For those that don’t know what a Ponzi Scam is let me refer you to SEC website.  The SEC website states a ponzi scheme as, “Ponzi schemes are a type of illegal pyramid scheme named for Charles Ponzi, who duped thousands of New England residents into investing in a postage stamp speculation scheme back in the 1920s. Ponzi thought he could take advantage of differences between U.S. and foreign currencies used to buy and sell international mail coupons. Ponzi told investors that he could provide a 40% return in just 90 days compared with 5% for bank savings accounts. Ponzi was deluged with funds from investors, taking in $1 million during one three-hour period—and this was 1921! Though a few early investors were paid off to make the scheme look legitimate, an investigation found that Ponzi had only purchased about $30 worth of the international mail coupons.

Decades later, the Ponzi scheme continues to work on the “rob-Peter-to-pay-Paul” principle, as money from new investors is used to pay off earlier investors until the whole scheme collapses.”.

But isn’t this the same thing that the social security system is doing.  We as taxpayers pay the social security and that money goes to pay this generation of retired individuals as a return on what they payed into the system during their working ages.  But not only that the social security money is moved all the time to take care of other bills that may come up in congress.  Some people would say that this is not the same as what Madoff was doing.  But it sound the same to me..

Referencing the article by Nina Olson: National Taxpayer Advocate Urges Tax Simplification and Compassionate Treatment of Taxpayers Hit by Recession

She is urging the IRS to be a little more forgiving to tax payers that have been hit hard by the continued slump in the housing and employment markets.  In a report that she authored she outlines the serious misfoutune the taxpayers have burdaned upon them and urging Congress to greatly simplify the tax code so that individuals don’t have even more of a burdan thrust upon them after losing homes and their means of making an income.

In her report she outline three distint recommendations for struggling taxpayers.

1. Instead of creating leans and taking individual home, concentrate on putting together programs that offer compromise and partial-payment installment agreements.  She believes this is a better approach to taking homes.  She references a study from the 2000 to 2007 records of home take.  She states, “The number of levies issued by the IRS increased by 1,608 percent from FY 2000 to FY 2007 — from 220,000 levies to about 3.76 million levies — yet the increase in the total collection yield during the period was slightly less than 45 percent.”
2. Put together a simple plan for those who default on debts and still have an increasing tax bill.  Individuals that lose their homes to foreclosure, can’t pay their credit cards or pay their car notes have no idea that their delinquency may increase their tax liabilities.  Creditor write off debt when they have to foreclose on homes or close credit cards.  This canceled debt in most cases is shown as taxable income to the debtor.  And as such increases the tax bill.  Exclusions are available but they don’t come automatically.  The debtor will have to fill out tax form 982, Reduction of Tax Attributes Due to Discharge of Indebtedness (and Section 1082 Basis Adjustment), to claim an exclusion.  Olson recommends as stated in the report, “Olson recommends that Congress change the law to remove taxpayers with modest amounts of debt cancellation from the cancellation of debt income regime, and she recommends that the IRS develop an insolvency worksheet that taxpayers can file with their returns and create a centralized unit dedicated to handling cancellation of debt issues.”
3. Here last recommendation is to implement a screen like the Taxpayer Advocate Service (TAS) to help individuals that are unable to pay their tax responsibility.

There are some widely held beliefs about debt, money management, and other personal finance topics that aren’t etched in stone as we’ve been lead to believe.

Could it be that these pseudo truisms have, in fact, been nothing but fiction all along?  The financial stakes are way too high to be taking these bogus notions as fact.

Let’s take a look at four of the more common beliefs.  The truth may surprise you.

Fiction:  Bankruptcy is the easiest way to just start over from debt problems.
Fact:  Nothing could be further from the truth.  For anyone facing the prospect of bankruptcy or already in the process, life can be a living nightmare.  Bankruptcy can devastate your career, destroy your marriage, and hurt your health and well-being.  Bankruptcy is a life-altering event that has long-lasting effects.  Few people who have been through the bankruptcy process would say they came out of the experience unscathed.  The bottom line is that bankruptcy is painful, humiliating, and a huge disruption to almost anyone’s life.  Your best option is to consult with a CERTIFIED FINANCIAL PLANNER professional to discuss other possible solutions to get out of debt.

Fiction:  Leasing is a good strategy to acquire a vehicle.
Fact:  A survey of top financial professionals and a calculator would tell you that leasing can end up being the most expensive way to acquire a vehicle.  Today, most new car transactions are completed by way of a lease.  Leasing is simply a “rent-to-own” strategy.  If you do the math and factor in the high capital cost, down payment, fees for acquisition, disposition, excess wear and tear, and excess mileage, plus other charges not mentioned, you’d be shocked at what it can ultimately cost.  Break free from the chains of leasing.  Find a way to save $300 a month for two years.  Then, at lease end, go and buy a used car for cash.  Downgrading from a newer to an older vehicle may hurt the ego for awhile, but that’s a small price to pay to travel the road to financial freedom.  Continue to save $300 a month for another two years.  Then sell and upgrade to a newer vehicle for cash.  A key factor in building wealth is not having a vehicle payment.

Fiction:  Counting on a large income tax refund each year makes financial sense.
Fact:  No, it doesn’t.  It’s good that you have your income tax liability covered each year but you’re letting state and federal government entities use and invest your hard-earned money for free.  A better strategy is to plan for less of a refund.  Then, take those extra paycheck dollars and put them to work for you rather than the government.  Contribute to an employer-sponsored retirement plan or set up an Individual Retirement Account (IRA) annually. Both of these accounts grow tax-deferred.  Also, if you haven’t established an initial emergency fund of $1,000, now is the time to do so. Having a reserve available for unexpected events such as car or home repairs will provide peace of mind.

Fiction:  An adjustable rate mortgage (ARM) makes it easy to buy a home
Fact:  Maybe for the first year or so.  But then the financial squeeze begins.  Make sure you brace yourself when you get the notice of an upward “adjustment” to your mortgage payment.  The loan that made it possible for you to move in may now be forcing you to move out.  It’s not unusual to see a dramatic increase in an ARM’s monthly payment.  Adjustable rate mortgages are one of the major reasons for record foreclosures and bankruptcies today.  A fixed rate mortgage where principal and interest payments remain the same over the loan term, is a much better strategy.

Rob Smith, CFP and President of Debt Mentors, LLC, devotes his financial planning practice and website to helping people with money management, debt elimination and wealth building strategies. For over 20 years, he has worked with individuals, families, small business owners and financial institutions.

http://DebtFreeLivingPlan.com

Many of us have 2-5 credit cards. When you have so many cards sometimes you only knew
your limit max out when you are about to use one of them. The cashier said “Sorry Sir/Madam your card has a problem the transaction cannot go through”.

You might have 20k-50K Credit Limit on your cards. Imagine the amount of interest you have
to pay. Most Credit Cards charging between 10-18% compounded interest on your outstanding
balance.

Assuming that you have 50K outstanding balance, even with 10% interest you have to pay more than $400 of interest monthly plus you have to pay the minimum payment. So what can you do this reduce the Interest you are paying monthly?

They are various means to do this by consolidating your credit card outstanding balance.
Some Credit Cards Companies will give you lower interest rate if you transfer your outstanding
balance to your new credit card. They might charge 4-6% monthly on the balance you transfer.

You also can shop around with various banks to get a low interest bank loan. The thing to
look for is APR (annual percentage rate) of the loan you are applying. The APR must be lower
than the interest you paying for your credit cards debt.

What are the loan criteria’s to look for?

1. The APR must be lower than your credit cards Debt APR.

2. Try to get APR that is consistent through out your loan tenure.

3. Be aware of variable APR that the bank offer. This could be a trap. Some banks might

offer 0% APR for the first 6 month and charge higher APR thereafter. Remember criteria no.1

4. Make sure you have enough budget to pay your monthly payment.

Remember that consolidating your credit card debt is the first step to get yourself out of debt. This step is only beneficial if you reduce your credit card spending. Keep paying your credit card regularly, control your credit usage. Buy only things you really need. You must set your targets and have disciplines to follow to make sure your achieve your goal.

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‘Ah, home sweet home.’ You think to yourself as you pull into the driveway after a hard day’s work. Finally, Friday has arrived and it could not have come sooner after this very tiring week. You climb out of your brand new SUV and walk through the door into the kitchen. The family is scattered throughout the house and you go to greet each one.

The significant other is in the office looking up the menu for that new restaurant downtown. They have a bacon wrapped fillet that already has your mouth watering. Now the hunt is on for the kids. You find the oldest in his room listening to music and talking to his girlfriend on the phone. You say hi and abort ship because he is planning on going to the mall and that always leads to some form of begging.

Finally, you seek out your daughter. She is guaranteed to be where you want to end up…the living room. Your suspicions pan out to be reality. She is watching some cartoon and lying on the floor. After giving her a hug she cuddles up next to you on the couch and you watch the television together.

Sounds like a pretty typical day, doesn’t it? In the course of ten minutes you went from your car into your home and all throughout. Think of all the things you touched and saw and all the things that were in use by your family. There were all those plans being made which involved dinner and shopping. All of these things cost money. Sometimes we actually own those items and other times they are owned by a bank or creditor. How many of these items that you passed are owned by you?

We all want money. It seems like every time we look around there is something about money. Most of our decisions are based off of how much things cost. There are those that will drive an extra mile or two to save a few cents per gallon of gas. Those few pennies saved will make up for all those items that we just bought on credit. Isn’t it fun to fantasize about having the big house on the block or living on the beach? Why is it, then, that we bury ourselves in debt?

We use credit cards to buy clothes and jewelry. It is unheard of to buy a car with cash in today’s world. Who is the last person you know that actually saved the 20% for a down payment on their home? Who cares, we will always be in debt? If you like living paycheck to paycheck, then stop reading right here.

For everyone else, I am going to try and help dismiss some of our current myths that we all are brought up to believe. Also, we are going to discover some different ways of looking at things to help us make our money work for us. Many of the things you read will be VERY tough to swallow. We all need to be honest with ourselves before we can ever make a change.

First things first, we need to get to the root of the problem. We all have a fascination with material things. We are constantly trying to out-do the Jones’. This here was tough enough in the old days but nowadays there is a new Jones family. Celebrities.

Tabloids talk about the multi-million dollar homes and luxury cars. Television bombards us with the newest fashions worn by the A-List stars. Trends are set by what the popular music stars are doing. These are now the Jones’ that we are trying to keep up with. We tend to forget that we are not making the same income as them. When you break it all down they are spending a small portion of their budgets on these items.

Now back to us. We want to have these same things. We want to appear to have money. The ironic thing is that we are willing to go way into debt to present the image that we are rich. Being in the military, I have seen this played out hundreds of times. Brand new enlistees are finally getting a steady paycheck, some for the first time ever. They see they have $800 a month after taxes. They go buy a car, with no credit history, that has a payment of $400+ a month. Take into account that their insurance is sky high because they are newer drivers. Now we are looking at roughly $650+ a month!

Almost an entire month’s pay goes to a vehicle. This then starts the downward spiral. ‘You can not drive a car this fly wearing these old rags.’ There is not any money left over for clothing, what do you do? Get a credit card! Whew, you almost were stuck in a rut there. ‘This credit card balance is too high to pay,’ so you pay the minimum payment each month which gets you nowhere.

This example has not even touched all of our gadget fetishes and entertainment “needs.” I haven’t discussed those paying rent or mortgages. The trend here is the important part of this scenario. The moral to this story is that we are more worried about looking like we have money than actually having it.

To learn more about getting out of debt and securing your financial future go to: http://www.inspiretomorrow.com/Books/ebookstore/moneyfortomorrow.html

Joe Lawrence is the creator and president of InspireTomorrow.com. He is a true student of life and is a firm believer in the whole person concept. If you spend five minutes on his site you will come out inspired! http://www.inspiretomorrow.com

First of all, there are going to be many that choose to stop reading this article right away because it disagrees with their basic instinct as to what debt is for. In fact, it may very well go against many of our own financial paradigms; that is to say, using debt as a tool to leverage our chances of financial independence is a poor choice.

For those of you who may disagree… just take a minute to hear me out.

I’ve heard debt describe as a “two-edged sword.” In other words, debt can be used for a lot of good, improving the financial status of many, OR it could be used to cut the individual looking for the leverage it may possibly offer, crushing that person’s financial situation completely.

Some term it OPM (Other Peoples’ Money); others may call it a good, low-interest credit card. Whatever the case may be, if you’re using debt to put you in a better position financially, you may want to think again.

I’m not saying you can’t make money using debt; people do it all the time! But at what cost?!

Have you ever heard of the person that uses real estate debt to make money? I have. Do they actually do it? Yeah- some probably do. How about using a credit card to finance a short-term business investment? Ever heard of that one? I have too. Or what about going into debt to finance a business that doesn’t have a thought out business plan?

For every ONE person that makes debt a real tool to leverage a better financial position, there are literally hundreds that end up in a much worse spot.

Again- this brings me to the same point brought up at the beginning: Debt brings plenty of risk, enough to offset the perceived benefits that may be actualized.

Don’t risk it; be smart. Go into debt for a home- that’s it. Everything else needs to be handled differently. Unless you’re getting a real loan from a bank that, as a prerequisite, requires you to put together a very comprehensive business plan, don’t go into debt.

Trever Shipp, the author, works as an online business consultant, student, husband, and business owner. Follow his personal finance blog and see how he and his family take finances by the horns and steer them to success.

Debt management/fixing credit is an important skill that many parents and schools neglect to teach. Having a bad credit score is one of the worst things you can have on your shoulders, particularly if you are trying to get a job, buying a car, or buying a home. Bad credit makes applying for new credit cards and loans living nightmares. If you have bad credit and have lost all hope, there is a light at the end of the tunnel. Here are a few debt management/fixing credit tips that you can start applying today to begin fixing your credit.

Stop using your credit cards

People don’t want to lend you money because you have a bad reputation of paying it back, so first thing’s first – stop using your credit cards and accumulating even more debt. Put your cards away, start using cash, and start paying off your debts. Don’t apply for new credit cards or loans either as rejected applications will reflect poorly on your credit score.

Get a recent copy of your credit report

You need to know what exactly you’re up against before you can begin applying debt management/fixing credit techniques. You can obtain a copy of your credit report from each of the three major credit bureaus to find out which of your accounts are most problematic and need to be taken care of first. You can also get request these online and get them emailed to you for faster delivery.

Check the accuracy of information

If you believe that your credit report contains incorrect information, you have the right to contest it and have it removed. It is common to have some minor inaccuracies once in a while due to technical errors. When you order your report it will come with information of how to do this.

Get current on delinquent accounts

35% of your credit score is made up of your payment history. Getting current on delinquent accounts will significantly improve your credit score. Many creditors will even help you get started and offer programs that reduce your monthly payments temporarily until you can get the ball rolling. Also, do not close your delinquent accounts. It may seem like a good idea, closing delinquent accounts negatively affect your credit score. It is better to keep them open and then close them later if you still wish to do so.

Get professional help

There are many organizations out there that can offer you debt management/fixing credit assistance if you are not sure about something. These types of services are called consumer credit counseling. You can find these offices through the National Foundation of Credit Counseling.

Debt management/fixing credit is an extremely daunting task and will require a lot of perseverance. If you do not fix your credit it will haunt you in almost every aspect of your life. Since bad credit stays on your record for seven years, it is difficult to escape and the best solution is to face the problem and fix it. Follow these few simple tips listed above, and take the first step towards rebuilding your credit.

To get more tips on debt management and fixing your credit and learning how to make money online please feel free to visit my website at Creating an Effective Internet Marketing Plan

information is listed. Lack of information will frustrate the customer, and will often bail from the sales process to search of a more easy to navigate site.

Following these five basic steps of internet marketing will considerably increase your website traffic. You will quickly generate credibility and trust with your customers, and this is the most important part of building a strong customer base.

To learn more about debt management and fixing your credit as well as making money online in general please feel free to visit my website at at http://www.moneymadeonline.info/

Mark Hamilton has spent many years researching various methods of making money online and applying various methods. He has developed strategies and techniques that can will make you money both online and offline. For more information and a free report you can visit his website at: http://www.moneymadeonline.info/

Generally, to assist the debtors, the companies offering these services assign councilors or financial experts. The main task of the financial experts is to assist and educate the debtors to handle the debts in a systematic and appropriate manner.

This debt management program is an online service, which mainly assists in looking after the multiple debt problems and according provides solutions. Since the services are mainly available online, a debtor can easily obtain the services by remaining confined to the office or office. All that the debtor needs to do is to go through the various websites offering these services.

In the financial market, there are numerous companies who are offering the services of debt management online. Now it is up to the debtor to choose the best debt management company. There are some factors that must be kept in mind while availing the services such as the extent to which the services are offered, budget allocated etc before taking the services of a particular company. In this regard, it is the financial experts who after looking in to debtors present financial circumstances, suggests the best advice.

Along with these services, debt management also offers the services of debt negotiation and debt consolidation. With debt negotiation, the financial experts on behalf of the debtors negotiate with the lenders to lower the interest rates on the debts. With debt consolidation; the debtors get to consolidate all the multiple debts in to a single manageable amount. Consolidating debts is considered to be the best option to remove the debts as it enables the debtor to make single monthly payment at reduced rates, rather than making multiple payments.

Online debt management provides a way through which a debtor can easily manage the debts and remove it in an appropriate manner.

Tess Ocean has been associated with Easy Debt Management.

Having completed her Masters in Finance from Yale University, School of Management. She provide useful advice through her articles that have been found very useful.

To find Online Debt Management, debt management, debt management services, easy debt management visit http://www.easydebtmanagement.uk.com/

To be fair, however, choosing to eliminate your debt and achieve financial freedom with a counseling agency involves a careful analysis of just how much you owe and whether or not you think you’ll be able to stick to your own meticulously devised debt management program and payment schedule. If you want to stay on track, you have to keep yourself going – will you be able to do that alone? The answer should be affirmative if you are serious about getting out of debt. The way that debt reduction counseling services operate is to take one monthly payment from you and then distribute this money among the creditors with whom you have an outstanding balance. The agency has succeeded in securing lower payments and interest for you; however, your credit is now worthless, and you might as well have filed for Chapter 13. If you want to keep your current credit from sinking even lower, don’t use a debt counseling agency to achieve the financial freedom you are seeking.

Achieve Financial Freedom on Your Own

The best way to eliminate your debts and achieve financial freedom is to sit down and devise your own debt management program. The best advice in this case is to make more than you spend, and while you’re thinking that’s quite an obvious statement to make, sometimes it takes a bit of bluntness to make this reality set in. Not only will meticulous planning save you time and, more importantly, money, but it will provide a degree of pleasure in having accomplished a number of your credit hurdles as well. The only truly effective way to get out of debt and achieve financial freedom is by making your own carefully constructed budget and debt management program, and as scary as that might sound, it’s easier than you think.

If Push Comes to Shove

In case of an extreme debt crisis, you may be forced to work with a debt counseling agency in order to achieve financial freedom. Here are some things you should consider:

* The debt counselor and agency are there to make money. While they’re offering a handy service, remember that they’re not there just for you – so take advantage of the situation. Ask questions and use the counselor’s offers for credit assistance much as you would any resource.
* Make sure you have a counselor you feel comfortable with and that you have one who will attempt to go the extra mile for you when necessary.
* If offered a loan (loan consolidation) to pay off your existing debts, ensure that you can pay the monthly payment. Research the interest rates, fees, and terms of the loan, and don’t settle if you’re not happy.
* Understand the particulars of your debt management program and how they approach paying off debts to your creditors. An ideal debt management program deals with all of your debts – picking and choosing who to pay is no longer an option.
* Evaluate the cost of the debt management program thoroughly – is it really beneficial to pursue a service that helps you get out of debt and achieve financial freedom by charging you ridiculously high fees to do so?

Remember to think this approach through – aside from destroying your credit, you are responsible for more payments, making it harder to get out of debt and achieve financial freedom effectively.

Better Alternatives to Debt Reduction Counseling

With over 60% of credit-card holders carrying a balance (1), there are many others fighting the same battle against debt. Congratulations if you’ve decided to tackle the problem on your own. You are now in charge and are personally responsible for your own debt management program. There are a few ways to start on the path to achieve financial freedom:

* Acquire a copy of your credit report to begin monitoring your current activity but also to catch up on what’s been happening with your credit thus far.
* Stop using your credit cards immediately. Remove them from your wallet so you aren’t tempted to use them.
* Create your own payment plan and debt management program by consulting your creditors one-on-one. They may be able to work something out with you in order to reduce your monthly payments.
* Construct a monthly budget and outline who you will pay and how much you will pay each billing cycle.
* Do not cancel your accounts – this is a harmful action and could negatively affect your credit score.
* Resolve to be devoted to paying off your debts until they are all gone – start with smaller debts first and work your way up. You’ll be pleasantly surprised with the results. Cut frivolous spending in order to achieve the financial freedom you’ve been dreaming of, and you’ll see a change in your credit in due time.

Using your own knowledge and planning skills can help you eliminate your debts and achieve financial freedom. Change won’t happen overnight, but you must be dedicated to paying your creditors with a finely-tuned debt management program until the situation is resolved. It’s not an easy path, but it’s a necessary one for financial and personal responsibility.

Sources

1. http://www.smartmoney.com/debt/advice/index.cfm?story=digoutofdebt

Darrel Giann, a financial consultant and businessman, is the founder of Just $14.95.com, a website that helps people earn extra income by embarking on a career in finance. Giann, who faced financial struggles in his own life, now works to teach others how to get ahead in life, eliminate credit card debt, and achieve financial freedom. For more details or to begin making money for yourself, please visit http://www.Just14-95.com.

First, know that you will have to pay back your debts. They are debts for a reason and you will have to pay them in order to get them off your credit and taken care of. Your plan should include paying off the smallest ones first and the largest ones last. This helps your credit quicker and will allow you to see the progress you are making. It also is easier to pay on a smaller debt than a larger one.

Second, you will want to start living on a budget. Your debt management plan should include a monthly budget that is broken down into a weekly budget. It is important for you to get this budget set up so that it includes savings for emergencies, Christmas, and other occasions. These savings will allow you to have a cushion and will allow you to be in much better shape than if you did not save at all.

The last thing to expect with debt management plans is that they are not easy and they will take discipline. You will have to sacrifice some things, work a second job, or your wife might have to go to work. These are all things you might be asked to do while you are getting your debts under control. You just have to understand that you are on the road to a better life and better financial future.

Get all the information you need on Debt Management Plans here: Debt Management Plans