When the Housing and Credit Crisis Will End

We have seen over the last few years a financial crisis unlike anything seen since the Great Depression. The American people are in nearly $1 trillion of credit card debt, $3.3 trillion in consumer debt (all debt excluding mortgages) and if we throw mortgage debt in we are at $12 trillion. To put things in perspective, when Bill Clinton was running for office in 1992 the call to arms was formed around our national debt, the debt our nation owed other nations, which was published at that time to be $3 trillion. Now our consumer debt is there and one third of that is credit card debt. As a nation we have become like a ravenous animal with a tape worm and the only thing that satisfies is our consumption of more goods. We have become insatiable with materialism and have become a freight train of spending with no engineer, going 100 miles an hour off the track. In 2005 18% of sub-prime borrowers defaulted on the very first mortgage payment (The Debt Advocacy Center). There were 1million foreclosure filings last year and 400,000 in the first quarter of this year (National Realtor Association). On top of all that Bankruptcy filing were up 38% in 2007. This all sounds very gloomy and it is, however it is not hopeless. We also have an opportunity to make changes in our lives, get out of debt, help others do the same and as a nation we can become stronger through this. However, the individual must act with sound judgment, discipline, conviction and perseverance. We must get ourselves out of debt and the faster the better.

There is basically two types of debt, unsecured and secured. Unsecured debt is anything that has no tangible item that can be taken as collateral. Credit cards, medical bills that are in collections etc. Secured debt is home mortgages, car loans, boat loans etc. In terms of eliminating debt you always want to eliminate credit card debt first. Why? It uses compounding interest to determine your payout as compared to simple interest. Mortgages are calculated by simple interest. If you had a $100,000 mortgage over 30 years you would pay back at the end approx. $165,000. The same amount on a credit card would calculate to nearly 40 years and approx $250,000. Why? Because of the difference between simple interest and compounding interest. Bottom line, we need to get rid of credit card debt. The banking industry has enslaved the American public through credit cards. We need to take the proverb "the borrower is a slave to the lender" to heart and be debt free.

Part of the problem is there are so many sharks out there how can anyone know what is a wise choice for help. If you are behind in unsecured debt and need settlement, there are plenty of companies out there to help, the only problem is they want to charge 10% to 15% of your debt before they do anything for you. If you owe $15,000 you have to come up with $2,250. Heck, if I had that kind of money I wouldn't have the problem and wouldn't need their help. Bankruptcy is an alternative, not a nice one, or even a good one, but it is a legitimate one for some people. It has become much more difficult to get since the laws changed in 2005. The fees are usually around $1500. I know someone that had to go bankrupt, they had no alternative and the attorney needed to be paid first. They put it on their last credit card that was opened. Kind of funny don't you think.

Any way I work for a company called SmartFin Benefits. We came out of the debt industry and took a long hard look at how things are done. We didn't want to do business as usual. It was unfair to the consumer who is in crisis to take advantage of them while in such a fragile state. So, we developed a way to offer much needed services, for a fair price and give them the help they desperately need. How? We have partnered with attorneys, certified credit counseling agencies, certified master's degree level counselors and other professionals. We offer a financial wholeness membership that entitles our members to the services of all our professional partner's at either a flat rate or dramatically discounted fee. If a member needs settlement our attorney providers have agreed to a very affordable flat fee that is built into the members monthly budget creditor payment. If they need foreclosure help our mortgage mitigation partner gives a huge discount. If they are not in debt crisis but want to get out of debt, our debt elimination partner gives a 50% discount on their fees. Why? There is power in numbers. We are basically marketing our providers services at no cost to them, so in turn they pass the savings on to our members. All our providers are top notch professionals and many are nationally known. In addition, we give our financial wholeness members a ton of other benefits like, education in money matters to help them be financially wiser and more responsible, discounts on a multitude of products and services, gas rebates, dental plans and more. And it is all incredibly affordable.

We are presently looking for business people and entrepreneurs that would be interested in partnering with us by becoming a SmartFin agency. We offer a liberal compensation plan with residual income. You can have a great business and the satisfaction of providing much needed services, that is affordable, fair and genuinely helps people become debt free regardless of their situation. The timing could not be better. This is an incredible opportunity for entrepreneurs, not just because they can earn a great living, but because they are providing a desperately needed service fairly, honestly and ethically. What could be better than that.

Hope to hear from you soon. Feel free to share your thoughts on the economy, the banking industry, the debt services industry or any other related topics. You can contact me at phill@smartfin.org for information on becoming an agency owner or on how you can get out of debt.

Wherever we are in life we must decide to be part of the solution, if not we are part of the problem. If we don't decide to change our financial course we will continue to be part of an ever growing problem. Join us today and declare war and debt; become debt free, enjoy life without the burden of debt. Enjoy your life to the fullest!

Phill of FL 10:56PM August 28, 2008