As you may know, Debt Management Guys offers both debt management credit counseling services as well as debt settlement to help people get out of debt and back into financial independence.

However, there is now pending legislation whose sole purpose is to eliminate the debt settlement industry. This will force debt settlement companies to have zero incentive to help people settle their debts and force more people into bankruptcy which ruins your credit score far worse than credit counseling or debt settlement.

A few days ago? Senator Schumer (D-NY) submitted his (and Senator McCaskill?s) debt settlement legislation (S.3264) as an amendment to the Restoring American Financial Stability (RAFS) Act of 2010, the financial reform bill now making its way through the Senate. The amendment has been given the designation Amendment No. 3960.

A preliminary review of the Amendment reveals that the most damaging provisions of the bill – those relating to fee regulation remained intact despite recommended changes. Monthly fees in any amount remain prohibited, and the percentage of savings was revised insignificantly, from 5% to 10%, which is of course still untenable. More specifically, if proposed Amendment 3960 is passed through the RAFS Act of 2010, debt settlement providers will only be allowed to charge (a) a $50 set up fee (fully refundable to consumers if programs are canceled inside three months; 50% refundable if cancellations occur thereafter prior to settlement), and (b) 10% of the amount consumers are saved, and only then on settlement and payment by creditors.

Additionally, if 3960 is passed, companies that are able to stay in business, if any, will face unlimited punitive damages in civil causes of action. This means juries will be free to impose limitless amounts of damages on companies in their discretion.

Finally, although debt settlement providers shall not be allowed to charge any monthly fees, providers are required under 3960 to create and provide monthly statements for all consumers enrolled in their programs. These free monthly statements must include ?account balances, fees paid, settlements completed, remaining debts, and any other term considered appropriate by the Federal Trade Commission.

In short, this bill, developed in secret over the last 9 months and now being slipped into other legislation without even a hearing is designed with one purpose in mind: to eliminate the debt settlement industry. This is an extreme and ridiculous law.

What we need from you, is for you to step up your calls to Senators urging them to oppose Schumer-McCaskill Amendment 3960. If you have consumers who want others to have the same access to debt settlement programs that they have had, and if they wish to contact Senators, as well, we need their input delivered to Senators, as well.

The next few days will be critical to this effort, so keep up the great work. It only takes 5 minutes to call each of these senator offices and express your disapproval of this ridiculous law that would crush the industry into not being able to help people settle their debts like they have been for years and years. Not only that, but the banks historically earn more money from debt settlement than bankruptcy.

Steve’s personal life experience led him to bankruptcy which is a scenario I consider as the absolute last option since it wrecks your credit for ten years in most cases, not to mention you have to jump through all sorts of means testing hoops based on income and state guidelines. Hiring an bankruptcy attorney in most cases will stick youin a Chapter 13 scenario where you have to repay quite a bit of your debts back and relinquish control of your assets to the courts. You also will have an even more difficult time in finding a job with a bankruptcy on your credit report for ten long years instead of 7 years if you did a debt settlement or a credit counseling program that does not affect your credit score since you’re truly trying to resolve your debts.

Steve misinterpreted my quote in a press release stating “As of October 17, 2005 all Americans seeking bankruptcy must complete a credit counseling program. The problem with this is that so many people are unable to afford the monthly payments in a credit counseling program, and must seek debt settlement.”

I never implied that seeking bankruptcy and completing an education course delivered typically by credit counseling groups in order to qualify for bankruptcy meant you enroll in debt settlement.  Duh! That class is required 180 days prior to acceptance in a bankruptcy. I never said the class forces someone to enroll in debt settlement. My key point of the press release was that many people are unable to afford the payment in a credit counseling program, and thus must seek debt settlement.  Steve’s quick advice is to tell everyone to jump into bankruptcy because it worked for him. I find that foolish.  If you could pay back your debts in 4 years with interest rates between 0-9%, why wouldn’t you do so in a credit counseling program? It doesn’t crush your credit score if you pay back your full debt on time and in full. 35% of your credit score is measured by making payments on time, and 30% is measured by your debt to income.

Should we all just give up and jump into bankruptcy? Ridiculous. Remind me not to be on a sinking boat with you Steve.  If our clients cannot afford the credit counseling payment, the debt settlement payments are half of that.  For example, on a $50,000 credit card debt, your payments are around $1,100 to $1,500 a month.  If your interest rates are above 18% and you are making minimum payments, you will never paid that debt off. However, depending upon the creditor, we have arrangements with banks like Advanta, First Premier, Tiresplus, and Firestone to drop your rates to 0% interest as long as you make your payments on time.  The payoff time is 4 years or less in most cases.  If you can’t afford that payment, your payments could be as low as $641 over 48 months and you would save 30-40% of the debt amount since we have over 200 attorneys nationwide at our disposal.

Not to mention debt settlement historically yields a higher return to the creditors . (See Briesch Whitepapers and Weinstein Whitepaper)  Debt settlement certainly yields more money to banks than than bankruptcies or judgments, which is why they work for both parties not only to heal our economy but more importantly, help our clients resolve their debts and send their credit score back up. I’ve personally done a debt settlement and I’m happy to say my credit score isn’t trashed because I listened to some poor advice from the quick yet devastating bankruptcy advice from Steve Rhode.

Yet Steve is more than happy to capitalize off selling leads off his website to debt management companies like Cambridge Credit Counseling , which was  sued for violating one of Illinois’s latest state law revisions on limiting debt management upfront fees.  Steve to me is just a wannabe Dave Ramsey who’s hoping his balding appearance and sob story about bankruptcy will capture audiences and more importantly, LEADS so he can then sell to make money off you.  (Personally I like Dave Ramsey and most of his advice in regards to financial discipline but I don’t believe he understands there are some legitimate credit counseling and debt settlement companies out there, helping people get out of debt.)  The entire first half of his Steve Rhode’s website is riddled with Google Adwords links that pay him everytime you click them like some worthless spam site so he can earn money every time you click them.  (We have them too but they don’t cover the entire first half of the page; we find that annoying.)

Funny Steve. If the debt settlement companies are so bad, why don’t you just take down your referral form  Isn’t supporting them hypocritical?? You of all people should understand the demand and need for people to leverage income in this recession while providing a valuable service for their clients through debt management and debt settlement services if they are indeed a fit for the programs.  Our press release was written to mortgage brokers who are hurting in this economy and don’t know what to do with their dead leads.

Affiliates don’t need special licensing at this point in time to refer business to debt management companies in most states but the laws are changing since debt management has been the wild west.  Several states are beginning to require licensing to even talk to their residents, but not all.  South Carolina, Minnesota, and Illinois are a few of the states requiring even companys that refer business to credit counseling companies to be licensed and registered with the state.

We welcome debt management laws in regards to requiring educational courses like the few states currently do in this wonderful nation.  Steve, I doubt you’re licensed or much less know about the new state laws.

As for your idiotic remark about the attorney general, I’ve met him. He’s a nice guy.  And to clarify, we are not a debt settlement company.  We train and teach affiliates the proper way to counsel and qualify people for debt management and settlement programs so they can make money just like you’re trying to do so they can focus on their core business. DebtManagementGuys.com utilizes over 200 attorneys nationwide ensuring only attorneys approve our clients truly belong in debt settlement programs, and if they truly are not a fit, guess what? They recommend bankruptcy if there is a true financial hardship that debt settlement cannot offer.  No one can provide debt settlement services in Georgia unless they are attorneys which is why we ONLY use attorneys.

We’re also proud to say that our attorneys are averaging a 30% settlement on our client’s debts, and only went over 40% twice last year, which is 12% below the industry average. Credit Solutions of Texas boasts over 100,000 clients and their average is 41.6%.  As for our debt management credit counseling clients, our processor maintains an 87% retention rate and actually purchases clients from debt management companies that are shut down due to noncompliance since they have to be serviced by someone. They also have an A rating with the BBB.  So no Steve, we won’t be shut down because we let an A rated processor do what they do best as they are licensed and bonded in every state. We speak to every client that is referred to us to make sure they truly belong in the proper program rather than hustle them off into a program they don’t need.

Steve, perhaps you should take a basic phonics course and not skim our press releases, but rather read the entire article.  With over $395,000,000 in delinquent credit card debt, this country needs help from ethical debt management providers who truly care about their clients, and thats exactly why DebtManagementGuys.com was created.  People need jobs and helping people get out of debt, just like you’re trying to do, is a very rewarding career path. At the end of the day, we’re held accountable for our actions which is why we do everything by the book.

Perhaps if you spent more time on helping people and less time talking crap about things you don’t understand, you might learn something.  As for us, wesleep great at night because our clients are truly helped. Maybe you can take some of your adwords revenue and seek hair replacement therapy,  Dr. Cole here in Atlanta is an excellent hair replacement surgeon with his revolutionary Follicular Isolation technique. We wouldn’t mind throwing a few cents in your direction.

Consider the lie in their statement, ” We don’t work with debt settlement companies, but we’ll offer you a settlement.”? Exactly! They want you to try to negotiate with them so they can get more money out of you, or you could use our seasoned attorneys to achieve a much lower settlement. The choice is yours.

In the bank’s defense credit cards are their highest risk being? unsecured by any property or assets, but saying they do not agree to settle for less is just downright dishonest. We thought we would share a few settlement letters from different creditors who have indeed settled for less.

The following settlement letters are from creditors such as Bank of America, First National Bank of Omaha, Capital One, Washington Mutual, Discover, and more. If you have been jerked around by your bank’s? service fees, interest rates, and never seem to see that credit card balance go down, give us a call us today for a free, no obligation quote to find out what you qualify for. At the very least you can walk away being a little smarter about the industry. See for yourself below.

Chase Debt Settlement Acceptance Letter

50% Debt Settlement with First National Bank of Omaha

50% Debt Settlement Savings with Walmart

59 % Savings With Household Bank (HSBC)

60 % Savings With Capital One

60 % Savings Debt Settlement With Washington Mutual WAMU

80% Savings with Debt Settlement From Bank of America

Discover Settles for 10% of Original Balance

Call 678.561.DEBT today to eliminate your debt and sleep better at night. We’ll put you on a payment that you can afford rather than have the courts or banks tell you what to pay, and not wreck your credit like a bankruptcy can.? You are paying your creditors back in this program, but on your terms, not theirs!

This is a very popular question we receive regarding your credit score. Its important to know how your credit score is calculated to explain this answer in detail so let’s dig in.

• 35% of your credit score is measured by making payments on time
• 30% of your credit score is measured by your dti (debt to income) – the more debt you have the lower your score

The rest of your credit score is measured by how many accounts you have open, how long they have been open, and other factors.? According to MyFico.com, credit counseling does not hurt your credit score. Debt management programs have an enrollment fee and its important to know that the first payment does not go toward your creditors. Its not until the second payment drafts out that the funds are distributors to your creditors as it typically takes 30 days to set everything up for your lower interest rate, which takes anywhere from 1 to 3 months of payments on time before it kicks in, depending upon the creditor.

Debt settlement on the other hand does not make payments regularly to your creditors, but rather makes payment into a settlement account where a lump sum grows.? The lump sum allows? the law firm or yourself to have better negotiating power to offer a settlement amount.? Creditors can sue you if they like but its costly for them and counterproductive. You can also owe a tax liability for the amount of money you did not have to pay. If your tax rate is 15%, $5,000 of forgiven debt will carry a $750 tax liability. However, you can petition? a waiver from the liability if your assets are lower than your liabilities by filling out form 932

To find out more about the pros and cons of debt management and settlement services, visit Debt Management Guys .com to speak to a live representative by clicking the Call me button, entering your phone number and hitting connect. Or you can simply fill out the form to request more information, or by simply dialing 678.561.DEBT today. You have nothing to lose and only options to gain.

This is an interesting example of how creditors try to influence their cardholders to PAY UP IN FULL on their credit card debt. As more and more people enroll their credit cards into debt settlement programs, more and more creditors will be combating the program, and attempting to collect the debts directly, via their “in-house settlement center”, or by referring them to a “credit counseling center”.

As a recent example (view this settlement offer by Chase), Chase has been sending out letters to their customers notifying them that they have been contacted and notified, that they are being represented by a debt settlement company in connection to their Chase account. The bold title of their letter states, “Chase doesn’t deal with debt settlement companies.” Attached, you will also find a settlement from Chase, as recent as today, and for 25% of the debt amount!

The letter does go on and suggest, and ask, that the client does in fact contact Chase directly to learn more about their “interest rate reduction” programs, as well as get a “free referral to an accredited, non-profit credit counseling organization.”(Credit card companies started credit counseling companies like CCCS and CCCS receives compensation from them.)

Let this serve as an education tool, to help make you the client aware of these letters you may receive, as we’re all very aware Chase isn’t the only creditor sending these letters out. Knowing what to expect from creditors and their fear tactics will enable you to successfully complete your debt settlement program so you can reap the rewards of payments you can afford to pay.

By knowing about fear tactic letters to try and get you to continue making high interest payments to them, or their majority owned counseling center, will allow you to stay the course to repairing your financial future.

Creditor will do, say and write just about anything they can to potentially get your hard earned money, each and every month…interest and all, so you can see why they don’t like debt settlement alternatives, but they eventually agree to lowered settlements, and they have been doing so for years, as in the case of this 25% settlement offer.

To find out what you qualify for, call 678.561.DEBT (3328) or visit http://www.debtmanagementguys.com and fill out the form to be contacted by one of our representatives.

(Don’t forget you can click the “CALL ME” button to be connected with a live representative, after entering your name, phone number, and the connect button.”)

Debt Management Guys can counsel you on debt management and debt settlement programs tailored to your state and financial scenario.? Currently debt settlement is very high in Rancho Santa Margarita, CA, Phoenix, Arizona, and Miami, Florida, and we can assist consumers in 47 states.
To find out what you can settle for in a customized payment that you can afford, call? 678.561.DEBT or visit our homepage to click the call me button to have us connect you with a live representative toll free.

Simply click call me twice on the home page, and enter your name phone number, and don’t forget to? hit the CONNECT button.? With rates as low as 0%, we have different options for your credit cards, personal loans, medical bills, collections, and judgments over 6 months old.

Wondering how a debt management plan works? Its easier than you think. Your credit card company won’t tell you that you can get a lower interest rate in a debt management plan because they want you to pay the full balance back at higher interest rates. If you can afford the payments but your interest rate is too high, you may want to consider a dmp? if contacting the bank has caused little to no success. However, you must know that enrolling your credit card balances in a debt management plan requires your cards to be closed, meaning you simply cannot charge on that card until the balances are paid off. The important thing to keep in mind is maintaining timely payments since 35% of your credit score is measured by not missing payments. Also, in a dmp you can pay more than the recommended balance as there is no prepayment penalty.

What Might Your Interest? Rates Drop To?

(Keep in mind these are subject to change at any time)

Capital One 7.4%

Bank of America 9.0%

Chase 6% or 10% depending upon the balance

Juniper? now a case by case scenario but was previously 5.9%

HSBC (Household Bank) 9%

Wells Fargo 7.3%

American Express 7.90%

FIA Card Services 15.90%

Wells Fargo Card Services 7.30%

Citgo/Citibank 9.90%

Discover Card 6.99%

Macys-All Divisions 8.00%

Bank One – First USA 6.00%

Direct Merchants Bank 9%

Fashion Bug * 8.00%

HSBC/Discover 9.90%

First Premier Bank 0.00%

First National Bank of Omaha 9.90%

Goody’s/WFNNB 10.00%

Providian National Bank 10.00%

and many more.

Keep in mind that these rates are subject to change at any time by the creditors. Some may be higher, some may be lower. The only way to find out what you qualify for is by contacting us today.

Now, if you are currently more than two months behind on your payments, then your best option may be a debt settlement program

To find out what you can qualify for, contact the Debt Management Guys today at
1.800.442.8004 ext 100 today.

Here are links to the SAME video on different video networks where Michael Hart explains some of the key differences.

Daily Motion Debt Management Guys Video

Yahoo Debt Management Guys Video

Myspace Debt Management Guys video

Blip Tv Debt Management Guys Video

Veoh Debt Management Guys Video

Again, these are all the SAME video on different networks. If you are currently on any of these social networks, don’t forget to add our rss feed or suscribe to our videos. We hope you will learn something from them.

As always, if you would like to speak to one of our live representatives, simply visit our homepage at? http://www.debtmanagementguys.com and click the “call me” button to enter your phone number to be connected with a live person.

Understanding how a credit score is calculated is key to understanding the debt management and debt settlement process.

Your credit score is a number generated by a mathematical algorithm — a formula — based on information in your credit report, compared to information on hundreds? of millions of other people. The resulting number is an? accurate prediction of how likely you are to pay your bills.

Credit scores are used extensively, and if you’ve gotten a mortgage, a car loan, a credit card or auto insurance, the rate you received was directly related to your credit score. The higher the number, the better you look to lenders. People with the highest scores get the lowest interest rates generally but not always for credit cards.

What Are The Scoring Categories?

Lenders can use one of three credit-scoring models to determine if you are creditworthy. Different models can produce different scores since there are three credit bureaus: Equifax, Experian, and TransUnion. Different lenders use some scoring models more than others. The FICO score is probably the most popular scoring method.

Its scale runs from 300 to 850. If you have your credit pulled and you receive a zero, its because you probably don’t have at least three credit lines or “trade lines” open that have not been open for at least a year. Credit lines can be a credit card, car loan, personal loan, phone bill, and many other things. The majority of people will have scores between 580 and 800. A score of 720 or higher will get you the most favorable interest rates on a mortgage, according to data from Fair Isaac Corp., a California-based company that developed the first credit score as well as the FICO score.

Fair Isaac reports that the American public’s credit scores break out along these lines:

Currently, each of the three major credit bureaus uses their own version of the FICO scoring method — Equifax has the BEACON score, Experian has the Experian/Fair Isaac Risk Model and TransUnion has the EMPIRICA score. The three versions can come up with varying scores because they use different algorithms. (Variance can also occur because of differences in data contained in different credit reports.)

That could change, depending on whether a new credit-scoring model catches on. It’s called the VantageScore.?Equifax, Experian and TransUnion collaborated on its development and will all use the same algorithm to compute the score. Consumers can order their VantageScores online for a free trial. Its scoring range runs from 501 to 990 with a corresponding letter grade from A to F. So, a score of 501 to 600 would receive an F, while a score of 901 to 990 would receive an A. Just like in school, A is the best grade you can get.

What’s so important?

No matter which scoring model lenders use, it pays to have a great credit score. Your credit score affects whether you get credit or not, and how high your interest rate will be. A better score can lower your interest rate, and ensure you get hired for a job as more and more employers are checking credit as measure of a person’s caliber.

The difference in the interest rates offered to a person with a score of 520 and a person with a 720 score is 4.36 percentage points, according to Fair Isaac’s Web site. On a $100,000, 30-year mortgage, that difference would cost more than $110,325 extra in interest charges, according to Bankrate.com’s mortgage calculator. The difference in the monthly payment alone would be about $307.

Protect Your Score
If you rented an apartment, got braces, bought cell phone service, applied for a job that involved handling a lot of money, or needed to get utilities connected, there’s a good chance your score was pulled.

If you have an existing credit card, the issuer is likely to look at your credit score to decide whether to increase your credit line — or charge you a higher interest rate, according to a credit scoring study by the Consumer Federation of America and the National Credit Reporting Association.

How Your Credit Score Is Determined

Just what goes into the score? Everything in your credit report, with different kinds of information carrying differing weights, says Fair Isaac Corp. Public Affairs Manager Craig Watts. The FICO-scoring model looks at more than 20 factors in five categories. (The VantageScore relies on slightly different factors. The Bankrate feature “New Vantage credit score now online” compares the FICO score with VantageScore. )

1. How you pay your bills

(35 percent of the score)
The most important factor is how you’ve paid your bills in the past, placing the most emphasis on recent activity. Paying all your bills on time is good. Paying them late on a consistent basis is bad. Having accounts that were sent to collections is worse. Declaring bankruptcy is worst. If you are already late on your payments and have over $10,000 in credit card debt, you should get a quote for debt settlement since you have already hurt your score.

2. Amount of money you owe and the amount of available credit

(30 percent)
The second most important area is your outstanding debt — how much money you owe on credit cards, car loans, mortgages, home equity lines, etc. Also considered is the total amount of credit you have available. If you have 10 credit cards that each have $10,000 credit limits, that’s $100,000 of available credit. Statistically, people who have a lot of credit available tend to use it, which makes them a less attractive credit risk.

However, carrying a lot of debt doesn’t mean you’ll have a lower score “It doesn’t hurt nearly as much as carrying balances close to the maximum limits on your account. People who consistently max out their balances are perceived as riskier. People who never use their credit don’t have a track history. People with the highest scores use credit sparingly and keep their balances low.”

3. Length of credit history (15 percent)

The third factor is the length of your credit history. The longer you’ve had credit — particularly if it’s with the same credit issuers — the more points you get.

4. Mix of credit (10 percent)

The best scores will have a mix of both revolving credit, such as credit cards, and installment credit, such as mortgages and car loans. “Statistically, consumers with a richer variety of experiences are better credit risks,” Watts says. “They know how to handle money.”

5. New credit applications (10 percent)

The final category is your interest in new credit — how many credit applications you’re filling out. The model compensates for people who are rate shopping for the best mortgage or car loan rates. The only time shopping really hurts your score is when you have previous recent credit mishaps, such as late payments or bills sent to collections.

“Then, looking for new credit will be seen as an alarm because statistically, before people declare bankruptcy and default on everything, they look for a way out. Also, if you have a very young credit file, an inquiry can count for more than if you’ve had credit for a long time.

What doesn’t count in a score

The scoring model doesn’t look at:

* age
* race
* sex
* job or length of employment at your job
* income
* education
* marital status
* whether you’ve been turned down for credit
* length of time at your current address
* whether you own a home or rent
* information not contained in your credit report

A lender may consider all those factors when deciding whether to approve a loan application, but they aren’t part of how a FICO score is calculated,

Credit scores are not perfect

The major drawback to credit scoring is that it relies on information in your credit report, which is quite likely to contain errors. That’s why it’s critical that you check your credit reports annually, or at the very least three to six months before planning to buy a house or a car. That will give you sufficient time to correct any errors before a lender pulls your score.

The need for accuracy in credit files is one reason why it’s good for consumers to learn about credit scores. The idea is that checking up on your score and tradelines help to correct errors quickly. If consumers can check the accuracy of their own reports, they save thousands of dollars.

To check your credit report today, try a free trial with GoFreeCredit