Dear Debtor, is it your government or is it theirs?

For the past thirty-five years or so, my livelihood has been influenced, if not dependent, on credit and/or creditors. During those years, the GOVERNMENT has been 100% on the side of the CREDITORS. Nearly every presidential administration in recent memory has held us down while the creditors picked our pockets.

The signal for the beating we were about to get came when congress removed interest on debts other than mortgages from the list of approved TAX DEDUCTIONS. They foresaw the coming sharp increase in the use of credit and how much we were going to have to pay. If we were allowed to deduct it, the tax revenue gleaned would be significantly reduced. You bet your boots they were not going to stand for a cut in their take.

The next step was to abolish the usury laws. Former President Jimmy Carter led the way and all our state governments followed. Their reasoning said that our laws did not provide an attractive enough income for foreign investors. What a funny joke that was! Thank you Jimmy Carter for 36% legal interest rates instead of the old 8% legal rate.

Now "They," the congress and the President, in their wisdom have changed the bankruptcy laws to make sure the middle class American does not cheat the credit card companies out of their 36% interest and their 78 dollar ($39 for late pay and $39 for over limit) penalties. Neither are we allowed to walk away from medical bills charged by bloated medical facilities who charge us 2 or 3 times as much as they charge to the insurance companies.

Their reasoning seems to be built around the following scenario – Middle Class Joe charges $75,000 to credit cards and goes bankrupt. The poor credit card companies lose $75,000, and Joe keeps the items purchased. Now Middle Class Joe starts over and, within the allotted time, runs up another $75,000 and again, files bankruptcy. Poor, poor credit card companies – Government must protect them from Middle Class Joe. This scenario is not how most middle class Americans handle their credit. By following this strict model, many hard-working people are getting hurt by the system.

In light of this fact, here is a novel approach – make the CREDIT CARD COMPANIES responsible for their actions. When we apply for a 5% (secured) loan instead of a 36% (unsecured) credit card, they sure check us out. When their greed is assisted by government regulations, they feel free to wheel and steal and draw us in to more debt.

For instance, how did you get a credit card? It was offered to you by a credit card company! How did you arrive at your card’s credit limit? The card company told you what your limit was! How did you credit limit increase? You were sent a letter of congratulations, saying your limit has increased – a new limit for which you did not ask! It is definitely a dangerous time to be reliant on personal credit, which leads me to some important credit advice in regards to your business.


My Advice:
Do not use personal credit cards for business debt. More importantly, do not believe you are getting a business credit card if you are required to use your social security number. This type of card permits them to come after both you and your business assets if you default. A business credit card is issued, using the business federal tax ID number not your SSN. Any other way it is a personal card with your business as a responsible party.

If you attempt business debt relief using credit cards, you can be starting down a path to both personal and business financial disaster. If business debt begins to become unmanageable, consult a business credit repair specialist and learn what can be done. Business debt consolidation and /or business debt resolution could be the path to business debt relief.

Bankruptcy is something a business person or an individual wants to avoid at all costs, but bankruptcy was instituted as a safeguard for life, liberty and the pursuit of happiness. Financial problems probably lead to more families breaking up than even adultery does! These changes being made to the bankruptcy affect every wage earner who has or will ever need credit. They will only benefit the lending institutions who heartlessly apply the unfettered interest rules and special charges through the authority they have been granted.

What’s next Mr./Ms. Congressman, Mr./Ms. Senator, Mr. President Bush: debtors prisons and indentured servitude? We have been there and done that – It did not work then and will not work now.

Business debt consolidation, business credit repair and business debt relief are all terms we are learning to accept and prefer over bankruptcy, but when you take away the opportunity to choose bankruptcy, it becomes more difficult to bring the creditor to the table for a negotiated settlement. Laws that favor the wealthy corporations, who have the power of choice at the beginning, over the needy debtor, who must depend on the creditor, eliminates the need for compromise when troubled times arise. Be careful in this dangerous time for personal credit and remember that we are always here if you need help with your business.

- TheDebtDr
http://www.financialtechnologies.com/