How To Get Out Of Debt -- Make Money By Fixing Your Own Credit!

Welcome to my little monologue on how to get out of debt. If you're reading this, I'm going to assume it's because you're IN DEBT and are looking for a way out. Been there, done that. I'm still digging out, in fact. But there's a light at the end of the tunnel and it's either a train or a bright sunny day. I live in Arizona and we don't have many trains here, so it MUST BE the latter!

Here's the Cliff Notes rendition of my answer.

There are basically three ways to get out of debt:

1) Dig out -- what you're already doing

2) Bail out -- file bankruptcy (you don't think Congress is going to help US do you?)

3) Blow out -- in a positive sense.

To put this another way, if a glass is partiall filled with water, you can do three things with it: add more, remove some, or just break the glass and start over.

I'll elaborate on each of these now just so we're both on the same page.

This approach isn't much different than what you're already doing. Basically, you need to decrease your expenses, scrimp and save like hell, and hope you can dig yourself out of the hole you're in before you get downsized, right-sized, out-sourced, laid off, or just fired because you're so exhausted you keep falling asleep on the job.

Oh, yeah, there's also the "get a second/third/forth job" option. Sleep is SO over-rated, don't you think?

Sometimes people get to a point where they just can't go on any more. Our lawmakers have made a provision for you, only they set it up at a time when life, and finances, moved a lot slower.

It's called Bankruptcy, or just "BK".

In over-simplified terms, Bankruptcy is an option where regular people can go to court and ask to have their debts "adjusted". If you have a source of income, the court will attempt to help you restructure things so you can eventually pay everything off. If you don't have a source of income, or it's clear that you can't continue making payments with any certainty, then the court will simply discharge your debts. Either way, your banks and creditors will most likely not do a thing to help you avoid BK. The finance laws seem to make it more favorable for them to "charge-off" your debts rather than try to work with you to get them paid off. So they just don't seem to care, nor are they very willing to "work things out".

Companies can also file BK and go to court. In this case, the judge will frequently allow all debt payments to be suspended while the company gets its cashflow back into a safer range. In contrast to how regular consumers (people) are treated, their creditors will also frequently cut their interest rates way back and even reschedule much of their debts.

In other words, when companies file for BK, the things that follow often make sense and work for everybody involved. But when consumers file for BK, the things banks and creditors do (and are willing to do) often make little if any sense.

Ok, I'm trying my best to rhyme a little here. Gimmeabreakalready!

This option is basically increase your income. Yeah, yeah, I know -- that's much easier said than done. Well .... maybe, maybe not.

Here are some options that come to mind:

1) if you have a job, ask for a raise

2) find a better-paying job

3) find someone to marry who's much wealthier than you

4) make something out of nothing -- that is, create a business

Chances are the best option is what most people would consider their least likely choice.

If you're trying to Dig Out, we've got some shovels in the back. Good luck.

If you're looking seriously at BK, well, we might be able to help. Stay tuned.

If you're looking to Earn More, we've got something for you. Actually, it's close to getting a better job.

Finally, we can't help with the marriage thing. You're on your own with that option.

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Did you know that nearly 90% of all new jobs created in America are by "small businesses"?

Did you know that the net employment levels of Fortune 1000 corporations have FALLEN STEADILY since 1990? That means the Fortune 1000 companies employ fewer people today than they did in 1990. Obviously, since the population has continued to rise, and the unemployment rate has been steady, there's only one conclusion that can be drawn: "big business" is not a safe place to be today. I personally believe that big companies are about to come crashing down between now and mid-2010.

In fact, for the past 20 years, "the future" has been in the hands of small businesses -- which includes self-employed and home-based entrepreneurs.

As an aside, small businesses have produced far more millionaires over the past 25 years than big corporations and fat inheritances combined. So if you have a desire to become a millionaire, you're far more likely to do it on your own than as an employee of a big company.

So what follows is dedicated to all of the "Millionaires In Training" who might be reading this!

While slightly over-simplified, there are basically five steps to starting a business:

1) Pick a business

2) Come up with a NAME for your business

3) Set up a bank account for your business

4) Get whatever kind of "business licenses" you might need

5) Find people who you can serve by helping them solve their problems.

Now, there are folks who would say #5 should be at the top of the list. I can't really argue with that, except to say that it's usually the last thing on most people's list rather than the first.

Whatever business you choose to get into, you're not going to survive if there aren't people you can serve in some capacity. It's smart to identify WHO those people are, HOW you're going to reach them, WHAT they need exactly, WHEN they need it, WHERE you can obtain or supply your products or services to them, and WHY they should buy from you instead of someone else.

However, in the recommendation I'll present shortly, it's easy to find people who you can serve, so focus on the rest first.

In a nutshell, that's what business is all about: finding a need and filling it. Let's elaborate on that a bit.

As I said above, successful business people simply find a need and fill it.

If you want to sell ice to Eskimos in Alaska during the winter, you're not going to find many takers. However, people once believed that about selling bottled water, which now costs more per gallon that gasoline has ever been (in America).

Here's the secret: Find a starving market and give them a taste. Offer something at a fair price that solves their problem and they'll keep coming back for more!

For instance, I'm assuming again that you're probably in debt and are looking for a way out. If I can show you how to solve your problem, will you go for it?

Believe it or not, only a small percentage of the population WILL! On average, that number seems to hover at around 2%. That is, you could be handing out hundred dollar bills to people in an unemployment line, and only a few out of every one hundred people would take them. It's just the nature of people to do the unexpected -- or rather, to NOT do the expected. I'm going to share something that will help you shortly, but only 1-2% of the people who read this article will take advantage of it. Go figure!

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SIDEBAR: Remember the scene in the movie 'Tootsie' where the girl (played by Jessica Lange), complains to her faux friend (played by Dustin Hoffman in drag) that it would be so nice if, just once, a man would be honest when he approached her and say that he liked how she looked and would love to take her home and jump in bed with her? Then when Dustin Hoffman's male character met her at a party and did exactly what she said she wanted, Jessica Lange's character threw a drink on the man and huffed away in disgust. That's exactly how most people are.

JOE: "I'd give ANYTHING to find a legitimate, honest way to make extra money today!"
ME: "Ok, take a look at this..."
JOE: "Hey, my friend said this is a scam! I'm outta here!" (as he hurries away)
ME: (mumbling to myself) "But, uh ... it's working for me..."
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It's like handing water to people who are begging for it, and they slap it out of your hand and accuse you of trying to fool them. I know, YOU are not that silly, but just about everybody else IS. Get used to it.

And it's all of THOSE folks who make you think you have to SELL something. If someone wants what you've got, you're simply helping them fill their needs. You don't have to say much.

I'm going to show you something shortly that will help you repair your credit and get you out of debt at the same time. All YOU have to do is tell people how you're getting out of debt by repairing your credit. Do you think a FEW might be curious enough to ask, "How?"

Pop quiz:

1) If you're starting a business, do you want to get into a: (a) growing market; (b) shrinking market?

A "growing market" means more people are looking for solutions in that area every day. In a "shrinking market", fewer people are looking for solutions in that area every day.

2) How much do you have to invest, both in terms of time and money?

SANITY CHECK: believe it or not, most businesses are NOT free to get started. Why people expect to find a great business that doesn't cost anything to get into is beyond me. It's like looking for an ice skating champion who grew up in the middle of the desert -- possible, but highly unlikely.

Look ... any business you can think of consumes two things: (1) time; (2) money

Entrepreneurs typically have more time than money, and they don't like trading their time for money on a one-for-one basis. The only realistic way to become a millionaire today is to find a way to leverage your time to give you a monetary return that's several times what you're able to earn by yourself. You can NOT do that working for someone else. It's virtually impossible.

That doesn't mean that having your own business is a slam-dunk reason you WILL become a millionaire. :)

So contrary to what some might think, you want to get into something that represents a GROWING MARKET. For example, you want to get into a business that makes bullets BEFORE a war breaks out, not a while afterwards.

Right now, two large and growing markets are staring you right smack in the face.

And they are ... "Credit Repair" and "Get Out Of Debt". I mean, THINK ABOUT IT for a minute. At the present time, these two areas are very tightly intertwined.

Banks are calling loans, dropping credit limits, doubling, tripling, even quadrupling interest rates. This leads to greater debt and less access to capital.

Banks are basically setting people up so their credit gets damaged. Then they plan to use that as an excuse to charge even more ridiculous rates! This is SUCH a SCAM! But it has be backing of congress and our elected officials.

A funny thing about people is that they frequently hang out with others who are experiencing the same kinds of stress. So if you find one person who's in debt and has bad credit, they probably have a bunch of friends just like them.

So I'm going to guess that YOU probably know a few people who are in debt and could benefit by having their credit improved.

Ok, here's what you need for fixing up your credit:

* access to your credit reports
* regular credit monitoring -- you want to know when things change, and what changed
* someone who knows the laws and can advise you on your rights and remedies given your present situation
* several letters written to creditors and the credit bureau that contain very specific legal language and don't tell a story
* someone who can review the replies you get and tell you if they're kosher or not
* follow-up letters, in many cases

Hmmm.... sounds like you need a lawyer. Or a whole staff of them!

Ya know, that's a funny thing ... most folks will tell you they don't have any legal issues to deal with regularly. However, most people don't realize that everything -- every single itty bitty thing -- surrounding credit reporting, debts, creditors, collectors, and ALL that stuff, is tangled up in legal jargon, assumptions, and things you don't know that you don't know. And I can virtually guarantee that your credit is messed up mostly because of things you don't know and nobody will teach you!

One thing that most people don't realize is that the "consumer protection laws" surrounding credit reporting and debt collections are stacked heavily AGAINST average consumers like you and me. They protect "smart consumers". But since most consumers are clueless, they are preyed upon and taken advantage of by the very people the laws are supposed to protect them against.

For instance, do you know that if I write you a letter that claims to be an attempt to collect a debt from you -- whether you owed it or not, whether it was valid or not, and whether it was paid or not -- and I give you 30 days to respond or I will assume the debt is valid, and you fail to respond in a very specific way in 30 days, THAT DEBT CAN BE TURNED OVER TO A COLLECTION AGENCY AND REPORTED TO THE CREDIT BUREAUS!

Do you know that, according to the FTC ... 85% of all consumers have at least one wrong or incorrect entry on their credit reports? Half of all consumers have not checked their credit reports in over 2 years? And a large percentage of consumers have over 50% of the items on their reports are wrong or inaccurate?

Suppose you had an old debt that you paid off and I sent you a collection letter alleging you still owe a few grand. Then I called you and got you so confused that you agreed to pay me $10 as a "good faith payment" while you investigate it further. Do you know that I could turn around and take you to court for whatever amount I claimed you owed and the judge would award it to me?

Do you know that somewhere between 80% and 90% of all written collection letters do not conform to the law, and that if you can figure out how you can not only get the entire collection effort stopped dead but you can also sue for statutory damages?

Do you realize that the reason most people's credit is so screwed up is because virtually nobody has a clue what their rights and remedies are under the law, nor do they bother to get a lawyer involved at ANY TIME?

For some strange reason, people really believe that creditors and collection agencies have some sense of "goodwill" about them and really have your best intentions at heart.

Listen up...

These guys have one thing in mind: stealing your money! LEGALLY!

Most of the lawyers you'll find will charge you around $100 each to write the letters you'll need. They'll also charge you between $150 and $400 per hour to talk with you, answer your questions, and advise you of your rights and remedies under the law.

Over a year's time, the average person can expect to have 10-15 letters written, and consult with their lawyers for 2-5 hours in the process of getting their credit cleaned up. If you add that up, it could easily cost you $1000 to $3500 or even more, just in legal fees, depending on your situation. I suppose it's not surprizing why people don't bother to consult with a lawyer.

At that rate, you can see why "credit repair outfits" might seem like a "good deal" at only $500 or $2500 or so, right? But do you know that the FTC says the vast majority of them are "scams and frauds"? And they leave you in worse condition than before you met them! STAY AWAY FROM THEM!

One last thought. I've been doing this a long time and I discovered something very interesting: if I write a letter to a collection agency, and I have a law firm send the exact same letter to the same collection agency, but on their law firm's letterhead, I'll get two completely different responses! In fact, about 90% of the time, collection agencies either won't reply to letters they get from law firms, or they answer in a way that is legally equivalent to not responding, which means they cannot do anything further to you.

And, when you write letters yourself, there is an extremely high chance that the reply you get will not conform to legal requirements. Which in most cases means you can not only get the entire matter dismissed, but you probably have grounds to sue them. Or at least send a threatening letter that can result in them sending YOU a check.

As you might guess ... THERE IS A SOLUTION!

Before I tell you, hang on a minute while I address the other thing ... what you need to get out of debt.

There are two things the average person absolutely MUST DO to get out of debt:

1) reduce expenses, and

2) increase your income

Believe it or not, even if things are looking horribly dismal for you, if you have a regular job and are earning even a modest living, I have a secret for you that applies to reducing your expenses -- courtesy of Uncle Sam.

It's called a "Home-Based Business".

The truth is, by starting up a home-based business, you can immediately qualify for expenses and deductions that you simply cannot claim otherwise. Before you start to think I'm crazy, IT'S THE LAW, OK? Really. The TAX LAWS FAVOR BUSINESSES OVER CONSUMERS. Go figure.

It's this simple: Start a business -- save taxes.

So you might be wondering ... how much you can save each month?

If you're making $2000/mo, there's a good chance you can immediately save between $100 and $250 per month on W2 tax withholdings. Maybe much more. The more you earn, and the fewer W2 tax exemptions you claim, the more you can legally save by starting a home-based business.

One action you MUST TAKE when starting a business is to do something CONCRETE that documents your beginning. One way is to buy a business license of some kind. I'm going to tell you about one shortly that you can buy right now for only $49. When you do, that establishes a firm date -- like a birth date -- of your business. It's documented and verifiable to the IRS and whomever else might ask.

INCREASE YOUR INCOME!

Now what if I told you that everybody you can find who needs to get out of debt and fix their credit can earn you at LEAST $50 EACH. You can earn that one-time license fee back in 5 minutes after signing up. (Well, actually, line 'em up cause it takes a business day or two for your paperwork to get processed.)

Actually, the first two or three people you find will earn you $50 each. After that, you'll get a raise.

Once you get your business license, while you're waiting for your paperwork to get processed, go open a checking account somewhere in a company name. Do NOT use your personal checking account! You MUST keep your business and personal lives separate if you want to maximize your tax saving benefits. Or at least as clearly documented as possible. The best way to do that is to keep separate books and bank accounts for you and your business.

(NOTE: You might need another license or permit in your state, depending on where you live.)

Find a bank that offers free checking. You don't need a "business account", but you will need a "DBA Name" to open it. That's the business name you've chosen to use, as registered with your State's Corporation Commission or Secretary of State or whomever manages business names and trademarks.

SIDEBAR: My brother earns quite a good living at his job. However, like many people today, his expenses have increased to the point where they pretty much eat up all of his income. He has three kids between 7 and 12. He spends a lot of money on them, like dance lessons, karate lessons, music lessons, soccer, etc. It's not tax deductible. His wife is a stay-at-home-mom. She has never worked since they had their first child. They have a big house with a couple of extra bedrooms. I'd like to tell you he's saving a bundle with a home-based business in his wife's name, where they "employ" their kids and get to deduct $15,000 a year ($5,000 each kid) in additional taxes, as well as about 25% of their monthly house expenses, all totaling over $25,000 in tax savings each year -- all for the cost of that $49 business license, a bank account, and another $50/mo or so (which is also tax deductible). But my brother somehow thinks that the tax laws are a scam, and that nobody but rich politicians and company executives can benefit from home-based business tax breaks.

If that's you, I'm sorry. This isn't for you. Close this page right now and go file bankruptcy.

In the next section I'm going to tell you exactly how to proceed with all of this. It may surprize you, but if you sit back and give it some thought, it will make perfect sense.

But first, please spend a few moments and think about how many people you know who need to get out of debt, and who can benefit from fixing their credit....

Write their names down on a piece of paper before you continue.

Ok, now if you recall, I said you're going to need several things to get your credit fixed:

* a dozen or more letters written on law firm letterhead
* several hours of legal time reviewing materials and replies you get
* several hours of legal time getting your questions answered

Once you begin, you'll also want

* credit monitoring -- all three credit bureaus
* identity theft protection -- in case you discover things that aren't yours, they can lead to other, much nastier discoveries

(The FTC estimates that the average ID Theft case sucks up over 150 hours of time getting it resolved. That's more time than most people get for vacations every year!)

And since you're starting a home-based business, you'll also benefit from access to:

* tax advisors
* business consultants
* legal experts
* numerous legal forms and templates
* retirement planning experts
* you might want to eventually consider setting up a corporation or LLC

You can actually get ALL of this for less than $55/mo.

Your "business license" will cost you $49, and it will enable you to take advantage of a bunch of tax breaks that you cannot take right now. One of them is that you'll be able to deduct your $55/mo as a business expense. Even though it's mostly a personal benefit, by getting the additional coverage for your business, it becomes a tax deductible business expense. Funny how that game works, isn't it?

(You've also got cell phone expenses, internet expenses, computer expenses, vehicle miles and expenses, meal expenses, advertising expenses, travel expenses, employee expenses (if you've got kids, for example), and a host of other things that can now qualify as legitimate business tax deductions that don't qualify if you don't have a business license of some kind.)

STEP #1: Purchase your business "license" for a one-time $49 fee through this link:

Click here to purchase your HOME-BASED BUSINESS LICENSE

NOTE: I call this a "license" because you're purchasing a legal right to promote this to others and earn commissions in the process. Technically, it IS a "license", but not what many people consider in that sense. Again, it's a legal question. :)

STEP #2: Purchase the legal care you'll need to fix your credit and help with your business.

Use the link on the page above AFTER getting your business license, or use the following link, for about $55/mo (and a one-time $10 fee):

Click here to purchase the legal care needed to do your own CREDIT REPAIR

NOTE: you want to select these options:

* Expanded Family Plan
* Legal Shield
* Identity Theft Shield Gold Plan (all three bureaus)
* Home-Based Business Rider (allows this to be a tax-deductible business expense)

STEP #3: Finally, there's a book I STRONGLY recommend you purchase as well that explains all of the tax angles and benefits involved with having a home-based business. You can learn more here:

Click here to learn important information on tax savings

Scroll about half-way down the page. (There are several things for sale there. You might want to look them all over, and sign up for his mailing list.) The book itself is $27 for an electronic dopy and $37 for a bound printed copy.

So here's what this will cost you TODAY:

$49 -- Business license
$55 -- First month legal help (monthly cost)
$10 -- one-time processing fee
$27 -- eBook to help you understand tax benefits
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$141 -- out of pocket today to get started

If you read that eBook right away, it will explain tax benefits you can claim just this year because you started your business. He has a free video somewhere on his site that you can watch where he explains some other benefits and ways you can save taxes.

IMPORTANT: you MUST have a clearly identifiable home-based business in order to claim these tax benefits! It does not matter WHAT that business is, but it is best to have a way that clearly demonstrates the exact date you started it.

Now, if you want to borrow the money for this from someone, you can repay them fairly quickly simply by finding two other people who also need to get out of debt and/or just want to fix their credit. You'll earn $50 commissions on the first two or three. After that, you will get a raise to $100 or more per person. Will that help your financial problems?

Again, think about how many people need to get out of debt, how many are getting their credit limits slashed, and how many are in deep doo-doo because their credit is already trashed.

You just need to tell them how you're getting out of debt by using this program to fix your credit. They will want to know how. If you're lucky more than 2% of them will sign up.

Statistically speaking, 25% of the American population is currently unemployed or under employed, and over 50% have credit scores under 680 that can benefit from getting things fixed.

All you have to do is tell people you're getting out of debt by fixing your credit, and tell them how when they ask.

What could be simpler? :)

I stand behind these recommendations 150% and believe with all my heart and soul that they will benefit anybody who chooses to employ them fully, properly, and in a timely fashion.

If you have any questions, please do not hesitate to contact me through the means given at the links above.

Furthermore, I will work closely with anybody who chooses to avail themselves of this opportunity to clear up their credit and get out of debt.

However, statistically speaking, I expect that 98% of the people who read this will shrug it off and look for something else. That's fine by me.

I'm ready and waiting for the 2% of you who ***REALLY*** WANT TO GET OUT OF DEBT!

KEEP THESE FACTS IN MIND:

People are being laid off and losing their jobs in record numbers today.

The banks are taking actions that will have the effect of trashing millions of people's credit over the coming year, even as those people do absolutely NOTHING to cause harm to their credit.

Everything involved with credit reporting, creditors, and collection agencies is covered by laws that are stacked against average consumers like you and me.

All you have to do is talk to people about what you're doing to clean up your credit and get out of debt and SOME of them are going to ask you how THEY CAN TOO!