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According to the Federal Trade Commission, "The consequences of bankruptcy are significant and require careful consideration. Other factors to think about: Effective October 2005, Congress made sweeping changes to the bankruptcy laws. The net effect of these changes is to give consumers more incentive to seek bankruptcy relief under Chapter 13 rather than Chapter 7. Chapter 13 allows you, if you have a steady income, to keep property, such as a mortgaged house or car, that you might otherwise lose. In Chapter 13, the court approves a repayment plan that allows you to use your future income to pay off your debts during a three-to-five-year period, rather than surrender any property. After you have made all the payments under the plan, you receive a discharge of your debts.

Chapter 7, known as straight bankruptcy, involves the sale of all assets that are not exempt. Exempt property may include cars, work-related tools, and basic household furnishings. Some of your property may be sold by a court-appointed official — a trustee — or turned over to your creditors. The new bankruptcy laws have changed the time period during which you can receive a discharge through Chapter 7. You now must wait eight years after receiving a discharge in Chapter 7 before you can file again under that chapter. The Chapter 13 waiting period is much shorter and can be as little as two years between filings.

Both types of bankruptcy may get rid of unsecured debts and stop foreclosures, repossessions, garnishments and utility shut-offs, and debt collection activities. Both also provide exemptions that allow you to keep certain assets, although exemption amounts vary by state. Personal bankruptcy usually does not erase child support, alimony, fines, taxes, and some student loan obligations. Also, unless you have an acceptable plan to catch up on your debt under Chapter 13, bankruptcy usually does not allow you to keep property when your creditor has an unpaid mortgage or security lien on it.

Another major change to the bankruptcy laws involves certain hurdles that you must clear before even filing for bankruptcy, no matter what the chapter. You must get credit counseling from a government-approved organization within six months before you file for any bankruptcy relief. You can find a state-by-state list of government-approved organizations at www.usdoj.gov/ust. That is the website of the U.S. Trustee Program, the organization within the U.S. Department of Justice that supervises bankruptcy cases and trustees. Also, before you file a Chapter 7 bankruptcy case, you must satisfy a “means test.” This test requires you to confirm that your income does not exceed a certain amount. The amount varies by state and is publicized by the U.S. Trustee Program at www.usdoj.gov/ust."
For More Information

Visit the Federal Trade Commission website, or contact an attorney.

Even if you are deeply in debt you can enjoy financial independence and plan for your future, but you need to act now. Call today to speak with an American No Debt consultant and find out...

*

How Much We Can IMMEDIATELY Lower Your Monthly Payments
*

How Much Your Consolidated Monthly Payment Could Be
*

How Quickly We Can Get You Out Of Debt
*

How Much You Can Expect To Save Through Our Debt Settlement Program

Call Toll Free 1-877-332-8411 now for your FREE Consultation and learn how you can live a debt-free life.

Please don't be afraid to call. We don't use high pressure sales tactics. Instead we provide useful information to help you make the best decision possible about your family's future.]]> no_email@example.com (john) http://www.undergroundfinancial.com/modules.php?name=Forums&file=viewtopic&p=58#58 http://www.undergroundfinancial.com/modules.php?name=Forums&file=viewtopic&p=57#57 7 TRUTHS ABOUT DEBT THAT WILL SET YOU FREE
Get Out of Debt ASAP!

People do a lot of crazy things when they're in debt. And unfortunately, most of what they do to try to get out of debt, only make things worse. Strategies that seem logical are not, and if you're not careful, you stand a good chance of losing everything you have... including your sanity!

If you are in debt your paychecks can be seized, your wages can be garnished, your retirement fund can disappear overnight, and any hope you may ever have had for financial freedom will be squashed like a cockroach under a hob-nailed boot.

Who can live under conditions like these? How can your marriage or family survive such a devastating attack on your pride, self-esteem, and independence?

If you are in debt, there are 7 critical truths you need to know if you are ever going to get out of the financial bondage you are in right now.

TRUTH No. 1 -- Banks and credit card companies offered you a taste of the good life,

and you bit the apple!

Americans have always worked hard for their money. In the old days everyone used to pay cash for anything they wanted, and money was put aside for a "rainy day". This is how people were able to control their financial future, and live the American dream.

So what went wrong? Why is the average American drowning now in nearly $10,000 of credit card debt? How can the American public owe nearly $100 billion dollars to an industry that is less than 50 years old? This has probably been the greatest snow job since Adam and Eve were hoodwinked by the devil.

It all started with a simple shift in attitude. Instead of saying, "Give me your money." banks started saying... "We'll loan you ours. Why wait and save up for something when you can have it today?" Sure sounds great, doesn't it? "You can have what you want right now, and you won't have to pay for it until you have the money." the banks shouted. And people started to listen. And not only did they listen, they bit the apple... right to the core.

So banks felt free to raise their interest rates, and created "credit" cards to make it even easier for consumers to make purchases without the hassles of having to fill out a loan application. It didn't take the banks long to realize that there was virtually no limit to what they could make with these plastic deceivers.

They could charge interest, fees, and penalties by encouraging people to use their "good credit" instead of cash. Then once debt built up they felt free to raise rates even more, and make additional money by assessing fees and late penalties.

But there is one fact that they tried to keep secret. Although it’s perfectly legal for them to keep raising your rates and charging you fees and penalties, the law also gives you the right to stand up for your financial interests and arbitrate a new agreement that will settle your debts on terms that are better for you.

But who is thinking about your future, and your family’s future? One thing is certain... the credit card companies and the collection agencies aren’t. They only want you to pay them as much as you can for as long as you can.

And there’s nothing credit card companies like better than a dutiful customer who will just keep paying, no matter what despicable tactics they use to get rich while you scrape and save for every penny. They want you to be a slave to debt FOREVER, because that’s how they make their money!

Actually credit card companies have been so successful with their campaigns that we hardly ever even complain about them any more. Americans have become so accustomed to paying fines, fees, and penalties that they see it as a way of life.

Don't believe us? Take a good hard look at your last credit card bill. You'll be amazed just how high an interest rate you really are paying. But your creditors aren't satisfied even with that. They look for every opportunity they can take to penalize you with late fees, assess charges hidden in the tiniest of print, and compound interest on top of all of these.

Have you ever calculated how much you will actually have to pay to settle a credit purchase, even if you never miss a payment? You’ll probably end up paying at least 3 times what you actually owe, and you’ll be paying those bills for the next 30 years or more. It's almost like having another mortgage.

How can you possibly be expected to pay all those fees and interest and have any money left over for food or other bills, not to mention your retirement and your family’s future? We know that your life is too precious to spend the next 20–30 years working off all that debt.

And that is why we created "American No Debt". Obviously we hope you will choose to work with us, and let us help you get out of debt. But whether or not you choose to enroll in our debt settlement program, we sincerely hope that the information we offer in this guide will help open your eyes to the sucker-punch you took and put you back on the road to financial independence.

TRUTH No. 2 -- You don't have to let collection companies harass you!

You can stop threatening phone calls, annoying letters, and sleepless nights. You can stop feeling like a loser, and put an end to the collection agency nightmare.

If you are being harassed by phone calls and letters, then you’ve probably seen all kinds of threats (like "legal action") that are designed to scare you into paying off your balance plus tons of additional charges they’ve tacked on. Well, no effective debt plan is going to allow collection agencies to harass and scare you.These fear tactics may work with some people, but there’s a better way to solve the problem than surrendering your financial future and by paying all the compound interest and high fees and penalties these agencies tack on.

If you are getting harassed by collection agencies and creditors, then it’s time you did something about it. Take a simple action, and stop them cold. Make the collections agencies contact us instead of you to settle your debt, so that you can have some peace of mind.

One of the first things that American No Debt can do for you is to make it illegal for collection agencies to harass or even contact you about the debt you owe. Once we do this, they are more than willing to work with us to settle your debt.

Our experts will handle the entire debt settlement process for you. Our arbitration specialists know how to respond effectively to their aggressive tactics, and will handle all communications with them to ensure that your debt settlement will have your financial interests in mind.

We will take your place on the front line, and give you a breather. We’ll keep you up-to-date with information on the status of your account, and we’ll stick with you from the moment you enroll, to the time your debts are all gone.

TRUTH No. 3 -- Credit card counselors work for credit card companies!

If you've ever thought about going to a "credit card counselor", think again. Have you ever heard of anyone going to a credit card counselor and actually getting the help they hoped for? Have you ever wondered why these "counselors" first find out how much it’s possible for you to pay your creditors, and then have you sign a contract to send all that you possibly can to them?

The answer is simple. They really don’t have your best interests at heart. If you want to know why, all you need to do is follow the money trail. There’s a reason why those credit card counselors don’t fight for you with your creditors.The plain truth is credit card counselors have gotten paid millions of dollars by credit card companies.

In fact it is commonly believed that many credit card counseling agencies are literally owned by credit card companies. Sure, they may hide it well by working through non-profit companies to make it seem like they’re working for you, and not for the money, but money doesn’t lie. The "New York Times" and other major publications have reported that officials have grave concerns over the close relationship between credit cards company and credit counselors. And they have discovered the undeniable truth that most credit card counselors make their money from what they’re able to get you to give to the credit card companies you owe money to.

It's no wonder then that credit card counselors aren’t interested in ways to get you out of debt. Just like collection agencies, the more they can get you to pay, the more money they can make off of you.

Does that sound like the kind of debt counseling help you need? We don't think so. We make sure you get real help from someone that’s going to fight for you, and not for your creditors.

American No Debt has never been paid one nickel by any credit card company to give settlement advice. All of our incentives are based instead on how much money we can save you. We will work with you to settle your debts as quickly as possible. In fact you can be debt free as much as 85% faster than if you went through a credit card counselor... without paying any interest, late fees, or penalties. And for a fraction of what you actually owe as well!

TRUTH No. 4 -- You don't have to take it any more! It's your right to arbitrate.

Credit card companies can increase interest rates to around 30%, and pile on additional fees and penalties as well. That can keep you in debt forever, unless you are willing to do something right now to save your financial future.

So stop taking a beating from your creditors, and get out of debt on your terms. If you want to do something to improve your financial future, you’ve got to decide to do something about credit card companies and collection agencies that pummel you with fees, interest, and penalties. You have to decide that you’re willing to make a positive change so that you can have financial independence in the future.

Most people submit to paying outrageous fees, penalties, and interest simply because they don’t know their rights. The fact is, when your credit card company sent you your card and you signed on the dotted line, they agreed to settle your debt by arbitration. Arbitration allows you to refuse to pay what they’re telling you to pay, so that you can set up a new agreement for settling your debt.

The American No Debt settlement strategy uses the right to arbitrate to establish a new agreement that will allow you to pay off your debts for a fraction of what you owe. Best of all, our service is guaranteed. We will work with you through the negotiation process, and work to find a debt settlement agreement that gets you out of debt in far less time than other methods, and by paying just a fraction of what you owe.

TRUTH No. 5 -- You don't have to pay everything they say you owe!

You can get out of debt FAST... typically 85% faster than if you went through a so-called credit card counselor. And we GUARANTEE that you can do it for a fraction of what you owe without going bankrupt or paying one cent of interest.

We're sure by now you're wondering how this is possible. Actually it's all very simple.

When you signed for your credit card, you and the credit card company both agreed that debts could be settled by arbitration. Arbitration allows you to form a new agreement with your creditors that will allow you to pay a fraction of what you owe, without interest, so that you can settle your debts by negotiation. This will allow you to reclaim your financial future!

When you enroll with American No Debt, we customize a financial program that helps you get out of debt up to 85% faster and allows you to pay off your accounts for far less than what your creditors say you owe. Let’s face it, if they were to have their way, you’d be paying off your debt at 29% interest for the next 30 years.

By enrolling in American No Debt’s debt settlement program, you can have enough money to live comfortably and usually be out of debt in 3 years or less! Once you enroll we will work with your creditors until all of your accounts are completely settled, and promise to stick by you through the whole program until you are completely debt free.

TRUTH No. 6 -- You can improve your credit rating while you eliminate your debt!

Your credit score really matters when you want to buy a home, a car, or get a line of credit. But do you know what your score is, or how it is computed? The major reporting bureaus consider three major factors when they compute your score.

1. Payment History: 25% of your score is based on your history of on-time payments

2. Debt-To-Income Ratio: 35% of your score comes from this

You need to make 3-1/2 to 4 times what you owe. For example, if you owe $18,000, you will need to make $63,000 to $72,000 annually in order to have a favorable score here.

3. Available Lines Of Credit: 25% of your total score

You should only carry 30% or less of your total available credit line. Ideally, if your credit card limit is $15,000, you should not owe more than $4,500 on that card at any given time. If all of your cards are "maxed out", you're in trouble.

When you are in debt even if you pay your bills on time, your debt to income ratio and available lines of credit will continue to hurt your credit score. So, instead of paying your credit card holders whatever they demand, we use your right of arbitration to set up a new plan that will allow you to get out of debt quickly without paying fees, interest, or penalties, and for a fraction of what you owe.

It is important to understand, however, that as we work through the process of settling your debts your credit rating may decline initially. But as our program starts to eliminate your debt, your credit score may improve dramatically due to a more favorable debt to income ratio and the availability of credit. This will upgrade your eligibility to obtain better mortgage rates, lower rates for car loans, and even better insurance rates.

TRUTH No. 7 -- It's easy to get started on the road to a debt-free life!

Our goal is to get you out of debt as quickly and as painlessly as possible. Working for you, and not your creditors, we will strive to save you as much money as we possibly can, settling your debts on terms favorable to you.

We can help start you on your quest for financial independence, beginning today. If you're fed up with high interest rates, stiff penalties, and ridiculous late fees... let an expert American No Debt negotiator take over the battle for you and settle your debts for a fraction of what you owe. In just three years or less, we GUARANTEE you will be living and enjoying a debt-free life.

To find out how our proven debt settlement plan can help you...

1. Call American No Debt at 1-877-332-8411 and ask to speak with a debt settlement consultant. There is absolutely no cost or obligation for this FREE service. Your personal consultant will help you determine your debt load, and a budget that you can easily live with. If you want to proceed, the consultant will then assist you in the enrollment process, and will send you the necessary enrollment forms.

2. With the advice of your personal consultant you will determine what amount you can comfortably allocate each month for debt settlement. From then on all you will need to do is make monthly deposits into your debt settlement account.

3. Once you receive the enrollment forms, please fill them out completely and return them to American No Debt in the pre-paid envelope. When we receive them we will immediately begin the debt settlement process. We will establish a debt settlement account in your name (this will be used to pay off your debts), contact your creditors, and begin to negotiate payment terms.

4. Each month you will receive an Account Report with details on the status of your settlement process. Simply follow the payment plan by continuing to build the debt settlement account. We do all the rest!

5. We will notify you when we reach an agreement with your creditors and send you the "good news" that specifies the payoff amount and the schedule to settle each account. Once we complete the payment plan, your credit balances will be at zero and you will see your credit rating skyrocket!

Even if you are deeply in debt you can enjoy financial independence and plan for your future, but you need to act now. Call today to speak with an American No Debt consultant and find out...

How Much We Can Lower Your Payments IMMEDIATELY

• Show You How Much Your Consolidated Monthly Payment Could Be

• Show You How Quickly We Can Get You Out Of Debt

• Tell You How Much You Can Expect To Save Through Our Debt Settlement Program

Call Toll Free 1-877-332-8411 now for your FREE Consultation and learn how you can live a debt-free life.

Please don't be afraid to call. We don't use high pressure sales tactics. Instead we provide useful information to help you make the best decision possible about your family's future.]]> no_email@example.com (john) http://www.undergroundfinancial.com/modules.php?name=Forums&file=viewtopic&p=57#57 http://www.undergroundfinancial.com/modules.php?name=Forums&file=viewtopic&p=56#56
And if that isn't enough, the FTC warns consumers to beware of other deceptive practices credit card counselors may use. "Many credit counseling organizations are nonprofit and work with you to solve your financial problems. But beware — just because an organization says it is “nonprofit” doesn’t guarantee that its services are free or affordable, or that its services are legitimate. In fact, some credit counseling organizations charge high fees, some of which may be hidden, or urge consumers to make “voluntary” contributions that cause them to fall deeper into debt."

Unlike credit card counselors, American No Debt, LLC doesn’t accept any payment from creditors, nor do we get a percentage of the amount that you pay to settle your debts. Everything about the American No Debt, LLC program is focused on getting you out of debt as quickly and as cheaply as possible.

The American No Debt "Debt Elimination Program" is in a class by itself, mainly because of our expertise in being able to apply rules of the Federal Arbitration Act (FAA) to reduce your debt. Once enrolled, you will immediately experience many financial benefits, and not have to wait months or even years to enjoy them.

With our program you can experience the rewards that come with knowing your financial future will no longer be plagued by debt, and will experience the immediate impact that comes with financial security. In short...

* You will have more money to live on, since your monthly debt payments will be considerably lower and consolidated into one single payment.

* You won't have to face your creditors any more, since we will be representing you in the debt settlement process.

* You won't have to pay the ridiculous fees, additional interest, and penalties your creditors have tacked on to your debt... guaranteed.

* You won't have to put up with harassing phone calls from collection agencies any longer. We use the Fair Debt Collection Practices Act (15 USC1692d) to stop those annoying calls, giving you some peace and quiet for a change.

* You won't have to deal with your creditors any longer. Our expert arbiters will negotiate with all of them for you, and will create a debt settlement plan that will reduce the amount you owe by as much as 60%.

* You will be debt free in only 12-36 months.

* You can choose an adjustable plan that can flex payments when you have an unexpected expense.

* You will have our support and guidance throughout the entire debt settlement process until your balances reach zero.

Benefits like these only begin to tell the story. Imagine how your outlook on life will change when your are out of debt! All you need to do now is call Toll Free 1-877-332-8411.

Invest in your financial future. You owe it to yourself and to your family. Ask for your FREE consultation with a debt elimination specialist, and find out just how much money you can save.]]> no_email@example.com (john) http://www.undergroundfinancial.com/modules.php?name=Forums&file=viewtopic&p=56#56 http://www.undergroundfinancial.com/modules.php?name=Forums&file=viewtopic&p=55#55
That contract may have been legal, but it certainly wasn't designed to be nice or even fair to you.

Credit card companies are in the business of making money, and making as much of it as they can. The problem comes when they try to do this at your expense. This is very important to understand.

It works a little like the old shell game. You purchased a $20 item with your credit card, but were 2 hours late with your payment. The credit card company then dings you for a $35 late fee, slaps on a $10 minimum payment penalty, and then jacks your interest rate up from 12% to 28%! And what do you do... you pay it, because you want to "protect your credit". Don't you think the credit card companies know this? How else could they get away with charging you over $70 for something you bought for $20!

Now this may sound a little bit like like extortion, but it isn't. What they did was "legal", but ONLY because you let them do it. And they can get away with it because you didn't actually read the agreement you signed. If you did, you would have seen that they "granted" you your legal right to arbitrate any debt dispute. And that's where we come in!

Arbitration... the best way out

Debt Settlement Prevents Financial Suicide

Debt settlement, a form of arbitration, is the key to getting you out of debt. It is a secret weapon that can save you thousands of dollars, and cut years off of your payment schedule. It can get creditors off your back, give you a good night's sleep, and pave the way towards a successful and secure financial future for you and your family.

If you have debt, you have a choice. You can take the count flat on your back, or get up and fight. But you can't go up against a 6 billion dollar company by yourself. That's our job. We do all the fighting for you, by using every legal right you are entitled to.


NOTE:

Paying your bills isn't enough. You've got to repair your bruised credit as well! ]]> no_email@example.com (john) http://www.undergroundfinancial.com/modules.php?name=Forums&file=viewtopic&p=55#55 http://www.undergroundfinancial.com/modules.php?name=Forums&file=viewtopic&p=54#54
There are many ways to get out of debt, and finding just the right solution for your particular circumstances depends on your willingness and ability to participate in a debt elimination plan. We are specialists in debt elimination through arbitration and debt settlement, and work mainly with people who have a lot of unsecured loans. If that is your situation our debt elimination experts can create a "debt settlement plan" for you that will absolutely, positively get you out of debt. And do it faster and at less cost to you than any other kind of debt reduction plan currently available.

Debt settlement is without a doubt the most powerful and fastest way to get out of debt, but again only if you have a lot of unsecured loans. If all of your debts are secured (e.g. mortgage, car loan, business debts, etc.), there is not much we can do to eliminate those debts directly. In that case you may need to pursue other options, possibly even bankruptcy. But we consider that route an absolute last resort.

If you have a combination of secured and unsecured loans, however, we can "free up" money to help pay off your secured loans by saving you money on your unsecured debts. We are experts in this and are very successful at what we do, so we aren't interested in working with individuals who aren’t serious about getting themselves out of debt. We're not a good fit for people who give up easily, or who aren’t willing to make themselves accountable for their choices and actions.

Pay your bills on time. That's in the Bible, Proverbs 3:27-28, TLB. "Don't withhold repayment of your debts. Don't say some other time, if you can pay now."

You are not really free when you are in debt. That's in the Bible too, Proverbs 22:7, NIV. "The rich rule over the poor, and the borrower is servant to the lender."

We are successful because we work one-on-one in individual sessions with people who have decided to regain their financial independence. We provide organization, education, direction, expertise, arbitration, negotiation, and accountability to individuals who are ready to start on the path toward a long-term future of quality living.

Unlike some other companies we won't waste your time with false promises about eliminating debt overnight, creating false identities, or other unscrupulous schemes. We won't advocate bankruptcy either (except as a last resort in special circumstances), nor do we recommend borrowing more money to get out of debt (debt consolidation).

We are experts at debt settlement, and can typically save you thousands of dollars on what you owe. We know we can do this because we've already done it for many other people in situations exactly like yours.

We promise that if you can follow our simple plan, we can get you out of debt in just 12-36 months, no matter what your current debt situation is. We have years of successful results behind us and have thousands of satisfied clients willing to recommend our services, but we can’t help you unless you make the decision yourself to follow the American No Debt program.

If you are ready to get out of debt for a fraction of what you owe, call an American No Debt consultant immediately at Toll Free 1-877-332-8411 for a Free Debt Analysis that will show you exactly how much you can save and just how fast you can start living debt free.]]> no_email@example.com (john) http://www.undergroundfinancial.com/modules.php?name=Forums&file=viewtopic&p=54#54 http://www.undergroundfinancial.com/modules.php?name=Forums&file=viewtopic&p=53#53
As long as consumers continue to make minimum monthly payments, creditors will not negotiate a reduced balance. However, when payments stop, balances continue to grow because of late fees and ongoing interest.[1]

Consumers can arrange their own settlements by using advice found on web sites, hire a lawyer to act for them, or use debt settlement companies.[1] Some settlement companies may charge a large fee up front; or take a monthly fee from customer bank accounts for their service, possibly reducing the incentive to settle with creditors quickly. One expert advises consumers to look for companies that charge only after a settlement is made, and charge about 20 percent of the amount by which the outstanding balance is reduced.[1]

History

As a concept, lenders have been practicing debt settlement thousands of years.[2] However, the business of debt settlement became prominent in America during the late 1980s and early 1990s when bank deregulation, which loosened consumer lending practices, followed by an economic recession placed consumers in financial hardships.

With charge-offs (debts written-off by banks) increasing, banks established debt settlement departments staffed with personnel who were authorized to negotiate with defaulted cardholders to reduce the outstanding balances in hopes to recover funds that would otherwise be lost if the cardholder filed for Chapter 7 bankruptcy. Typical settlements ranged between 25% and 65% of the outstanding balance.[3]

Alongside the unprecedented spike in personal debt loads, there has been another rather significant (even if criminally under reported) change – the 2005 passage of legislation that dramatically worsened the chances for average Americans to claim Chapter 7 bankruptcy protection. As things stand, should anyone filing for bankruptcy fail to meet the Internal Revenue Service regulated ‘means test’, they would instead by shelved into the Chapter 13 debt restructuring plan. Essentially, Chapter 13 bankruptcies simply tell borrowers that they must pay back some or all of their debts to all unsecured lenders. Repayments under Chapter 13 can range from 1% to 100% of the amounts owed to unsecured creditors, based on the ability of the debtor to pay. Repayment periods are 3 years (for those who earn below the median income) or 5 years (for those above), under court mandated budgets that follow IRS guidelines, and the penalties for failure are more severe.

How it works

Essentially, the debt settlement company negotiates on the borrowers’ behalf with creditors to reduce the overall debts in exchange for an agreement upon regular payments to be made. Only credit card debts can be handled, not student loans, auto financing or mortgages. For the debtor, this makes obvious sense – they avoid the stigma and intrusive court-mandated controls of bankruptcy while still lowering, sometimes by more than 50%, their debt balances. Whereas, for the creditor, they regain trust that the borrower intends to pay back what he can of the loans and not file bankruptcy (in which case, the creditor risks losing all monies owed).

There are obvious drawbacks – credit reports will show evidence of debt settlements and the associated FICO scores will be lowered as a result. There’s always the possibility of lawsuit whenever debts lay unpaid. Since few creditors wish to push borrowers toward bankruptcy – and the potential of governmental protection against all debts. In addition, the specific debts of the borrowers themselves affect the success of negotiations. Tax liens or domestic judgments, for reasons that should be clear, remain unaffected by attempts at settlement. Student loans, even those not federally subsidized, have been granted special powers by recent legislation to attach bank accounts without possibility of Chapter 7 bankruptcy protection. Also, some individual creditors, including Discover Card, for example, tend to have an aggressive resistance against negotiations.

Debt Settlement Companies

In order to work with a debt settlement company, a consumer needs lump sum cash (best scenario), or build up enough funds over pre-determined period of time. Once enough funds are built up the negotiation process can begin with each creditor individually. Accounts can be held by credit card companies or may be sold to collections agency for average of $0.15 on the dollar. In which case debt can still be negotiated. The debt settlement company negotiates with the credit card companies for 35% - 50% of the existing balances. The debt settlement companies typically have built up a relationship during their normal business practices with the credit card companies and can come to a settlement agreement quickly. Once the consumer pays the agreed upon amount, the debt settlement companies take a percentage of the savings of the forgiven debt as the fee. With the current economic crisis, more and more credit card companies may be willing to settle existing credit card debts rather add to their already large written off bad debt.

Debt Negotiation Companies

Also a type of debt settlement firm, they offer a consumer a different way to get out of debt. These companies work with consumers who have no cash to make settlement offers with the credit card companies. Debt Negotiation companies set up "trust" for you - though they are not always a licensed bank entity under the Federal Reserve. They collect a monthly fee to maintain the account, with the idea being that you are saving enough money to settle the accounts at a future date. A portion of the monthly payment towards the "savings account", a part of the payment is taken as a fee for the debt negotiation company. Unlike consumer credit counseling services, they do not pay your creditors each month, they put money into your "trust". Your creditors are not told of your "arrangements" with the debt negotiation company. A legitimate company will use an FDIC insured company for the trust account and give you access to it online 24 hours per day. They should also provide you with access to the negotiation correspondence with the credit companies.

The drop out rate of consumers from debt negotiation companies is high. [4] The debt negotiation companies do not handle calls from the credit card companies, nor the collection agencies. Credit card accounts typically go into collection after they are charged off, typically 180 days after the last payment on the account. The length of the program is often 3-5 years, and many consumers cannot keep up the payments for this period of time. Often, consumers wind up being sued or even more deeply in debt with added interest and fees piling up. This can be avoided by using companies with good standings and practices that protect consumers from these procedures.

Do-It-Yourself Debt Settlement

In general, only unsecured debt (not secured by real assets like homes or autos) can be settled for less than owed. Many people report success in negotiating a debt settlement for themselves [5]. It's possible for a consumer to imitate the methods of professional debt settlement companies or debt negotiation companies successfully.

An individual can obtain a settlement agreement with an original creditor just like a professional debt settlement company can, and should not be afraid to try. Initiation of negotiations can begin merely by calling the customer service department of the credit card company. Timing is everything; in general, the credit card company will only deal with a consumer when the consumer is behind on payments. A successful settlement occurs when the credit card company agrees to take a percentage of total account balance. A payment plan is not an option; the credit card company will demand that the consumer make a lump sum payment of the settlement amount.

Negotiating with a collection agency or junk debt buyer is somewhat similar to negotiating with a credit card company. However, many collection agencies (or junk debt buyers) will agree to take less of the owed amount than the original creditor, because the junk debt buyer has purchased the debt for a fraction of the original balance. [6]. As a part of the settlement, the consumer can request that collection is removed from the credit report, which is generally not the case with the original creditor. Even if the removal of the collection account from the consumer credit report has been successfully achieved as a condition of settlement during negotiations, the negative marks from the original credit card company will still remain, according to Maxine Sweet, a spokeswoman for credit reporting agency Experian. [5]

Do-It-Yourself Debt Settlement is a much cheaper option than hiring a professional organization, and in many cases can be more effective, since the consumer is much more vested in the process than an impartial third party.

Creditor’s incentives

The creditor’s primary incentive is to recover funds that would otherwise be lost if the debtor filed for bankruptcy. The other key incentive is that the creditor can often recover more funds than through other collection methods. Collection agencies and collection attorneys charge commissions as high as 40% on recovered funds. Bad debt purchasers buy portfolios of delinquent debts from creditors who give up on internal collection efforts and these bad debt purchasers pay between 1 and 12 cents on the dollar, depending on the age of the debt, with the oldest debts the cheapest.[6] Collection calls and lawsuits often push debtors into bankruptcy, in which case the creditor often recovers no funds.

Common objections to settlement

There are five main objections to consumer debt settlement: damages credit, increased collection calls, possibility of lawsuits, tax consequences and the need to settle with all creditors.

Debtors can still be sued

A debt settlement company does not make monthly payments on the debtor's accounts and they still remain in default. While the debts are still in default the creditor or its assignee can still file a lawsuit against a debtor. Most creditors and debt collectors want a lump sum payment to settle for less than the full debt. Although a debtor may make monthly payments to the debt settlement company, the amount is too small to successfully negotiate a settlement until after the debtor has made several months' worth of payments.

Settlement damages credit

The debt settlement damages the scores in credit report. A credit report is used by creditors to judge past credit performance to see if the applicant meet their criteria for lending. Insurance companies uses a person's credit report to determine premiums and prospective employers review the credit report to establish the character of a job candidate.

Tax consequences

Another common objection to debt settlement is that debtors whose debts are partially canceled outside the bankruptcy system will need to report the canceled portion of the debt as taxable income. (IRS Publication Form 982)

The IRS considers $600 or more of forgiven debt as taxable income.[citation needed] The forgiving creditor must provide the taxpayer with a 1099-C tax form. This form will list the amount of forgiven debt and interest in Box 2. Taxpayers with portions of personal loans forgiven may not subtract the interest reported in Box 3 from the amount of reportable income on this form.

However, the IRS does not require taxpayers to report forgiven debt if the tax payer was insolvent at the time the creditor forgave the debt. Being insolvent means that the amount of a debtor’s debts are greater than his/her assets (how much money and property the debtor owns). However, the IRS adds that “you cannot exclude any amount of canceled debt that is more than the amount by which you are insolvent.”[7]

For example, if a taxpayer is $10,000 in debt and owns $3,000 in assets, he/she cannot exclude more than $7,000 of forgiven debt from his/her income tax. Any forgiven debt over $7,000 that year must be reported as taxable income.

Trade associations

Due to the rise of debt settlement as a debt relief alternative to bankruptcy, groups working in the industry established trade associations to help secure industry standards that will protect consumers against unethical business practices. These trade associations were also established to lobby state governments because many state legislatures are passing laws that restrict out-of-state companies from providing debt negotiation services to in-state residents. The two major trade associations are the United States Organization for Bankruptcy Alternatives (USOBA) and The Association of Settlement Companies (TASC). Both of these organizations publish on their websites information about debt settlement and the debt settlement industry. Individual debt settlement consultants receive certification training (accreditation) from the International Association of Professional Debt Arbitrators (IAPDA).


http://en.wikipedia.org/wiki/Debt_settlement]]> no_email@example.com (john) http://www.undergroundfinancial.com/modules.php?name=Forums&file=viewtopic&p=53#53 http://www.undergroundfinancial.com/modules.php?name=Forums&file=viewtopic&p=52#52
Credit Score Piggy-Backing a Good Idea?; Landscaping Tips; Raising Kids in the NASCAR Fast Lane

Aired June 16, 2007 - 09:30 ET

THIS IS A RUSH TRANSCRIPT. THIS COPY MAY NOT BE IN ITS FINAL FORM AND MAY BE UPDATED.


BETTY NGUYEN, CNN ANCHOR: Well, here's another live look at the ethics hearing that is under way right now. Closing arguments in this hearing to determine if Nifong will be disbarred. The district attorney there in Durham County dealing with the Duke lacrosse case, in which all the players there -- the players involved, the three who were named, those allegations against them, that they assaulted a hired dancer, well, those all have been dropped.
And now Nifong is under the gun, and they are deciding today whether he will be disbarred. We have been listening to the prosecutor in this case, in these closing arguments, and as soon as we hear from Nifong's defense, of course, we will bring that to you live.

RICK SANCHEZ, CNN ANCHOR: Well, other news that we're following on this day, a 5-year-old girl who had been feared dead found alive after an ordeal that she survived all alone, by the way. Searchers in Illinois were stunned when the missing child came walking out of the woods yesterday. They were afraid that she had drowned along with her grandfather during a boating trip, and they simply hadn't found her body. Instead, his body had been pulled from the river, but the girl, dehydrated and hungry, was otherwise found OK. Emergency workers say it's a miracle that she was able to survive two days alone in the woods.

NGUYEN: Really, what a story that is. Well, we have much more coming up, but first, OPEN HOUSE with Gerri Willis is already in progress. We're going to take you to that now.

GERRI WILLIS, HOST: Good morning. I'm Gerri Willis, and this is OPEN HOUSE, the show that saves you money. Coming up, what you should do right now that will add major value to your home and not cost you an arm and a leg.

And one new idea that could protect your money.

But first, what if you could buy a better credit score? Well, the answer is you can. It's called piggy-backing. People with really great credit are granting access to their good numbers for a price. Is it too good to be true? Listen to this.

(BEGIN VIDEOTAPE)

WILLIS (voice-over): Alipio Estruch works as a mortgage broker and he wanted to become a real estate investor, buying homes in this Florida neighborhood where he lives. But his credit wasn't good enough. ALIPIO ESTRUCH, CREDIT CLIENT: I had a couple of things I was dealing with that were bringing my scores down.

WILLIS: Estruch claims identity theft and too many credit inquiries made him unable to get the mortgage he wanted. A friend told him about a company that might be able to help. Instant credit builders. It's one of a number of new companies who offer a unique and controversial way to improve your credit. The company's Web site promises to raise your credit score in 90 days or less.

JOHN COATES, INSTANT CREDIT BUILDERS: Our goal is to help them get their lives back on track. Help them get their lives into a position where they can afford to pay for their homes, send their kids to college, save money for themselves.

WILLIS: Here's how it works. A client with poor credit contacts Instant Credit Builders and pays them a fee, starting at $900 for their services. ICB gives part of the money, an average of $150, to a cooperating person who has good credit, a credit card or a line of credit that has been open for a long time with a history of on-time payment. The person with good credit adds the person with poor credit as an authorized user on the account.

Now the solid payment history of the credit card becomes part of the credit record of the person with poor credit and automatically boosts their score. ICB says the credit score can go up by an average of 30 to 45 points for each card the client is added to, which can be the difference between approval and denial of an application for new credit.

(on camera): Instant Credit Builders says it has found a loophole in the credit scoring formula that helps clients get a fresh start. But the lending industry says, it's not a loophole, it's illegal.

GINNY FERGUSON, NATIONAL ASSOCIATION OF MORTGAGE BROKRES: The biggest problem is, it's fraud. It's putting people into credit grades that they do not deserve, often giving people access to mortgage credit who would not have access at all.

WILLIS: (voice-over): And while the Federal Trade Commission would not comment on ICB in particular, it indicated the company engaging in this business could be violating the Federal Credit Repair Organizations Act. ICB says it's not breaking any laws.

Fair Isaac, the company that developed the FICO credit score, says it will stop letting such users get a boost from the main user's credit cards. ICB says it will continue to find ways around the credit scoring rules so it can help its clients. And Alipio Estruch is so happy with the company, he hopes to someday work for them.

(END VIDEOTAPE)

WILLIS: Joining us now are John Coates of Instant Credit Builders. And Bob Moulton of Americana Mortgage. Welcome to you both. Now before we get started. I just have to show you some numbers we came up with. So you can see why people would want to do this. For example, let's take somebody who had an original credit score of 580. Not a good score. OK. Let's say they wanted to have maybe 180 extra points, a new credit score of 760, that they're willing to pay $3,000 to get to a firm like Instant Credit Builders.

Now, if they were getting a $300,000 mortgage, each and every month they would save $541 on that mortgage because of their better credit score. That means that this would pay for itself in approximately six months.

Now, John, I want you to tell me what's wrong with this picture? This sounds too good to be true.

COATES: Well, it sounds too good to be true because we're finally able to throw the American people a rope to help them climb out of the hole, basically the hole that they were thrown into, you know, through terrible practices like subprime lending, predatory lending practices.

You know, when we look at the facts, there's 250,000 homes that are in pre-foreclosure right now in our country. This is literally disaster on the scale of Hurricane Katrina every 90 days!

(CROSSTALK)

WILLIS: All right. John, so you're saying that your program will actually help people out, will help them get the credit that they need and deserve. Boy, Bob, I bet you've got some objections.

BOB MOULTON, AMERICANA MORTGAGE GROUP: Yes. I see a couple of problems here, Gerri. The first problem I see is that these people are buying credit scores. And historically, we always underwrite files based on that person's ability to make payments on car loans, student loans, mortgages, and credit cards.

If they're buying a credit score, how are we really to know that they have the ability to make their mortgage payment? Secondly...

WILLIS: Well, wait a minute, let's take these one at a time. John, jump in here. So what's a -- you know, come on. I mean, the bankers don't know what they're dealing with. It's a black box for them. People are buying scores. They don't know if they're good risks or poor risks.

COATES: But see, this is nothing new. It has been under the umbrella of creative financing for decades now. Now that we're...

WILLIS: What do you mean?

COATES: Well, people have been adding people as authorized users, mainly it was head mortgage lending professionals that would help clients get into their homes. This is something that's...

(CROSSTALK)

WILLIS: Or, John, mom and dad did it for the kids. So what do you say to that, Bob? That, you know, come on, this kind of practice has been going on for a while.

MOULTON: Well, mom and dad helping the kids or a spouse helping a significant other is one story in itself. These are people who are buying other people's credit card history, and they may not even know that borrower. They have no relationship with that particular person. That person is doing it for the money. And the person who was trying to help his credit score is trying to help something that he hasn't paid on time.

And if credit isn't paid because of medical, marital, or job loss, that's one thing that we understand. But going out and buying a credit score and having underwriters look at that credit score that is not theirs, I think is a potential problem, increasing the problem that we've already seen in subprime.

WILLIS: All right. OK. So, John, you've got to tell me here, is there any risk that somebody's going to steal my identity whether I'm the person buying the credit score or the one selling it?

COATES: Well, the person that buys the credit enhancement to their file, they never get a credit card, and they don't know the person who is basically invested to help them raise their credit. So there is -- we are the person that's in the middle there, and as I had mentioned earlier, there are definitely contractual agreements between us, the card holders, and everyone involved.

And everyone is on the same page there, and it's a business. And just like you would use your credit card at any business...

(CROSSTALK)

WILLIS: Is there a risk to the person who's buying the credit?

COATES: You know, absolutely not. Our system is very solid.

WILLIS: OK.

COATES: And we think we protect people very well. Everyone involved.

WILLIS: Well, John, I want to thank you for joining me. Bob, thanks for joining us as well. Great conversation, guys. Thanks a bunch.

COATES: You're welcome.

WILLIS: Coming up on OPEN HOUSE, we'll tell you about one proposal to keep a close eye on the people who handle your money.

Then, why getting top for your home, well, it all starts at the curb.

And we hit the racetrack at full speed with one a NASCAR star.

But, first, keeping your team safe behind the wheel in your "Tip of the Day."

(BEGIN VIDEOTAPE)

WILLIS (voice-over): Convertible, SUV, sports car. Before you know it, your child will be driving, and safety should be priority number one. Read up on crash test ratings and other safety features on aaa.com.

ROBERT SINCLAIR, AAA: Newer vehicles tend to have superior safety equipment, antilock brakes, crumple zones with electronic stability control.

WILLIS: Don't forget to get an independent mechanic to inspect a used car for reliability before you buy. And check to see if the warranty is still in place. And if not, look into purchasing one.

And shop around for car insurance. Rates can be as high as 5,000 for new drivers. But many companies offer discounts such as good grade rewards if they maintain a certain average.

I'm Gerri Willis, and that's your "Tip of the Day."

(END VIDEOTAPE)

(COMMERCIAL BREAK)

WILLIS: Check out last week's mortgage numbers. Rates jumped to their highest levels in nearly a year. Now the Mortgage Bankers Association said the average 30-year fixed rate loan climbed to 6.61 percent, and that is the highest level since July of last year.

Keep in mind here, just four years ago, rates were at 5 percent. I spoke to Doug Duncan, the chief economist for the Mortgage Bankers Association. The good news here, he told me he expects mortgage rates to remain steady through the end of the year between 6.55 and 6.75 percent. That's the good news.

This week we heard about a new idea, though, to protect your money. Elizabeth Warren is a Harvard Law professor and a longtime consumer advocate. She is calling for a financial product safety commission that will protect you from unsafe financial products just like the Consumer Products Safety Commission protects you from unsafe toasters and toys.

Welcome, Elizabeth. Good to see you.

ELIZABETH WARREN, PROF., HARVARD LAW SCHOOL: Good to see you.

WILLIS: Now, you know, I thought about this for the last couple of days, the idea of a whole new regulatory body, and we've certainly covered all of these toxic loans out there that people have taken out the last few years. Well, what have we got? We've got the SEC, the FDIC, maybe five federal regulatory bodies, state regulators. Shouldn't these guys be doing their job instead of creating a whole new regulatory regime?

WARREN: Well, you know, that's part of the problem. We have too many regulators, but none of them have as their principal focus safety for the consumer. We have overlapping and multiple regulations, but they are aimed toward profitability for the banks, protecting the banks. We need somebody on the consumer's side here.

WILLIS: Well, is there any guarantee that any kind of commission is actually going to get that job done? I think you've got to ask yourself, so many regulators out there already, how are these guys getting away with the kind of stuff they've been pulling?

WARREN: Well, the current statutes tell the regulators to watch out, to make sure that the banks remain safe. What we need is a set of regulators who are told to watch out for the consumers, the way we have a regulatory commission that watches out for the consumers to make sure we don't have exploding toasters and collapsing car seats.

It's really a question of what Congress tells the regulators to do. Right now we don't have regulators who are out there looking out for the consumers, and I think our recent experience in the mortgage market and the credit card markets and the payday loan markets make that pretty clear.

WILLIS: Elizabeth, I've talked to some of these folks in the industry, and they say they're doing the best job they can to come up with new products to help people out there. And even some of the toxic loans that we talk about are decent products for some people. So how do you keep the innovation coming and yet still regulate the industry?

WARREN: Well, once again, go back to look at what has happened with ordinary physical products. We've had lots of innovation in toasters, lots of innovation in car seats, lots of innovation in cars and other kinds of products. But the innovations have been things that helped consumers, not things that landed consumers in lots more trouble. What safety regulation does is it builds in floors, and that helps markets be more competitive.

It means that people who issue mortgages don't have to worry that their profitability is being undercut by someone who's willing to put out a product that has, let's say, a 1 in 5 chance of landing a family in foreclosure.

WILLIS: Elizabeth, interesting idea. We'll be following up on it. And thanks so much for being with us to explain it today.

Coming up next on OPEN HOUSE, get out that pen and paper. Learn how to boost the value of your home without spending big bucks.

And the inside track on life on the road for one NASCAR dad.

(COMMERCIAL BREAK) WILLIS: First impressions count, especially when you're looking to buy that dream home. But whether you're buying or you're selling, your home's curb appeal can sometimes make or break the deal. We took a ride recently to Tennafly (ph), New Jersey, with landscaping guru Jason Cameron to check out one good-looking home.

(BEGIN VIDEOTAPE)

WILLIS: So, Jason.

JASON CAMERON, DIY'S "DESPERATE LANDSCAPES: Yes.

WILLIS: This is the view. This the view that you would see on the Internet if this house was on the market. This is the view that you would see coming to the open house. This is a money shot right here. So what do you think?

CAMERON: It is a money shot. And for a possible buyer looking at this house, the first thing that I look at is how well maintained the landscape is. And obviously this is very well-maintained. And the thing about landscapes you want to keep in mind is, you don't want to overdo it. And you don't want to take away from what it is that you're looking to buy, which is the home.

So as the person that owns the house, it's all about the house. And you want the landscape not to overpower it, but to enrich it.

WILLIS: But to point to it, right?

CAMERON: Point to it.

WILLIS: Point to it. I can just tell you, though, look at this driveway, because I think the driveway is awesome.

CAMERON: Yes, it is. Very nice.

WILLIS: You know, this can be a real distraction from the house itself. But they've done a nice job with this, right?

CAMERON: They've done a beautiful job. I mean, this not only looks great, but it adds a ton of value to your house. But a job like this for a do-it-yourselfer is a little much. But a smaller job you can do it. You've got to remember too, with pavers, is that it's very -- it's $10 to $15 a square foot to have it installed. It's very expensive. And 90 percent of that is labor.

WILLIS: You know, one other thing, I like the way these bushes frame the doorway. They're bringing you right to the front door.

CAMERON: We're on the same page, you and I.

WILLIS: I think so. Maybe.

CAMERON: Because that caught my eye as well. And when you have a prominent space like this, I mean, this is your focal point. This is what people are going to look at as the front door to the entrance. They did a really good job framing it in with these two evergreens on each side.

So it's a very prominent area. So you want to -- basically anchoring the front door.

WILLIS: So, Jason, let's check out the backyard.

CAMERON: Yes, let's do.

WILLIS: Wow, the grass is gorgeous. They've really worked hard on it.

CAMERON: It's a beautiful grass.

WILLIS: But I have to ask you this question, there's a lot going on back here. There's a lot of tschotkes.

CAMERON: Yes. There's a lot to like...

WILLIS: What do you think of that?

CAMERON: Yes, there's a lot to like about this. But that would be one of my criticisms is that there's a little bit too much going on. I mean, there's a lot for the eye to take in. There's a lot of different types of containers...

WILLIS: Urns and pots.

CAMERON: Urns and -- but it really is a matter of preference. Now obviously, the homeowner really likes this stuff. And, again, it's their backyard. But for resale purpose, you might want to simplify things and not have so much going on.

WILLIS: What about the hostas? I love these hostas. They're huge.

CAMERON: Again, it's another texture element. So the hostas, the hydrangeas, bushes are great, like boxwoods, and rhododendrons like you like, those are flowering bushes, and the evergreens are the -- you know the evergreen bushes. So a lot of different elements going on. But they're all low maintenance, and that's really important, because you don't want to spend a lot of time maintaining a landscape.

WILLIS: OK. So short list, action plan.

CAMERON: Action plan.

WILLIS: Tip number one, look at your house as if for the first time.

CAMERON: Right.

WILLIS: Second, don't be afraid to do it yourself.

CAMERON: Right.

WILLIS: And, three, don't overbuy.

CAMERON: Don't overbuy. Don't overdo it. Don't overwhelm your house. Keep it simple. Again, planting like plants together, layering, getting some color and some year-round color. So you want short-term color, which is annuals and perennials, and you want year- round color, which is bushes, evergreens, and hydrangeas.

WILLIS: OK. I think I've got it.

CAMERON: You got it?

(END VIDEOTAPE)

WILLIS: Our thanks to Jason Cameron for helping you us out. As always, if you have an idea for a "Weekend Project," send us an e-mail to openhouse@cnn.com. And for more information on home improvement projects, along with tips and a quiz, log on to cnn.com/spring.

Up next, gentlemen, start your engines. Life on the road with one NASCAR dad. But first, your "Local Lowdown."

(BEGIN VIDEOTAPE)

WILLIS (voice-over): OKC is a sprawling city situated right in the heart of Tornado Alley. Some 500,000 people live there. Median family income sits at about $50,000, slightly below the national average of $56,000. But the median home sales price is only about $100,000, less than two-thirds the national average, and you can thank Oklahoma City for the world's first parking meter, installed July 16th, 1935.

That's your "Local Lowdown."

(END VIDEOTAPE)

(COMMERCIAL BREAK)

GRAPHIC: "There are 66.3 (ph) million fathers in the United States."

WILLIS: And that is a whole lot of kids. Ladies and gentlemen, fasten your seat belts. We're taking you on to the racetrack and into the fast family life of one NASCAE star.

(BEGIN VIDEOTAPE)

WILLIS (voice-over): Meet the Nemecheks (ph), a team on and off the racetrack. With 38 races a year, this NASCAR family is living life in the fast lane.

JOE NEMECHEK, NASCAR DRIVER: Life on the road is there's never a dull moment. We're gone away quite a bit. I'm very fortunate to be able to have my family with me most of the time.

WILLIS: The family, that's Andrea.

ANDREA NEMECHEK, NASCAR MOM: Say hold on. Let's go.

WILLIS: Blair (ph), Kennedy (ph), and John Hunter (ph). Oh, and the family puppy, of course. And then there's Joe's other family, his crew.

J. NEMECHEK: How's your mom doing, buddy?

When you spend that much time with them, they are, they're just like family. My crew chief, Ryan Pemberton, and his family, we spend a lot of time together on the road, along with the other crews, the crew members. Everybody's like a family.

WILLIS: It's a close knit community, literally. Motor homes parked side by side become homes away from home. Competitors on race day, neighbors after hours.

So just out of curiosity, we asked Joe who he would turn to for that proverbial cup of sugar.

J. NEMECHEK: it doesn't matter. It doesn't matter at all.

WILLIS: We asked Jeff Gordon if he'd help out.

JEFF GORDON, NASCAR DRIVER: Sure, why not? I feel like a pretty giving person. So if somebody needed something, I'd be willing to help them out.

WILLIS: Willing to help out are the sport's chaperone too, like the MRO, making sure that even the smallest members of the race car family enjoy their time on the track.

A. NEMECHEK: They have an area for the kids to play. They serve food. They have a wonderful playground, you know. They just -- they make you feel like you're at home. And they make it so you don't have to go off the premises to do anything if you don't want to.

WILLIS: As far as the son's career track, this 9-year-old is following suit, strategizing with the team, tracking lap times. He's just another member of the crew, only smaller.

But the season is long, and the family can't always go on the road, which can be tough. But there's one -- well, three things that keep him going.

J. NEMECHEK: What gets me through it? I guess these little guys right here. You got to look back at what's important in life, and family. Family is the number one thing in life, and you got to take care of your kids. You know, my goals, I want to run well, and I want my family to be healthy. That's the two main things.

WILLIS: With two well-oiled teams supporting him, Joe Nemechek has no plans to slow down any time soon.

(END VIDEOTAPE)

WILLIS: What a great family. Well, father may know best most of the time. But for all those dads out there who are still in need of financial advice once in a while, we have you covered.

Now, we all know how expensive college is, but you don't want to go raiding your nest egg to pay for junior's college. You're going to lose out on all that compound interest. And you'll have to pay penalties if you withdraw money from your 401(k) or IRA if you're not yet 59 1/2 years old.

Remember, you -- your kid can always borrow money to pay for college, but you can't borrow money to retire. And if you finally want to stop being your child's personal ATM machine, here are some Web sites to note so that, well, junior can start earning his own money. There's snagajob.com, and teens4hire.com.

As always, we thank you for spending part of your Saturday with us. OPEN HOUSE will be back next week right here on CNN. And you can catch us on HEADLINE NEWS every Saturday and Sunday at 5:30 p.m. Eastern time.

Don't go anywhere. Your top stories are next in the CNN "NEWSROOM." Have a great weekend.

TO ORDER A VIDEO OF THIS TRANSCRIPT, PLEASE CALL 800-CNN-NEWS OR USE OUR SECURE ONLINE ORDER FORM LOCATED AT www.voxant.com]]> no_email@example.com (john) http://www.undergroundfinancial.com/modules.php?name=Forums&file=viewtopic&p=52#52 http://www.undergroundfinancial.com/modules.php?name=Forums&file=viewtopic&p=51#51

The new medFICO score, being designed with the help of credit industry giant Fair Isaac Corp., could debut as early as this summer in some hospitals. Healthcare Analytics, a Waltham, Mass., health technology firm, is developing the score. It is backed by funding from Fair Isaac, of Minneapolis; Dallas-based Tenet Healthcare Corp.; and venture capital firm North Bridge Venture Partners, also based in Wal-tham. Each kicked in $10 million for the project.


Wealth-based care?


The score is already raising questions from consumer advocacy groups that fear it will be checked before patients are treated.


People with low medical credit scores could receive lower-quality care than those with a healthy medFICO, they argue.


"How much assurance do I have that they're not going to look at this medFICO first, before they decide whether to treat or not?" asked Linda Foley of the Identity Theft Resource Center in San Diego.


That will not happen, says Stephen Farber, chairman and chief executive of Healthcare Analytics. Hospitals will check the score, which will be based on the patient's medical bill payment history, only after the patient is discharged, he said.



"We only come into play once the patient has been treated and discharged, and the bill already exists," said Farber, who has visited hospital executives nationwide over the last six months to sell the concept. "We just help figure out what sort of relief a hospital should grant the patient."


Only billing data


Hospitals and other caregivers already can tap into regular credit scores -- even without the patient's permission -- but those are not necessarily a good indication of whether a patient will pay a medical bill, Farber says. Such credit scores are based on voluntary purchases, such as a car. Health care debt is largely involuntary.


Under the Fair Credit Reporting Act, hospitals and doctors are allowed to report health care debts to credit reporting agencies, but they cannot indicate what they were for. "They have to do it in a way that there will be no way a person looking at the information would be able to guess what they were treated for," said Frank Dorman, spokesman for the U.S. Federal Trade Commission.


The proposed medFICO score would be legal as long as it only includes billing data. And unlike a standard report, which only lists late medical bills, the medFICO score would reflect a history of on-time payments.


Uncollectible write-offs.


To develop its scoring system, Healthcare Analytics is collecting patient billing data from hospital systems with a combined $100 billion in annual net revenue.


Tenet executives say the scoring system could help them decide whether a given patient can pay his or her bill or if they should just write it off as uncollectible, or a "bad debt" in industry lingo.


Without a way to gauge the likelihood that patients will pay their bills, hospitals cannot comfortably invest in new projects or accurately balance expenses against revenue.


Tenet, the nation's third largest hospital system, with 63 hospitals and medical centers, had $433 million in bad debt through this year's third quarter. Seventy-five percent of that bad debt was from uninsured patients and 25 percent from those with deductibles they couldn't, or wouldn't, pay, according to Steve Mooney, Tenet's senior vice president of patient financial services. Foley asked. "If he had a low score, would he have gotten the same type of care that he got last night?"


Mooney, of Tenet Healthcare, says the hospital business has changed over the past 30 years to take on characteristics of the retail industry. With patients expected to pay a larger share and do more comparison shopping, they soon will be able to purchase health care much like an automobile, he said.


Pamela Dixon, executive director of the World Privacy Forum, a consumer advocacy group, isn't impressed. "I don't like it; I don't like it at all. These are people's lives we're talking about. This isn't some car.]]> no_email@example.com (john) http://www.undergroundfinancial.com/modules.php?name=Forums&file=viewtopic&p=51#51