So congress passed and the president signed the most far reaching mortgage bailout bill in history last week. Lest anyone should think that this bill will change anything soon, please think again. Why? Here are a few facts about the bill. Currently , there are two million homeownners facing foreclosure. This bill will help only 450,000 of them. The bill does nothing to restore equity in the housing market. Banks are not mandated to lower interest rates and rewrite loans.

According to the IMF, no turnaround for the housing market is in site. Our ecenomy will continue to effected for years to come. The current rash of ecenomic problems in the US is not just a blip on the radar, but rather very far reaching. The full effect of the shrinking dollar and future inflation fears have not yet begun to rear there ugly heads. The US currency is becoming a third world value.

If you would like more information on debt and debt settlement and debt management solurions please visit American Debt Enders. If you would like to subscribe to our FREE Credit Counseling Newsletterwhich contains unbised information on self empowerment through debt freedom. If you subscribe you will receive a Free Budgeting Software to help you gain control over your money.

Also, if you are struggling to make ends meet and need credit restoration services or a bad credit car loan for a new car, the visit Credit Restoration

Written By: Steven Ciantro Certified Credit Counselor Member National Association of Credit Counselors American Debt Enders

2. Debt Settlement-Tax Ramifications-What's The Real Deal?

As you may or may not be aware one of the arguments put out by those opposed to debt settlement programs is that in the end you will not save money because you have to pay taxes on the portion of the forgiven debt. So here is the truth concerning this point.

It is true that creditors are required to report forgiven debts in excess of $600.00 on form 1099 to the IRS. While it is required, it does not always happen. So, what about when it is reported. Well lets look at the facts. The fact that you are required to report the savings in the first place means that you saved a considerable amount of money. Additionally, the fact that you had to enroll in a debt settlement program also means that you are probably just getting by, even though you have thankfully resolved your debt or debts. That means that the great majority of people who settle their debts are not required to pay taxes on the forgiven part of the balance. That's because of the "insolvency" rule, described in IRS Publication 908, "Bankruptcy Tax Guide." Don't let the title fool you. You don't need to have filed a formal declaration of bankruptcy to take advantage of the insolvency rule.

Insolvency basically means that you owe more than you own.It does not mean you are bankrupt, and it is easier to claim insolvency than you may think. If you have enough equity in a home (or other property) to outweigh the total of your liabilities (debts), then you have a positive net worth, and will likely have to pay taxes on the forgiven debt amounts. However, the majority of people in serious debt trouble have a negative net worth, and are therefore insolvent. The way it works is that you can offset the canceled debt up to the amount by which you were insolvent at the time you did the settlement.

Remember, your goal is to achieve self empowerment through debt freedom. If you are in a settlement program and need more information on this topic, please consult your tax professional for guidance.

Written By: Steven Ciantro Certified Credit Counselor Member National Association of Credit Counselors 516-476-5903

3. Can't Do A Debt Settlement Program Because Of a Creditor Lawsuit? Try This.

Quite often debtors wait for a precipitating event before they seek professional help. Whether that be a debt settlement program, debt management program, or some other debt reduction solution. Well. if you have already been sued by a debt collector on one of your debts and are know unable to place that debt into a pro0gram, you can try the following debt validation technique. Which basically is enforcing your rights under the Fair Debt Collection Practices Act.

The following is a draft of a letter you can use to answer either a complaint by a creditor that has already served you, or your first notification from a collector.

Here are the basics of the letter: I am writing in response to your (letter or phone call) dated {insert date}, (enclose a copy, if you have a copy) because I do not believe that I owe what you say I owe.

This is the first contact I have had on this matter therefore, in accordance with Section 809 - Validating Debts of the Fair Debt Collection Practices Act, I request that you provide me, the following, in writing.

Provide me with information on how you calculated the debt you say I owe; Provide me with copies of any papers that show I agreed to pay the debt you say I owe; Identify the original creditor-What the money you say I owe is for; Provide a verification or copy of any judgment (if applicable); Show me that you are licensed in my state, and provide me with your license numbers, (If Applicable).

Be advised that I am exercising my rights under the Fair Debt Collection Practices Act and the Fair Credit Reporting Act, which are as follows:

You do not have to respond to this dispute except to tell me that you either intend to cease your collection efforts or to pursue other legal means of collecting this debt. You cannot add interest or fees accept those allowed by the original contract and state law. Any attempt to collect this debt without validating it, violates the FDCPA. If you choose to pursue a judgment without validating this debt, I will seek dismissal based on your failure to follow the FDCPA. Be advised that it is my intention to record all phone calls, keep all correspondence and will not hesitate to report violations to my State Attorney General, the Federal Trade Commission and the Better Business Bureau.

Since I have disputed this debt; until validated your information concerning this debt is inaccurate. Thus, if you have already reported this debt to any credit-reporting agency (CRA) or Credit Bureau (CB) then, you must immediately inform them this debt is in dispute. Reporting information that you know to be inaccurate or failing to report information correctly violates the FCRA § 1681s-2.

If you do NOT own the rights to collect this debt, I demand that you immediately send a copy of this dispute letter to the original creditor that you say I owe money too so they are also aware of my dispute with this debt.

In accordance with section 805(c) - Ceasing Collections, of the Fair Debt Collection Act, do not contact me about this or any other matter, except by official mail and then only to advise me that your debt collection efforts are being terminated or that you are taking specific actions allowed by law.

Well thats it.

Note: This letter was not written by me as I am not an attorney. It is however a valid debt validation letter and can be found in many areas of the internet in various forms. Written By Steven Ciantro American Debt Enders Member National Association of Certified Credit Counselors

4. Debt Management, Debt Settlement Bankruptcy And Your Credit Report

Americans have become addicted to the concept of the "Credit Score". The first question people ask when they are buried in debt and seeking a solution is: How will this effect my credit score? This is a perfectly valid question, however, it is usually asked by individuals with very low scores due to missed payments and mountains of debt, whose credit profile is more of a debt profile. OK, fair enough you say, but what about those individuals who may have very ideal credit scores and still have mountains of debt that suddenly accumulated through real fault of there own.

Here are the answers. If you enter what is commonly called a Debt Management Program, where you will pay back all your unsecured debt in full in about 5 years, at slightly lower interests rates, the impact will be as follows. You will receive a notation on your credit report which will say "account is managed by a DMP". This alone is not used as a calculation in your FICO score. However, your credit score will drop. Why? Because you will be closing your unsecured tradelines (credit cards) and anytime you do this you not only effect your debt to available credit ratio, but also effect negatively your credit history. These two occurrences can effect your score by potentially a whopping 40%. It is not uncommon for Debt Management companies to tell you about the statement on your credit report but not about the rest. As you start to eliminate and paydown some debts your score will then begin to improve.

If you enter a Debt Settlement Program, your credit score will also initially be negatively effected. In this type of program you will be paying a law firm or debt settlement company to be the intermediary between you and your creditors. They will be taking a fee, usually the first number of months of your payments and then put your money into an escrow account to be used to make settlements which they will negotiate on your behalf. Since during the early phase of this program your creditors will not be receiving money, they will look to put negatives on your credit report. This, of course, will negatively impact on your score. Of course, most people who utilize this type of program already have very low credit scores. If you are starting this program with a high credit score, then know that your credit score will drop in the early phases of this program. As settlements are made and your credit report reads "settled as agreed", as settlements are made, then the negative impact of doing the program will lessen considerably and your credit score will begin to improve as each settlement is made. Note: If you enroll in a debt validation/debt settlement program then negatives which were placed initially on your credit report may actually be removed as part of the settlement agreements.

What if you file Bankruptcy? Many misconceptions surround a bankruptcy and its effect on your credit score. If you file a personal bankruptcy, your credit score will drop. Again, as with the previous programs, this may be of little consequence, because your score may well have already dropped due to the debt situation. In all cases, after the bankruptcy is discharged by the courts, meaning, the filing is complete, you will begin receiving in the mail credit card offers. Why? Because the banks know you have to wait a full 7 years to file any second bankruptcy. The initial offers will be at very high interest rates. You will probably also be able to finance a car. Again, it will be at a very high interest rate. After 1 year, if you are wise and use your very expensive new credit wisely, you will after a year get slightly better rates. And, after a second year, even better. In terms of refinancing or purchasing a new home, a foreclosure is much worse on your credit report then any of the listed solutions in this article. Many banks will allow a refinance after a bankruptcy, of course, the rate will be less than ideal.

So, to sum up. Of course all three of the above listed programs will, depending on where you started, negatively impact your credit. Is this a reason not to do them? Not if you are in a dire debt situation. Written by: Steven Ciantro Credit counselor AmericanDebtEnders Help@americandebtenders.com 516-476-5903 This article may be reproduced in its entirety, provided the full signature line and this permission line are used.

5. Voice Added To ADE Debt Settlement Website

In the interest of making its website more personalized among the many credit counseling websites offering debt settlement , credit counseling, credit restoration and debt management services, American Debt Enders has placed a voice over on its landing page. Because credibility is such a major issue in the free credit counseling area, the hope is that a message from a real person will at least put people enough at ease to contact ADE for advice.

Since all of our consultations are completely free and without obligation, debtors can have at the very least an ability to have there questions answered and hopefully be able to get a direction and a plan for dealing with there debt.

I have absolutely no doubt that the coming years will be very difficult ones for many in the US. Things are changing rapidly. The days of cheap energy will not return for some time to come. Coupled with the fact that the dollar has weakened to third world currency status and things are going to get more difficult. It is with this in mind that every credit counselor and credit counseling organization whether for profit or non-profit should be putting out an urgent call for people to achieve self empowerment by learning to live a debt free life. This is serious business.

A visit to the American Debt Enders website will also invite the user to subscribe to our Free Credit Counseling Newsletter which is connected to our blog feed. Taking advantage of out Free subscription will get the subscriber Free Budgeting software which they can use to gain control over there daily and monthly finances. Additionally, anyone in need of a bad credit car loan should take full advantage of the credit restoration program offered by American Debt Enders in conjunction with VR Tech . A client can get a bad credit car loan and then enroll in the program to get their credit fixed. Written By: Steven Ciantro American Debt Enders Help@americandebtenders.com

6. Exactly When Do Your Creditors Get Paid In A Debt Settlement Program?

So much confusion surrounds this issue, that it is time for this article to be written, and hopefully read. When debt settlement bashing takes place by the less informed, it almost always contains the following “I was told to stop paying my creditors and just pay them (them being the settlement company or settlement attorneys) but they just kept the money and never paid my creditors. Another one is “I owed more money after 6 months, then I did when I started the settlement program”. Do these statements mean that the settlement program was a scam? The answer is, no, at least not based on the former two assertions.

Debt Settlement can be tricky business, but it also can be an absolute lifesaver. The key is understanding the settlement program guidelines. So, to answer the title question, your creditors do not get paid on a monthly basis in a debt settlement program. And sometimes your creditors, whether the original creditor, or a collector can be less than cooperative. In a debt settlement program a monthly payment is made to the debt attorneys or the settlement company on a monthly basis. That money is used to do two things. 1-pay any fee you are being charged for the service , and two-accumulate in a savings account or settlement trust account until it reaches enough money to settle one of your debts. Did I say one? Yes, unless you have a bunch of money to fund the actual settlement account, the money has to accumulate and then each of your creditors is settled with. Again, except for unusual circumstances, your creditors will not be receiving any monthly installments. So, they will be reporting you late on your credit report and probably still attempting to collect the debt, to varying degrees.

All of the fees and the exact distribution of money that you pay and where it is going must be completely disclosed to you at the outset of the program. If it is not, I suggest you run for the hills and find another settlement company. A reputable settlement company will make full fee disclosure as well as any guarantees at the outset. They will also make a full program disclosure, things like, how will this program effect my credit report. Will I receive creditor phone calls? How should I handle credit and collection phone calls? If you are currently paying your unsecured debt on time, and expect to be able to continue to do so, then enrolling in a debt settlement program because you want to save money, is very foolish, and you are only inviting trouble. Debt settlement programs are for people who are drowning in debt and cannot make minimum payments, and are not candidates for bankruptcy or have a moral aversion to it. If you need credit restoration services after the program is done please visit: The programs work, but please go in with your eyes open, and maybe we can together stop the naysayers and propagandists.

If you enjoyed this article please subscribe to the Free Credit Counseling Newsletter by visiting: and subscribing. It is free and we never share your information. Written By: Steven Ciantro Member National Association of Certified Credit Counselors American Debt Enders Help@americandebtenders.com

7. The Case For Debt Settlement

With the proliferation of unsecured debt problems has come the growth of debt settlement companies. Much has been written on this topic, just as much has been written about Debt Management Programs, also known as credit counseling. Frankly, some of what has been written has been done to put out propaganda by both sides. What do I mean? Well, frankly, the non-profit industry, which is controlled by the banking industry, has had a vested interest in seeing debt settlement companies go away. They are looking to get all of the debt paid back, plus some interest, whenever possible.

The non-profits would rather not have the competition, yes, they are businesses and please do not let anyone persuade you otherwise. Just like in any other business there are good and bad, and the good ones do serve a vital function. There is much more to debt settlement than just paying back less than you owe in lower monthly payments over time. There is a real psychological benefit to many of these programs, and a real benefit to the bigger economic picture.

When most people are oppressed by a debt problem, it creates an imbalanced emotional situation, and eventually the debt takes over other areas of their lives, Things like work, people relationships, relationships with their children, and on and on. Not to mention, they tend to feel like disempowered failures. It does not matter that the debt has been caused by some unforeseen catastrophe, it only matters that they have lost control.

Many of these people can no longer afford the high payments of a debt management program. The cost of gas, the devaluing dollar all have contributed to this widely expanding problem. Many people can no longer qualify for bankruptcy. What if they can qualify for bankruptcy, but opt instead for debt settlement, and so many people do. Ask yourself, why would a person who qualifies for a chapter 7 bankruptcy, where you get to just walk away from the debt, instead opt for a debt settlement program?

I believe I know the answer. It gives people back control over there bad situation. How so, you ask. Well, when they enroll in debt settlement they are paying back about half of there debt, and doing so in affordable, regular, the key here is regular monthly payments. Yes, it is true that the creditors do not receive any money until a settlement is reached, but that is not the issue. The issue is that they are once again, establishing disciplined monthly payments and have a financial plan to resolve the debt. They feel better, because they have not chosen to simply give up and file a chapter 7 bankruptcy.

Please do not misunderstand me, there are times when a bankruptcy is the only viable alternative, just as there are times when a debt management program is a best alternative.

But, debt settlement definitely has its place. Not to mention, creditors are at least getting back some fair percentage of there money. Written By: Steven Ciantro www.americandebtenders.com Member National Association of Credit Counselors Help@americandebtenders.com

8. Cabinet Refacing On Long Island

For over thirty years IKS Kitchens has been providing outstanding service to Long Island, Brookly and Queens homeowners looking to upgrade their kitchens with top quality and lower cost. IKS provides this solution by providing expertise in the area of cabinet refacing and granite countertop design and installation services. Great care is taken in consultation with the homeowner to insure a kitchen design with outstanding results. Even if you decide not to go forward you will be smarter after the consultation than before.

Do you really want to deal with an impersonal chain where the salesman are constantly revolving, or would you rather deal with the owner of the business himself, who is going to guarantee a positive outcome for you.

When you think Cabinet Refacing, think IKSKitchens.

9. Cabinet Refacing on Long Island

IKS Kitchens located in Rockville Centre, NY services Long Island , Brooklyn and Queens with outstanding service and knowledge in the area of cabinet refacing and granite countertops. The company has been in business for over 30 years and prides itself in excellent service.

So, if you are considering a new kithcen or kitchen upgrade let IKS give you a free no obligation quote, and see what they have to offer.

10. For Profit Credit Counseling Companies Becomming More Prevalent

Here are some facts about For-Profit credit counseling companies that counter the rediculous arguments put out by the non-profit industry to combat competition. To date, 9 states have removed the non-profit requirement for companies performing Credit Counseling and directly offering Debt Management Programs. Thirty nine states already allow for-profit credit counseling.

There is absolutely no evidence that for profits have hurt the industry, in fact, for profits must operate as efficient business's because they pay taxes. Non-profits do not.

Regarding Debt Settlement, which is becomming a much morepopular program due to its greater viability in the form of lower payments, the industry is also getting its act together. The simple fact is, debt settlement programs work. The key is to insure that the client completely understands how the program works in the form of full upfront disclosures, and ongoing customer service.

So, if you are looking for a debt reduction program, do not buy into the propaganda about non-profit companies. Yes , they also can do a fine job, however, they tend to be quite limited in the programs they can offer. For -profit credit counseling companies usually, can offer both debt settlement, and debt management programs as well as credit restoration programs, and even more services.

So, if you are looking for debt help, go with the company that offers the best program for you, because, no two peoples debt problems are alike. Written By: Steven Ciantro www.americandebtenders.com http://freecreditcounselingblog.typepad.com/creditcounseling/ http://www.vrtechmarketinggroup.com/aciantro/ Member National Association of Certified Credit Counselors

11. If Your Credit Counselor Can Only Offer You One Solution, Find Another Counselor

Having just completed my recertification as a Nifce certified credit counselor and member of the National Association of Credit Counselors, I noticed that the banks actually created there own definition of credit counseling. As amazing as it seems, if you tell a banker from the credit card industry that you are going through credit counseling, they think that you mean you have enrolled in a debt management program, which they control. If you say you are being counseled about the difference between debt management and debt settlement then the banker would comment that this is something other than credit counseling.

It should be no surprise to anyone in the industry that the banks and some legislative bodies have managed to narrow the definition of what the real spirit of credit counseling is. It is about offering a solution which really meets a persons needs. People with debt problems have more needs than just the immediacy of getting rid of the debt. They have a need to live. In order to keep going there are certain other needs that must be met. What happens if they need a car and, of course, because of bad credit or lack of a cosigner cannot get one. What about credit restoration? Should the counselor tell them they have to wait seven years before the negatives on the credit report will improve? What about a credit card? Even a basic, secured credit card. It is very difficult to function in todays world without one credit card. You cannot rent a car, etc.

Frankly, non-profit credit counseling conveniently ignores these issues. Why? Because they do not have answers. They can only offer you budgeting education, and a debt management program, or even sometimes housing counseling, but nothing else. The legislators need to take a deep breath and start thinking of credit counseling in different terms. Smart companies have chosen to operate as for-profit credit counseling/referral companies. This allows the counselors to offer a wide array of debt solutions through strategic alliances with partner companies which offer programs more suitable or specific to a clients needs.

A client opting for a debt settlement program should know that the nature of the program is that the creditors will not be receiving money until it is time to settle the debts in one lump sum. So, this clients credit score, although 99% of the time already quite low, is going to need some credit restoration sooner than seven years. Is it possible? Absolutely. Many of todays more astute referral companies when enrolling someone into debt settlement will also enroll them into a credit restoration program. How about also offering a secured credit card and bad credit car loan.

The wave of the future in the credit counseling industry is for companies which can offer this array of life saving programs to the debt oppressed to truly allow them to achieve self empowerment.