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Hello Fellow WA Buddies!

Returning from a much-needed holiday hiatus, I'd like to talk about organizing your finances before you go live online.

Why ?

Firstly --

If you've been hit hard by the credit crunch and by economic fallout, please know that you're not alone.  That's why I'm here. I'd like to share some very helpful things I researched during my holiday break.  This post is intended to put your mind at ease and help you sleep better at night.  The information contained herein is about tackling any debts you're presently facing.

Secondly --

You have to improve your credit before you go live online. This is true because advertising requires good credit.

Before Proceeding -- bkb2012 and her enterprise cannot be held for choices you'll ultimately make. That's true because it's up to you to find out all facts before you proceed. I will state -- if you seek debt relief and you get a break from full debt repayment, the IRS could hold you liable for received income. There are loopholes to protect yourself against this recourse.  Just ask your debt repayment counselor how to avoid this problem.

And..., please know that in 1% of all debt repayment cases, some creditors will take consumers to court (through arbitration). That's not good for you. What you want is to work closely with your counselor to follow all recommended steps avoiding this reality. People get sued in court when they enroll in a repayment program but then back out..., OR share personal financial information with creditors. If you enter any debt repayment program, be careful to read all company information thoroughly. Your job is to only communicate with your counselor or attorney, referring the contact number of the debt enrollment program negotiating with any creditors on your behalf. This reality is explained in greater details if you choose debt relief or debt settlement. If you choose debt consolidation, again..., keep in mind that credit card companies own these subsidiary firms. That means they may not pass much savings along to you.

What I Cover Next --

 This blog tells you how to:

1) Restructure your existing debt so that you don't go broke...,

2) Stay afloat long enough to keep yourself in the Internet marketing game.

Here's What Has To Happen --

There are a lot of companies out there claiming to offer you debt relief.  Be careful. Some will deliver. Some won't. I spent the last 3 months researching legal firms, debt consolidation companies and debt relief programs to figure out which ones could be trusted. In short, debt consolidation companies are right-arms of creditor card companies. Their goal to is get as much money repaid from you as possible.

Not all of these services work in the same manner.

While I am NOT an attorney, I can report that legal firms bunch debts into a lump sum category. Debt relief works in the same way. Stated clearly, you want to find a service that will protect your interests as a consumer. You also want to look towards debt relief. Usually this type of service bunches several debts together for a flat fee.  15% is the going rate.  If a company wants more, look elsewhere. What you want to avoid are hidden costs associated with help hidden on the back end by some companies. 

Debt consolidation can be a nightmare if you're not clear about what types of debt settlement services exist. Here's why. We'll break down debt repayment (called restructuring) into 3 categories:

1) Debt consolidation -- takes your entire debt you're repaying, but then it tacks on the lender's interest at a partially reduced rate.

Be careful if  you pick this direction. Once you speak to a debt consolidation officer, you'll face budgeting which equals the amount of money you borrowed + some reduced interest. 

The overall result of this choice is that you still end up paying a ton of money because these companies are owned by the credit card companies themselves.

2) Debt Settlement -- takes your entire debt, but then it may usually involve some legal fees (if you pick an attorney). Most attorneys are charging consumers 50% + their enrollment fee of about $29 or so. You shouldn't pay hundreds for program enrollment.

What lawyers don't tell you is that they may take a partial cut of the monies paid back to the lender. Whether this is legal or not remains to be seen, but attorneys will tell you that you're obtaining a "win" in any settled case with a creditor if your attorney negotiates 50 cents on every dollar borrowed.

Here's why.  This information is NOT advertised by many debt settlement companies.  Many creditors are settling .30 - .40 borrowed for every dollar you've charged.  In some cases, creditors will settle for 50 cents on every dollar borrowed.

So you want to know what the attorney will charge you up front for program enrollment, usually lasting on average for 24 months - 36 months. The amount of debt you consolidate is tallied and then a monthly budget is estimated. Then the attorney tacks on his/her fee.

Be sure to find out all costs involved because you will work with a paralegal during this repayment process. Once you enroll, you only have 5 - 7 days to cancel in writing without a penalty, but you may most likely forfeit your enrollment fee.

3) Debt Relief -- this type of program involves precisely what the name states, as long as the company you choose follows all FTC regulations.

If you choose any debt consolidation, debt settlement or debt relief program, ask a ton of questions. Don't fall into any pressures to quickly enroll yourself until you've given your brain some time to process what's required. If you have to pay your bills in full for another to compare services, it's well worth the wait.

The best financial decisions are only made after all facts are had and all services are compared.

If you choose debt relief, you can usually choose a repayment plan for 24 months, 30 months, or 36 months. The repayment plan depends..., again, on how much debt you'll put into one pot.

This part is important. For any service you choose, you want to make sure that should you set up a savings account or trust fund, that account will bear your name only.  You want control over any debt payouts.  You also want proof that the payments you make to creditors on any settled amounts negotiated by your firm will state in print that the creditor has been paid.

Never let any firm handle credit payments on your behalf. By law, you must have full control over any monies moved into and out of any account.

If you pick debt relief, you take a temporary hit on your credit. The same is true if you choose debt settlement. If you choose debt consolidation, it's the same as filing for bankruptcy! I was stunned when I realized this was true. That's because if you enter a debt consolidation program, that company is mainly settling up a 'savings' account bearing your name. Creditors view this action as the same as bankruptcy because it shows creditors that you have trouble managing your money (no matter what types of reasons are involved). That doesn't mean that it's true.

If you pick debt restructuring, it's nearly the same as debt settlement other than you may redeem your credit standing once all debts are renegotiated and paid. This is also true of debt settlement. That's where the attorney contacts the creditors on your behalf. They negotiate a sum you can pay, based on the monthly payments you've made to a savings account.

If you choose the debt relief, monies are placed into a trust account for either the 24 months, 30 months, or 36 months, based on the budget you and your relief counselor calculate. When the trust fund accumulates money that will settle one account, negotiations with that creditor are set in motion. You then have a chance to accept the creditors 'yes' or 'no' on the amount they'll receive.

Bottom Line:

It's work and it's not so thrilling to tackle this challenge, but it will save your life.  That's because with the economic meltdown many of us faced, if you lost either a job or even 5 and 6 figures from a retirement plan, that's a lot of money lost.

These losses (for a lot of people) translate into an ability to only repay debts at about a 50% level or less. If you choose debt consolidation, the credit companies get most of their money and more.  It's not a good deal for you.

Signing off for now. If you would like referrals to some companies, I would be happy to reply to your questions. I don't receive any kickbacks for recommending a few firms. I do receive peace of mind knowing that I've helped some fellow WA buddies in need.

To Stay Afloat In Internet Marketing --

1) Maintain some form of part-time or full-time employment to help you pay your bills.

The reality is that it takes time to learn, set up and operate your Internet marketing business. Plan on 3 years business launch, minimum, not to punch a hole in your balloon. 

It takes most people 3 - 5 years to build a responsive list (of clientelle who want what you have to offer). 

It takes some operating capital..., in the form of some loose cash..., just to get your autoresponder and list built. That means that you're using 3 forms of advertising to get yourself out there (in cyberspace): 1) free means -- article marketing, 2) paid means -- pay-per-click advertising, and 3) a combination of both (through extensive advertising and site hosting). The goal is to eventually own different landing pages and/or websites carrying what's called data capture. That way you're collecting the names of people who want to know more about you. It does take some money and time to set this infrastructure up.

Finally --

The main point behind this information is to put you back in the driver's seat before you're spending (and charging) advertising. You want to start out slow. Spend as little of your own money as you can online. Build your skills and focus on acquiring paying customers. That way you can reinvest their money in your business.

Supporting Your Internet Business Success Using Proven Internet Means,

bkb2012