Jay

“Dear Steve,

I recently remodeled a house. I got the house for such a good deal that I had no problem using credit cards to pay for the repairs. Unfortunately, the market tanked as I was putting the house on the market. What I am left with is a $2000/mo mortgage and around $45,000 in unsecured debt. I make around $80k a year at my primary job.

Can I negotiate with the credit card companies? What is the best strategy?

Jay”

The Answer:

Dear Jay,

I can see the problem. Expenses that you paid for, with what you hoped would be short term credit, are now unlikely to be paid off since the home isn’t selling in this bad real estate climate.

Your minimum monthly payment on the $45,000 of credit card debt is probably $900 to $1,000 a month with very little of that actually reducing the total balance you owe.

As long as you are current on your bills, you will find very few real offers from your creditors to provide you with better terms simply by calling and asking without preparation and facts.

But here is one approach to try. What I would suggest is using any junk mail offers that come through your door in the next couple of weeks as free market research. Pay attention to the rates being offered to you on those new credit card offers and then call your current credit card company and ask if they can match or beat that rate. If they say that they can’t, ask to speak to a supervisor and ask nicely again.

But with some major creditors already raising interest rates, I’m less hopeful as I write this that the interest rate reduction trick will work.

A long shot that might work is to look through the latest low rate balance transfer offers and move your debt to a lower rate card. Despite tough economic times right now, good deals on balance transfers are still available, click here for current offers.

If you can’t get any satisfaction from your creditors, you could contact a debt management program and see what the current interest rate reductions are through that approach. Typically a debt management program is best used by someone that is struggling to pay the bills, wants lower interest rates, and wants to avoid bankruptcy. Entering a credit counseling program can hurt your credit but if you want reductions in payments and interest rates, then no pain, no gain.

Big Hug!

@GetOutOfDebtGuy

The Answer:

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Read the full article at GetOutOfDebt.org, click here: Jay Got Sucked Down With The Falling Real Estate Market

It never surprises me anymore to hear the silly things that people do to get out of debt. It easily ranges from outright theft, embezzlement, credit fraud, identity theft, etc.

But it does always surprises me to hear people say they are so paranoid about identity theft that they refuse to use a credit card on the Internet, yet they hand it to an unknown waiter. Where does the waiter go with your credit card?

I think that ranks right up there with my friend who said to me that he would not drink the water when we were in a foreign country but he had no problem asking for extra ice for his drink.

There is also the group that insists on recycling junk mail, including credit card applications, which then sit by the curb for anyone to take.

If you exercise common sense to not leave your personal information lying about, then that is good identity theft protection. However, even the person that exercises extreme care will not know if they have been a victim of identity theft unless they take a good look at their consolidated credit report at least once a year. Here is the link to the one I think is the best.

So among the list of people, like the waiter, that you need to be concerned about having access to your credit card, is your postal worker. They could easily pluck out the credit applications or blank cash advance checks that arrive in your mailbox.

But here is a story from the UK that could easily happen anywhere.

A Birmingham UK postman who stole hundreds of items of mail to get out of debt has been jailed.

Wayne Phillips, of Tavistock Road, Acocks Green, was handed a six-month sentence after being caught in a surveillance operation.

The 42-year-old, who worked for Royal Mail for three years, pleaded guilty to three counts of theft after 240 items were recovered.

Birmingham Magistrates’ Court heard how Royal Mail bosses at Camp Hill District Office became suspicious after receiving reports of missing mail in May.

They planted a package containing a mobile phone with normal mail on May 21.

Mr Dove, prosecuting on behalf of Royal Mail, said although Phillips did not intercept the package, he acted “suspiciously” when dealing with other mail.

He was approached by investigators and a search of a postal van found other items Phillips said he intended to sell at car boot sales.

A search of his home uncovered burnt items with three bin liners which included 10 items of recorded delivery mail dated May 14-19.

Phillips said he had made £600-700 from car boot sales.

Mr Peters, defending, said Phillips, who struggled financially after being made redundant from a previous job, learned a stark lesson.

He said: “He really has struggled to keep his head above water and keep the family together. He has tried to do what he can to support his family.”

Upon sentencing, Magistrate Mr Jenkins said: “I do not have to tell you how serious this. You embarked on a quite deliberate, lengthy, planned and premeditated action in order to solve your financial problems.

“You broke that trust placed in you by your employers and every member of the public who relies on the honesty of a postman in your position.”

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Read the full article at GetOutOfDebt.org, click here: People Do Stupid Things to Get Out of Debt. Postal Worker Sent to Jail.

An Israeli archeologist has discovered what he says is the earliest-known Hebrew text, found on a shard of pottery that dates to the time of King David from the Old Testament, about 3,000 years ago.

Carbon dating of the ostracon (meaning “statement”), along with pottery analysis, dates the inscription to time of King David, about a millennium earlier than the famous Dead Sea Scrolls, the university said.

The shard contains five lines of text divided by black lines and measures 15 by 15 centimeters, or about 6 inches square.

Archeologists have yet to decipher all the text, but initial interpretation indicates it formed part of a letter and contains the roots of the words “default rate,” “cash advance,” and “balance transfer,” according to the university. That may indicate it was a legal text, which archaeologists say would provide insights into law, society, beliefs, and the earliest form of junk mail and promotional offers.

More information about the real find is here.

(I couldn’t resist.)

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• Jay Got Sucked Down With The Falling Real Estate Market
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Read the full article at GetOutOfDebt.org, click here: Archeologists Finds 3,000-Year Old Credit Card Bill