Credit Counseling, and Living Debt Free - Educational Tools to help you safely and effectively reduce your debt!

WHAT IS DEBT AND HOW DOES IT AFFECT YOU?

Debt itself is not a very difficult concept, you borrow, or use something of someone else?s and until you return the favor to them, or make them whole again, you are in debt to them. If you fail to make them whole, or follow through on your intent to fill your ?debt? you would bare some sort of repercussion ? what that repercussion would be is based on the lender (the person you owe). This is obviously a very generalized version and would apply in any situation, from borrowing a friends DVD, to borrowing money from the bank.

How debt really affects you comes into play when you add the notion of interest. Interest is the price you pay for borrowing something. It extends beyond just making the lender whole, and moves into making them better than they were before you borrowed from them. When borrowing from any type of professional lender (Banks, Credit Unions, Credit Card Companies, Etc.) you are entering into an arrangement fraught with potential pitfalls and backlash. Lenders are For Profit Organizations that make money from the finance charges they levy on you (this includes interest rates, and the multitude of fees). If you are not wise with how you use credit, you can end up in debt (owing the lender) for many years, and payback several times what you originally borrowed. Putting it reasonably, if you borrowed a screwdriver from your neighbor, would it be reasonable for you to have to buy him an entire toolkit to make him whole again? This is a fair estimate since many people end up p aying 2 times to as high as 6 times more than the amount the borrowed.

Basically, debt locks you into an ongoing cycle of owing money. It takes potential future income and applies it to things you have already done or purchased. It limits your ability to invest in the future and it takes your ?legs? out from under you.

WHY LIVE DEBT FREE?

Why live WITH debt? Living debt free is more than just a financial state of being it is a state of mind in general. It also gives you the chance to make MORE money (since that is the goals of working) because you are not stuck in a cycle of paying interest. It is the ability to live with a health balance of desire and temperance, reason and impulse. Living debt free also provides more than just financial equilibrium, it give you what many will call ?legs.? The ability and resilience needed to make strong financial decisions.

For most people stuck in the cycle of borrow and owe, they feel like opportunity is always passing them by. Opportunity is one part state of mind and one part legs. Knowing when something is a good opportunity is only part of the equation. If you don?t have the cash needed to act, it does you no good at all. Having no debt means that you are able to set money aside, buil d a safety net, or an investment portfolio. It gives you the opportunity to put your own cash in your hand and then the ability to use that to invest, or to put away for retirement. As long as you steer clear from amassing any more unnecessary debts, you can work toward building your finances and create a renewing cycle of opportunity on your own.

HOW CAN WE HELP?

Hundreds of thousands of Americans are stuck in the seemingly never-ending cycle of unsecured credit debts because of payment plans using the prescribed "minimum payment." The costs of this practice are immense ? and usually results in a lifetime of payments. This is where the Credit Source comes in. We work with you on two levels, education and financial referrals. At the Credit Source me maintain a network of highly reputable Debt Management and Credit Counseling Firms. When you apply we screen your information to find the agency that will best suit your needs. Your application is then forwarded along and you are contacted by a certified (NIFCE?¨ or AICCCA?¨) credit counselor. They will speak with you about your situation, evaluate your options, and should it be feasible recommend a DMP which will allow you to consolidate your debts by negotiating better terms, lower your interest rates, and have your debts completely paid off, often within one-quarter the time of doing s o on your own. A Credit Source Recommended Debt Management Program provides you with a real alternative to never-ending minimum payments.The Credit Source Debt Management Referral Program has helped thousands of Americans get their finances back on track without damaging their credit or taking out a loan. Your information is handled with complete confidence and will only be seen by the qualified agency you speak with.Our mission is to provide people with beneficial educational resources and access to the highest quality debt management companies that will work with people on an individual level to resolve their issues with credit, debt and budgeting. We strive to maintain fiscal integrity and utilize the highest quality standards in the industry when evaluating potential companies.

HOW DO I GET THE BILL COLLECTORS TO STOP CALLING ME?

If you have defaulted on any of your bills at one point in time or another you know the pressure that bill collectors can put on you. The best thing to do when faced with a stressful situation like this is to be proactive with your debt. In many cases creditors might have a hardship program in place where, if you qualify your payments may be reduced or suspended temporarily. The debt will not go away on its own, so if you have experienced a major shift in your situation contact your creditors.

If you have fallen more than 4-7 months behind and your accounts have been sent to collections, keep in mind that you still have some rights. Below you will find information on what collectors can and cannot do, as well as a copy of the FDCPA (Fair Debt Collection Practices Act).Collection agents cannot do any of the following:

• Harassment
• False Representation
• Unfair Practices

Harassment

Collection agents cannot harass you with annoying or abusive phone calls and must disclose their identity to you. They are not allowed to use obscenity or use or threaten you with violence. Collection agents are not allowed to publish any of your information indicating that you have been delinquent on your payments, except to a consumer reporting agency or government agency that is authorized to this information. They are also not allowed to coerce payment of your debt through unlawful means.

False Representation

Collection agents must not fraudalently represent themselves to you to try and trick you into paying your debt. They are not permitted to use false names or pretend to be a credit bureau, attorney, or government representative. They are not allowed to imply that you have committed a crime, or indicate that you will be arrested for because of your debt. They are not allowed to threaten you with legal action without sufficient legal grounds. They are not allowed to say that your property will be seized or sold unless a collection agency intends to do so (this must have sufficient legal grounds). Collection agents are also not allowed to send documents that falsely appear to be legal forms or government documents.

Unfair Practices

Collection agents are not allowed to collect more than the amount that is owed to them, unless their exists a special charge for collections (your state law will determine this). A collection agent may not contact you through postcard, or make you accept charges for collect calls or telegrams. They are also not allowed to deposit a post-date check prematurely.