Kevin Trudeau Debt Cures

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					Should We Give Popular Debt Cure Books Any Credit?
In the most severe financial crisis in memory, Americans are fearful and confused. So many of us are trying to save our homes, or our businesses, or
our life savings, or all three. There is no shortage of experts who claim to have all the answers. If self-help is so plentiful, why do we feel so helpless?


Why would Suze Orman recommend a short sale to a woman desperate to save her home from foreclosure? How could Suze be oblivious to
mortgage modification companies, who have helped struggling homeowners modify their mortgages for 24 years? A modification is a permanent
change in one or more terms of a home loan. It protects the home from foreclosure, and reinstates the mortgage as current, with a payment the
homeowner can afford.


In January, President Obama acknowledged one of these companies: ALMA (www.almadebtrelief.com) by saying that his "housing relief and his
upcoming stimulus package would provide for devastated neighborhoods. Relief agencies like the one supported by ALMA will have more tools to help
devastated homeowners find relief and assistance to resolve their mortgage problems."


When we're not watching Suze on television, we're listening to Dave Ramsey on radio. Dave's solution for credit card debt is to stop using cards, close
down all accounts, get a second job, and focus on paying off the lowest balance credit card until all accounts have been paid off. But closing credit
card accounts is like detonating an atomic bomb to a credit score. It eliminates credit history, which is heavily factored into scores.


Dave continues to promote his 'pay the lowest balance first' strategy, while speaking against the newest computer programs, which act like financial
GPS systems. This proprietary software uses sophisticated algorithms to analyze all possible payment options in order to calculate the strategy that
minimizes interest, thus reducing the payoff of debt by one third to one half.


But the most egregious advice comes from New York Times #1 best-selling author, Kevin Trudeau. Trudeau promotes his latest book, Debt Cures, as
if it contained strategies never before revealed. For example: waiting out the statute of limitations, the time limit on collection of unsecured debt (credit
cards, personal loans and lines of credit), about 3-10 years, depending on where you live.


The statute of limitations strategy rarely works. Collectors are well aware of it, and they usually file suit before it expires. Further, the time frame begins
after the most recent payment, and given the fact that most people will make a payment at the threat of a lawsuit, the clock just starts again. For
example: if the time limit in your state is six years, and you make a payment after three years of delinquency, the statute renews to another six years.


The only other strategy Trudeau offers is do-it-yourself negotiation with creditors. He suggests providing two financial statements: a balance sheet that
lists assets vs. liabilities, and a profit and loss statement. The idea is to convince creditors that you are unable to satisfy your debt in full, compelling
them to agree to a lesser balance.


Does it work? Debt Cures is filled with testimonials. One Trudeau follower claims to have been able to negotiate his credit card debt from $50,000 to
$14,000. What we are not told is that this debtor had to pay the $14,000 in full in order to solidify the agreement. Creditors only agree to settle debt
obligations when debtors are able to make lump sum payments. How many people, delinquent on $50,000, have access to $14,000?


Trudeau says that with this debt cure, "You can use this method to cut your debts as much as half or 75%, even 100%." But professional debt
settlement companies are rarely able to obtain settlements of 75%. And from a creditor's perspective, why would you be compelled to permit your
customers to walk away from 100% of their obligation, when you could collect the debt in full, with litigation?


But Trudeau's worst idea is to provide creditors with a listing of assets, including "your home, or other real estate, cars, boats, stocks, bonds, 401K
investments, jewelry, art, business ownership, cash in the bank, etc." Creditors pay large sums of money to attorneys for asset searches. Why save
them that expense, especially when you will be providing creditors with a roadmap for collecting the entire debt by suing you and then garnishing your
wages, putting a lien on your property, and a levy on your bank account. It's like painting a large bullseye on your back.


Unfortunately, more than fifteen million copies of Debt Cures have been sold.


Gerri Detweiler, consumer advocate and author of The Ultimate Credit Handbook, sums up the attitude of most financial experts when she was quoted
recently as saying, "There are no secret loopholes, no magic formulas, no way to wiggle out of legitimate debt other than the things we already know
about. Package it any way you want, it's still the same basic advice ... and it's nothing you need to get a monthly newsletter to learn."


As long as this attitude permeates the debt relief industry, we will continue to be confused, and fearful. And in debt. There are real, effective strategies
for getting out of debt. But you won't get them from Suze, Dave, Kevin or Gerri.


About the Author
Doug Johnson is a consumer advocate in support of people who are struggling with debt. As host of the popular radio talk show, "The Truth About
Debt Relief", Doug reveals out-of-the-box remedies and strategies that are highly effective in assisting people with all forms of debt, including student
loans and mortgages. His Debt Cures website serves to educate debtors on their options, in order to protect them from false claims made by
Nashville Debt Consolidation Salespeople and misguided financial advisors.


Source: http://buildyourownempire.net

				
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posted:8/30/2009
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