Many of my clients are having a really tough time with their finances in this terrible economy. With unemployment rates the highest that most of us have ever seen in our lives, and a tanking economy, some folks have had to resort to credit cards and other forms of debt to survive. What many people don't understand is that much of our terrible financial situation is caused directly by the irresponsible, predatory and usurious lending techniques perpetuated by large corporate banks; with credit cards being their primary way of taking advantage of those who have lower incomes or are unable to get jobs.
This article serves two purposes: 1) to teach you about the immoral way that banks have been sucking the American populace dry as well as how to exercise your rights to stick it back to them and 2) to couple rootwork and with practical financial advice to help you create real prosperity in your life. Before we get into the meat of the discussion let me go through some basic ideas that this article is founded upon.
Debt Equals Slavery
Remember this concept as we continue with our discussion on debt elimination and building prosperity - debt equals slavery. As long as you owe money to a bank or any other lender, you are enslaved to them and have given up a large part of your freedom and flexibility. If you stop working for a company without a back up plan, you can't pay your debts, the lenders start sicking debt collections agencies after you, and they hit your credit report with terrible marks. What most folks don't realize is that most companies check your credit report before hiring you to work for them, and if you have bad credit, they will pass up your job application for someone with a better credit score.
The snowball effect of this is simple. You incur debt. You work to pay off that debt. If you quit or are laid off, you can't pay your debt. Your lender dings your credit report. Your bad credit means you can't get a new job. You end up unemployed for a very, very long time. There is a whole segment of our population that is encountering this obstacle this very moment in time.
So how does debt exactly become slavery. It's really not that complicated. In a bad economy where banks aren't lending to companies, the companies are unable to make small loans to smooth out income and make payroll. They consequently have to lay people off. The remaining employed people have to take up the slack of those who have been let go. They don't dare leave their job because they have their debts to pay, so they end up over-worked, terrified of leaving their jobs, and unable to find new ones in what little spare time they have.
Different Kinds of Debt
There are many kinds of debt and it is important that you know the difference between them.
Secured Loans
First there is a secured loan. This is a loan where you put down some kind of collateral item. If the loan isn't paid, the lender puts a lien on the item - be it a property or some other valuable thing. If the lien isn't lifted, the bank will just take the item, ruin your credit report and you're off the hook. A great example of this is financing on a car. The car is the very thing securing the debt. If you don't pay the debt, they take the car - end of story.
Unsecured Loan
The most common type of debt out there. These are typically loans taken out with nothing more than your signature. These loans are based off of your credit score. If you have a high credit score the bank feels you are responsible enough to lend the money to you on your reputation alone. Credit cards are a form of unsecured loan. If you don't pay the loan the bank has nothing to collect, but they can sue you in court and get a judgment against you if you don't pay them. However, they are also the riskiest form of lending from the bank's perspective for they have nothing to fall back on but your reputation.
Student Loans
Student loans are a type of debt that is completely inescapable. You MUST pay off student loans of all types. You can't use a bankruptcy to escape them. You are always on the hook for a student loan. Sadly, these are becoming the biggest form of loan in the last five years and there are currently students on the hook for tens of thousands of dollars borrowed from the government that they cannot get out of. If these students can't get jobs they are on the hook to pay these loans no matter what.
What's About Savings?
Many people seem to think that savings are the way to go when it comes to growing finances and making money. This is largely incorrect - not in principle, but in application - and here's the reason. As long as you have debt you're not saving money. Debt always charges a greater interest rate than any savings account out there. If you're saving $50 a month to a savings account, but you're paying a $200 minimum payment to your credit card company, you haven't saved a single thing. You have a net -$150 that you're bleeding out every month. Actually you have a total of $250 of income that you aren't using. Where, if you were to focus your money on paying off the debt first, you'll get that debt off your back, you'll avoid long-term interest charges piling up on your account, and the risk of late fees. Additionally, once your debt is paid off, then your $50 you're saving a month will be a +$50 instead of a -$150. It's simple math.
There is something to be said, however, for a small savings account put aside for unexpected expenses like a popped tire or emergency dental work. These will help you avoid debt in the long term. How often have you heard people say "I keep my credit card for emergencies"? This is the biggest self-delusion that I've seen in my years as a reader. The "emergency credit card" invariably gets used for unnecessary holiday extravagances or for that "one cute dress I really need". You're better off stashing $500 in a coffee can for those emergency moments. At least your payment for tires won't come with 30% interest. One great way to do this is to place your money in a coffee can or little box. Put a
lodestone dressed with
Secure Finances Oil in the can along with the cash and a good pinch of
magnetic sand to feed the
lodestone. Whenever you add money to the can give the
lodestone another pinch of
magnetic sand. Keep that there and don't take the money out unless it is an unforeseen problem or emergency. Never give that money to anyone no matter how desperate their situation is. You're saving your money and fixing your finances - let others do the same for themselves.
Aside from a small emergency savings, you're better off focusing your money on paying off whatever debt you have as soon as possible. The moment your debt is paid off you've just given yourself the gift of financial freedom.
Credit Cards are Evil - You DO NOT NEED THEM!
Sometimes life happens and you get a bit behind on your debt payments - namely credit cards. This is actually part of the design and the banks craft their credit card services in such a manner that the consumer simply cannot win. They offer you 0% interest for 6 months with a tiny caveat that the moment you are even 1 day late on a payment they will bump the interest rate to their normal rate of 30%. Another common practice is to change the terms of your account without your consent. This often takes the form of the bank reducing your credit limit - even if you've been a perfect saint - taking it down to the point where you're dangerously close to your limit. So a $100 purchase of even one late bill will take you over your limit and they can then begin charging you an over-limit fee on top of your late fee. On top of this banks will often charge an annual fee to even use the card!
It is also interesting to note that the bible contains regulations against the charging of interest on loans with rare exceptions. (
Exodus 22:25-27,
Leviticus 25:36-37, and
Deuteronomy 23:20-21) This practice is called usury and there used to be many laws in the United States against usury. They have disappeared over the years as big banks have paid off politicians to have them removed in exchange for large donations to their campaigns. Currently usury limits and definitions vary from state to state but apparently there is little care for consumers when a 30% interest rate is considered fair and legal.
Many of us have been sold a fiction that you need credit cards to function in life, either for emergencies or to build up your credit score. When I went to college ten years ago there were kiosks set up to sign students up for credit cards with $500 limits that started at 20% interest but shot up to 30% if you made one late payment. This practice is abominable but it got the banks what they wanted - early debtors that they could enslave for their own profits. Many of my generation are still paying off these credit cards and haven't made even a dent in the balance almost ten years later.
I have personally operated for the last 8 years of my life without a single credit card. I use my debit card so that if there isn't any money in my account the transaction will not go through. I paid off the last of my debts - a student loan - about two years ago. Now, if I cannot afford something I don't buy it. If I want to buy something, I start saving for it. It really is as simple as that.
One great spell you can do as you are paying down your credit cards is a good old-fashioned freezer spell. Take your cards, freeze them in a tupperware container full of water and do not ever take them out. Chill them in that ice and use it as a symbol to freeze your spending and to get that debt paid down. Only defrost them when you're ready to cut them up because you've paid them off and closed your account.
Dealing with Collections Agencies
Once you're behind on your payments the banks will begin to use very forceful intimidation tactics. They will call you all hours of the day and not leave messages on your voice mail. Or if they do leave messages, they will leave highly insulting or threatening messages. Typically they will threaten to garnish your wages, or they'll insult your priorities saying that you have a responsibility to pay off your debts, etc. Their tactic is to scare you until you pay ... anything. They will not want to bargain with you until they can scrape every cent out of your pockets. Once they tire of trying to get money out of you they will often hire a collection agency that employs even more threatening tactics - calling your cosigners or calling you at work, embarrassing you into paying the money.
Here's the deal with collection agencies. If the collection agency is assigned the debt by the bank that originally lent you money, then you don't owe them any money. The bank is just hiring an outside company to collect for them. However the more common tactic - especially for very old, very delinquent accounts - is to write off the debt as a business loss, then sell the debt on the stock market. These debts are bundled up and often sold for a penny on the dollar to collections agencies who then buy the up and start going after consumers scaring them into paying. It's a profit for the collections agency even if they collect one tenth of the original debt amount! And the bank? Well the bank already wrote off the debt as a business loss and were able to deduct that from their earnings that year so they don't suffer in any way - in fact they pay less taxes thanks to your delinquency. Simply put, if the collections agency bought your debt it was their own idiotic business move. You have no contact with that company so you do not owe them a cent.
We have a tool for dealing with these predatory, immoral companies - it's called Debt Validation. Anyone who is being harassed by collection agencies should look into Debt Validation.
Debt Validation - Your RIGHT as a Consumer
Thanks to the
Fair Debt Collections Practices Act you have rights as a consumer. You have the right to not be harassed. You have the right to stop the endless phone calls. You have the right to be provided with proof that the debt is valid. All of these things are weapons in your arsenal against the predatory practices of banks. If the banks break any of the Fair Debt Collections Practices Act, you can file a complaint with your state's
Attorney General's Office and with the
Federal Trade Commission and they can be fined for up to $1,000 plus any lost wages or incurred damages that you can prove and attorney's fees. This is serious stuff.
Check out this link and inform yourself about debt validation. Debt validation invokes your right as a consumer requiring the collector to prove the debt is indeed yours. You must, however, handle this entire issue through the mail with paper letters. The letter you send the debt collector will:
1) Stop the harassing phone calls, requiring them to only contact you through the mail - any phone calls after they've received the letter is a violation of the FDCPA and you can file a complaint against them
2) Will start a 30 day clock from the day the collector receives your letter requiring them to validate your debt. The law requires them to
- Proof that they own the debt/or have been assigned the debt,
- Copies of statements from the original creditor
- Copy of the original signed loan agreement or credit card application
Most companies will not have all of this information. If they are unable to provide this proof back to you in 30 days, then they must - BY LAW WIPE YOUR ACCOUNT CLEAN! They must zero out your account and remove any negative credit reports related to the debt that they have placed on your record. Remember to follow up by printing out your credit report (you get one free credit report per year by law -
you can get your free credit report at this site) and verifying that any negative remarks have been taken off. You can even provide proof in the letter the collection agency sends you proving that your debt has been wiped clean. I used this technique myself and wiped out about $7,000 of unfair predatory debt.
You can also try negotiating on debt that has been validated. This is where you strike a deal with the collection agency for a lower number than what they want to collect. Make sure to only do this through the mail and to send a cease and desist letter to them first so they don't keep calling to harass you. Start with very low offers - like 10¢ on the dollar and then negotiate up from there.
There is also the case of a judgment. Once the court has a judgment against you then you are completely on the hook to pay the amount the court has decided. You still might be able to pay them off in one lump amount, but you have a lot less leverage at that point, because they can garnish your wages leaving you in a very bad situation. Always try to do Debt Validation or Negotiation before the situation goes to court.
Powder Letters to Collections Agencies For Success!
One great benefit of having to correspond through written letters is that you can powder your letters before you send them. You can use
Hot Foot Powder to dust letters to the collection agency to get them the hell out of your life once and for all. Just place the papers all face down on a table and sprinkle them with the
Hot Foot Powder. Then using your four fingers, run them over the
Hot Foot Powder in wiggly lines - like snake tracks - while praying over the papers and calling for God's help in justice against the usurious lenders who are breaking God's law against charging interest. Call upon God's strength to drive the money changers out of your temple.
You can also powder your letters to the credit bureaus when challenging any dings on your record. This will help you be more successful in having negative marks that are illegitimate, or erroneous, taken off of your record. When you write each agency place the paper face down and sprinkle it with
Success and Eloquence Powder (Crown of Success Powder). Run your four fingers over the
Success and Eloquence Powder (Crown of Success Powder) like wavy snake tracks and call to the workers of the credit bureau to think favorably of your requests and for you to be successful in having all negative remarks taken off of your record. Find out more about how you can
challenge negative credit reports at the following link.
Eliminate Your Debt With The Secure Finances Hoodoo Spell
In addition to the practical tools I've discussed in this blog posting, there is also a spell you can do to prevent unexpected expenses, help you pay down your debt and to finally start saving money and building prosperity over time. This is a spell that works for about three months. You can repeat it as often as you need. While it is a powerful spell, you'll need to follow through with practical actions to get the most out of the spell's effects.
You'll need:
- 1 green jumbo candle
- 1 bottle of Secure Finances Oil
- 1 chunk of Pyrite
- Powdered cinnamon (out of your kitchen spice rack will work)
- 1 dollar bill of large increment (Preferably a $100 bill, but a $20 will work too)
- A chopstick or other tool used for carving the candle
- A white plate
Start by carving the green candle. I like to carve dollar signs all over the candle within squares (representing money kept in a safe or in a pocket). Also carve your full name and your birthdate on the candle. Then dress the candle with
Secure Finances Oil by stroking it onto the cande toward you. Then dust the candle with the powdered cinnamon, praying the entire time for money to come to you, stay with you and for you to remain disciplined in your efforts to pay down your debt. Set the candle aside.
Now take the bill of large increment and sign your name under the treasurer's name. Then draw a square around each increment number on the four corners of the bill. Dab a bit of
Secure Finances Oil on the four corners and center of the bill then place it on the white plate.
Next take the piece of
Pyrite and dress it with
Secure Finances Oil calling for the spirit of the Pyrite to help bring money to you and for it to stay with you. Place the
Pyrite on the bill. Then place the candle in a candle holder and on top of the bill as well with the
Pyrite in front of the candle (closest to you). Pray over the candle for God to help you have the strength of will and purpose to keep you focused on your goal of paying down your debt and growing prosperity in your life once and for all. Then light the candle and take a moment to just gaze into the flame and see it spark the flame within you; a flame of purpose and steadfast action toward success.
Once the candle is done burning you can take the leftover wax and bury it in your backyard to keep the energy there. You can then take the pyrite and the bill and put them in a container and save them. When you repeat the spell use the same bill and the same piece of
Pyrite, just dress a new green candle and repeat your process.
Screw the Big Banks - Go With a Credit Union
Finally, one of the best ways to show the big banks that you're not going to take their crap any more is to take your money out of their banks and to sign up with a Federally-secured local credit union. Credit unions give their members better rates, higher interest and a share in the profits of the credit union in the form of dividends. Credit Unions are set up by the members and are solely there to serve its members and help them get ahead. They are not built for profits like the big banks are. You can
find a local credit union in your area by searching this web site. Just make sure they are Federally-secured and you're good to go.
