable explanations.

My point is why do many people with debt complain about their creditors when they new what this debt could do to you. Especially people with fairly great incomes.

Example: A couple is making $9000/month net income. One of them loses their job so now they down to $5000/month, yet they have 35k in unseucred debt. Living a great life with a great mtg, 3 car pmts ( new vehicles) and they still complain and whine about thier debt, their creditors , the economy. That just does not make sense to me. First of all, with this income you shouldnt even hae to use credit cards, why cant people just live within their means and adjust your life style with what you can afford!!!

Im just wondering what all of you have to say. Doesnt it make you angry that you would want to have the same luxuries and priviliges and people with great jobs and incomes do not appreciate?? Many people do not even own homes or even a vehicle. Why are we Americans so selfish??

Do you agree?
I posted question in wrong category. You answers are still appreciated!
FYI…I live a very well blessed life myself. I have learned from personal experiences the reality of our society and how not to place myself in these situations. I do sound very judgemental but I really do not think its for for others. This is my personal opinion and everyone is allowed to have one.
This has nothing to do with being jealous. I am NOT jealous of people going through these situations.

Good for you if your lucky enough to live a good life, my point is why do many people not appreciate it!!
Obviously some people are not reading carefully. I did say that their were exceptions that are understable!!!

Yasuko Rady