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Bankruptcy Vs. Debt Consolidation

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					                                    Index




                                                                 AL
Accountability, 212–213                          bankruptcy reform, 158–161
Action plan, 217–228                             vs. debt resettlement, 147




                                                            RI
  after action steps completion, 226–228         vs. debt settlement services, 140
  within next three to seven days, 217–224       decisions, 154–157
  within one week of completing Cash-            effects of, 158




                                                      TE
     FLOW Analysis (CFA), 224–226                market realities for lenders,
Adequate Cash-FLOW Index (CFI), 87                  162–163
Adjustable-rate mortgage (ARM), 113              moral obligations, 157–158
                                              MA
Adverse public records, 38                       potential credit impact of bankruptcy,
After action steps completion, 226–228              161–162
  ideal life, 227–228                            things to consider before, 163–164
American Bankers Association, 125                too good to be true debt-relief options,
                                         D

American Bankruptcy Institute, 156                  165–166
American dream, 202                            Bankruptcy Abuse Prevention and
                                  TE


Amortization schedule, 23–24                        Consumer Protection Act (BAPCPA),
Amounts owed, 39–41                                 158–161
Anchor management, 214–215                     Bankruptcy attorneys, 156
                          GH




Are You Being Seduced in Debt?                 Bankruptcy laws, 155
     (Cummuta), 204                            Bankruptcy reform, 158–161
Attitude, 82                                   Bank statements, 78
Attorneys, 164                                 Bonds, 195
                     RI




Automated payments, 218, 220                   Borrowing vs. spending, 232
Automatic withdrawals or deposits, 78          Brittanica Online Encyclopedia, 178
Available credit:                              Buffett, Warren, 190
              PY




  maximum amount of, 39                        Business costs, 60–62
  vs. outstanding balance, 39                  Buying vs. selling, 189
Available equity, 113
       CO




                                               Cable TV expenses, 74
Back-end service providers, 66–67              Capital gains tax (CGT), 192
Bad debt, 20                                   Car purchases, 22–23, 29
Bad debt portfolios, 142                       Cash-FLOW Analysis (CFA):
Balance sheet, 54                                vs. 20 minute phone call,
Balances on debt, 96                                62–63
Banking expenses, 74                             how to use, 71–83
Bankruptcy, 89, 138                              need for, 56–57, 69
  about, 153–156                                 negative cash flow, 55–56
  arriving at, 157–161                           positive cash flow, 55
  Bankruptcy Abuse Prevention and Consumer       purpose of, 13–14
    Protection Act (BAPCPA), 158–161             starting point, 53–55, 63–64

                                             281
282    INDEX


Cash-FLOW Analysis (CFA) categories:      Completion of credit counseling services,
  completion of, 79–81                         135
  debt and solutions stairway, 88–91      Compound interest, 22
  final thoughts, 81–84                   Compound interest type loans, 23
  monthly living expenses, 73–76          Concerns, 67–69
  net monthly income, 72–73               Consumer, defined, 237
  personal financial information to       Consumer confidence, 233
     complete, 77–78                      Consumer Credit Protection Act, 47
  quick review, 83–84                     Consumer Federation of America, 57, 128
  secured debt expenses, 76–77            Consumer-initiated credit inquiries, 47
  unsecured debt expenses, 76–77          Contacts to sales ratio, 61
Cash-FLOW Analysis (CFA) completion,      Counseling service payment, 131
     218–224                              Covey, Stephen, 237
Cash-FLOW Analysis (CFA) system, 58       Credit:
Cash-FLOW Index (CFI), 80, 84, 146–148,     about, 33–35
     218                                    credit report, 44–47
Cash-FLOW Index (CFI) categories,           credit report requests, 49
     85–91                                  credit scores, 35–44
Cash-FLOW Index (CFI) conditions:           defined, 35
  about, 85                                 financial circumstances and behaviors,
  adequate, 87                                 48–49
  healthy, 86–87                            impact of debt settlement on, 148–149
  poor, 88                                Credit balance regulation, 139
  stairway climbing, 90–91                Credit bureau, 37
Cash flow statement, 54                   Credit card debt, 20
Cash-FLOW Velocity, 81                    Credit card debt vs. mortgage debt, 120
Cash liquidity, 186                       Credit Card Nation (Manning), 171
Cell phone bill, 220                      Credit card offers, 158
Chapter 7 bankruptcy, 155, 159            Credit card statements, 78
Chapter 13 bankruptcy, 159                Credit checks, 43
Charged-off accounts, 141                 Credit cost spread, 107
Charting course, 93                       Credit counseling. See debt management
Checkbooks, balancing of, 54              Credit hangover, 21
Checkbook statements, 78                  Credit history length, 41–42, 107
Chessen, James, 125                       Credit limit, 119–120
Childhood education, 213                  Credit lines, 44, 96, 126
Children, participation by, 213           Credit profile elements, 35
Clason, George S., 8                      Credit rebound, 149–150
Closing costs, 115                        Credit repair, 34
Clothing expenses, 74                     Credit Repair Organization Act (CROA), 37
Coalition of four, 204                    Credit repair organizations, 37
Collateral, 21                            Credit report:
Collection activity,                        about, 44
     148, 159                               and credit counseling agency, 132
Collection fees, 145                        and debt resettlement, 147
Collection items, 46                        information missing from, 47–48
Collections, 143–144                        information on, 45–46
College education, 222–223                  review of, 161
Commercials, 208                          Credit scores, 31, 83
Completion, 79–81                           about, 35
                                                                         Index    283


  components of, 120                           Debt management agency program services
  credit factors, 36–44                             completion, 135
Credit trade lines, 46                         Debt management services, 89, 134–135
Credit types, 43–44                            Debt payment speed, 103–104
Cummuta, John, 99, 110, 170,                   Debt-relief service providers, 58, 60
    204, 226                                   Debt repayment investment, 183–184
Cunningham, Keith, 226                         Debt repayments vs. investments,
Cutbacks, 87                                        196–197
                                               Debt resettlement:
Day care expenses, 74                            about, 139–140
Debt:                                            vs. bankruptcy, 147
  defined, 19, 26                                Cash-FLOW Index (CFI) impact by,
  good vs. bad, 20–21                               146–148
  impact of, 221                                 and collections, 143–144
  kinds of, 21                                   credit rebound, 149–150
  as wealth consumer, 27                         and credit report, 148
Debt & Credit Solutions Stairway, 88–91, 95,     economic realities in workplace,
     98, 110–112, 139                               138–139
Debt & Credit Solutions Strategy, 89             impact of, on credit, 148–149
Debt and credit:                                 need for, 140–143
  fantasy vs. reality, 215                       payment history, 150
  understanding, 12–13                           pluses and minuses of, 144–146
Debt Dollar Drain, 9–12,                         reasons for considering, 145
     230–231                                   Debt restructuring considerations, 119
Debt education, 213                            Debt settlement services, 89
Debt elimination success:                        vs. bankruptcy, 140
  about, 201                                     potential effects of, 150
  income shovel, 205–207                       Debt-to-credit spread ratio, 40
  more money myth, 203–205                     Debt-to-income (DTI) ratio, 179
  perceptions after, 202–203                   Delinquency rates, 124
  success as a journey, 207–208                Diners Club card, 127
  time frame of, 201                           Discount fees, 117
Debt elimination time frame, 201               Diversification, 189
Debt forgiveness, 165                          Do-it-yourself approach, 88–89
Debt-FREE Millionaire Plan, 98                 Dollar cost averaging, 191–192
  charting course to, 13–14                    Donations/contribution expenses, 74
  vs. credit counseling, 130                   Dormant accounts, 42
  wealth accumulation, 182
Debt management, 48, 130                       “Econo-me,” 233
  about, 123–124                               Economic realities in workplace,
  vs. Debt-FREE Millionaire Plan, 130              138–139
  debt management programs,                    Economy:
     127–129                                     “econo-me,” 233
  financial descent, 125–127                     spending and borrowing,
  financial impact of, 131–134                     229–231
  financial realities, 130–131                   spending wall, 231–233
Debt management agency, 132                    Education expenses, 74
  and credit report, 132                       Einstein, Albert, 192
Debt management agency                         Emergencies, 99, 186
     program, 133                              Employment cutback, 138
284     INDEX


Employment history, 46                         Home equity, 113
Enrollment fees, 133                           Home equity lines of credit (HELOC),
Entertainment expenses, 219                       124, 165
Equifax, 44, 45                                Home maintenance expenses, 75
Expenses, trimming, 105                        Home upgrading, 224
Experian, 44, 45                               Household debt, 232
                                               Household supplies expenses, 75
Fair Credit Reporting Act, 38, 145
Fair Debt Collection Practices Act, 143, 145   Ideal life after action steps completion,
Fair Isaac Corporation, 36                          227–228
Family teamwork and involvement:               Identity crisis, 5
  accountability, 212–213                      Identity theft, 235–239
  children, participation by, 213              Immediate relief, 106
  debt education, 213                          Impulsive consumer buying missile (ICBM),
  elements of, 211–213                              208–209
  planning ahead, 211–213                      Income, 219
  spending together, 212                       Income Replacement Factor, 27–28,
  steps to continue, 211–213                        204, 206
Federal laws, 67                               Income shovel, 205–207
Federal Trade Commission web site, 66          Income statement, 54
Fees, 145                                      Industry:
Fees, mortgage, 116–117                          about, 64–65
FICO score, 36                                   back-end service providers, 66–67
Financial curveballs, 99                         concerns with, 67–69
Financial descent, 125–127                       lead generation, 65
Financial impact, 131–134                        sales agencies, 65–66
Financial mind games, 214–215                  Inflation, defined, 178
Financial realities, 130–131                   Inquiries, 46
Financial services industry, 64–65             Insanity, 238–239
Fine print, 28–31                              Instant-gratification lifestyle, 171
                                               Insurance bills, 78
Get-rich-quick schemes, 181                    Insurance expenses, 75
Gift expenses, 74                              Insurance products, 194
Good debt, 20                                  Interest costs, 24
Good faith estimate, 116                       Interest-only loans, 113
Grocery expenses, 74                           Interest-only mortgages, 29–30
                                               Internet service expenses, 75
Habits, 220                                    Investing basics, 187
Health and beauty expenses, 75                 Investing vs. trading, 189
Health insurance, 220                          Investment expenses, 75
Healthy Cash-FLOW Index (CFI), 86–87           Investment knowledge for wealth
Healthy Cash-FLOW Index (CFI), personal             accumulation, 197–198
    credit impact:                             Investment products, 194
 about, 95–96                                  Investment safety, 195
 debt payment speed, 103–104                   Investments vs. debt repayments,
 monthly break-even condition, 104–106              196–197
 overall summary of, 106–108
 snowball effect, 98–103                       Junk fees, 116
 strategically applying, 97–98
Helping others, 225                            Kaplan, Carol, 124
Home buying, 223–224                           Knowledge, 4
                                                                    Index        285


Late fees, 145                            Mortgage restructuring:
Lead/contact ratio, 61                     about, 109–110
Lead generation, 65                        debt restructuring, 112–120
Legacy, defined, 237                       mortgage awareness, 115–117
Legal advice, 145                          mortgage restructuring impact, 120–121
Legal obligation expenses, 75              post-mortgage warning, 119–200
Legal obligations, 78                      second step of Debt & Credit Solutions
Life insurance, 220                          Stairway, 111–112
Lines of credit. See credit lines         Mortgage Restructuring step, 116
Liquidity, 185                            Mortgages, borrowing against, 118
Living expenses, 74–76, 219
Loan consolidation, 112                   National Consumer Law Center, 57, 128
Loans:                                    Necessary debt, 20
  compound interest type, 23              Need, 69
  and credit counseling program, 133      Negative cash flow, 54, 55–56
Loan-to-value (LTV) ratio, 113            Negative cash flow questions, 218–219
Low introductory rate offer, 41           Nest egg for retirement, 188
                                          Net monthly income, 72–73
Maltz, Maxwell, 239                       Net worth, 185
Mannes, George, 170                       New credit, 42–43
Manning, Robert, 170–171                  Newsweek, 230
Marketing costs, 58–60                    Next three to seven days, 217–224
Market realities for lenders, 162–163     Nightingale, Earl, 207
Means test, 160                           “Not now” mentality adoption, 210–211
Membership service expenses, 75
Milestones, 222                           One week of completing Cash-FLOW
Millionaires’ self-image, 1–3                 Analysis (CFA), 224–226
Minimum interest payments, 25             Outstanding balance:
Money, 170                                 vs. available credit, 39
Money working for you vs. working for      payments made on, 24
     money, 8–9                           Overspending signs, 171
Monthly break-even condition, 104–106
Monthly income figures, 219               Past due time frames, 38
Monthly living expenses, 73–76            Paycheck stubs, 77
Monthly measurement:                      Payday loan expenses, 75
 3-by-3 Rule, 209–210                     Payment history, 107
 impulsive consumer buying missile          credit score impact, 38–39
     (ICBM), 208–209                        debt management services, 134
 “not now” mentality adoption, 210–211      debt resettlement, 150
 point of reference, 209                    mortgage restructuring, 121
 teamwork, 211                              mortgage restructuring impact, 120–121
Monthly payments, 96                      Payroll deductions, 218, 220
Monthly payment trap, 206                 Pay yourself first principle, 8, 124
Moral obligations, 157–158                Peer pressure, 225
More money myth, 203–205                  Penalties, 145
Mortgage book/statement, 78               Penny saved is a penny earned principle,
Mortgage debt, 20                              183–184
Mortgage debt vs. credit card debt, 120   Perceptions after debt elimination success,
Mortgage fees, 116–117                         202–203
Mortgage product, 89                      Personal financial information to complete,
Mortgage programs, 165                         77–78
286     INDEX


Personal savings, 230                      Selling vs. buying, 189
Pet care expenses, 75                      Settlement companies, 145
Planning ahead, 211–213                    Settlement payment plan, 147
Plastic parasites, 216                     75/25 Rule, 186
Pluses and minuses of debt resettlement,   Share prices, 188–191
     144–146                               Simple interest, 22, 23
Point of reference, 209                    Smallest balance prioritization method,
Points, 115                                     99–101
Poor Cash-FLOW Index (CFI), 88             Smart loans, 29–30
Positive cash flow, 54–55, 150             Snowball effect, 98–103
Positive cash flow questions, 220–224      Spending and borrowing, 229–231
Potential credit impact of bankruptcy,     Spending together, 212
     161–162                               Spending vs. borrowing, 232
Principal protection, 195                  Spending wall, 231–233
Profit/loss statement, 54                  Stairway climbing, 90–91
Property taxes, 220                        Standard fees, 117
Public record items, 46                    Starting point, 53–55, 63–64
Pyscho-Cybernetics (Maltz), 239            State laws, 67
                                           Statue of limitations, 148
Rate of return (ROR):                      Steps to continue family teamwork and
  compounding, 192–193                          involvement, 211–213
  during phase of wealth accumulation,     Steps to continue success as a journey,
     183–185, 195–197                           211–213
Refinancing. See loan consolidation        Strategically applying healthy Cash-FLOW
Regret, 82                                      Index (CFI), 97–98
Required minimum payments, 25              Success as a journey:
Retirement:                                  about, 207
  and inflation, 178–180                     anchor management, 214–215
  inflation adjustment, 172–174              celebration of, 221
  needs and resources, 169                   debt elimination success, 207–208
  needs identification, 170–172              financial mind games, 214–215
  nest egg for, 188                          monthly measurement, 208–211
  nest egg formation, 174–175                steps to continue, 211–213
  savings requirements, 174, 175–178
  variables, 180                           Tabb, Charles Jordan, 156
Retirement age, 226                        Tax expenses, 75
Retirement needs, 14                       Tax sheltering, 193–195
Retirement plans, 194                      Teamwork, 211
Revolving interest loans. See compound     Telephone expenses, 76
     interest type loans                   Temptations and cravings, 202
Richest Man in Babylon (Clason), 8         The 7 Habits of Effective People
                                                (Covey), 237
S&P 500, 177                               “The History of Bankruptcy Laws in the
Sales agencies, 65–66                           United States” (Tabb), 156
Samuelson, Robert J., 230, 231             3-by-3 Rule, 209–210
Satellite TV expenses, 74                  341 Hearing, 159
Scoring models, 45                         Time frame of debt elimination
Secondary markets, 115                          success, 201
Secured debt, 21                           Time to accomplish wealth accumulation,
Secured debt and unsecured debt, 21–26          185–195
Secured debt expenses, 71, 76–77, 114      Time value of money, 187–188
                                                                     Index        287


Too good to be true debt-relief options,   Upside down condition, 113
     165–166                               Utility bills, 77–78
Trading vs. investing, 189                 Utility expenses, 76
Transportation expenses, 76
TransUnion, 44, 45                         Wealth accumulation:
Travel, 222                                  about, 181–182
Travel expenses, 76                          dollar cost averaging, 191–192
Treating oneself, 209                        investment knowledge for, 197–198
Truth in Lending Act (TILA), 116             rate of return during phase of, 183–184,
20 Minute phone call:                           185, 195–197
  about, 57                                  share prices, 188–191
  business costs, 60–62                      tax sheltering, 193–195
  vs. Cash-FLOW Analysis (CFA), 62–63        time to accomplish, 185–195
  marketing costs, 58–60                     time value of money, 187–188
                                             vs. wealth consumption, 3
Uncollectible accounts, 142                Wealth consumption vs. wealth
Unemployment benefits, 154                      accumulation, 3
Unsecured debt, 22                         Wealth understanding, 5–8
Unsecured debt balances, 155               “What’s the Biggest Threat to the U.S.
Unsecured debt expenses, 76–77                  Economy?” (Samuelson), 230
Unsecured debt expenses vs. secured debt   Working for money vs. money working for
    expenses, 71, 114                           you, 8–9

				
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