Comments on: The Number One Tool Of Financial Enslavement

By: Gary Anderson

Gary Anderson — Sat, 24 Jul 2010 17:04:35 +0000

My blog is dedicated to walking away from this debt. Just consider it. Grab these banksters by the balls. There is no other way, but of course to stay out of debt in the first place.

By: Flyer1

Flyer1 — Sat, 17 Jul 2010 02:40:53 +0000

Be a lender!

By: Bill

Bill — Tue, 29 Jun 2010 21:32:52 +0000

Frank,

One of the keys to entering a profession such as law is to go to a city where you have decent chances. I graduated from one of the most elite universities in the world ( I do not intend arrogance) and then moved to Orlando, FL. because my wife was there. After much wrangling, I managed to teach some courses in the university, but have been told directly that I will never be hired, etc. I did not want that anyways. I tried to find other positions somewhat related to my area of study to no avail.

I am saving money to move back to a metropolitan area. It should not be a problem to find something there.

By: Professor G

Professor G — Tue, 29 Jun 2010 21:23:31 +0000

If reducing your income means eating beans and rice for a year, then do it. You will survive. C-7 is predicated on a income means test. If you are under the mean income, you will get the C-7. You can be back on your feet creditwise in less than three years.

Do the arithmetic and see if you can pay the unsecured debts in five to ten years. If not, then follow the plan I noted. Make your kids earn their way through university if that is on the horizon. If it takes them five or six years instead of three or four because they have to work, then so be it. Actually, most higher education is a waste of time and money. However, I understand the role of status in the U.S.

By: Professor G

Professor G — Tue, 29 Jun 2010 21:14:31 +0000

Yes, as a political economist, I say make a five to ten year plan to pay off debts. The only reasonable debts are financed automobiles and a mortgage.

It is not impossible, I am doing it. I have a credit card, but I don’t use it. I got rid of all the other ones.

Think strategically about bankruptcy. There is nothing immoral about it, if your calculations show that it is not possible to pay off unsecured debt within five to ten years.

You have to know a little about judges and trustees perspectives on bankruptcy. The judge and trustee have a lot of power (minus modifying mortgage payments)and act completely on experience; i.e. a subjective assessment. If you have run up debts for frivolous outings (casinos, cruises, etc.)you won’t get off easy. The truth is people do run into spats of really bad luck at some point in their life and judges know that.

If you are in a really bad situation, take out a refi on your home and pay as much as you can off with it, provided you have equity. After that wait one to two years or right before the refi resets if it is an ARM, etc. Do not run up frivolous debts in the meantime. I would prioritize the equity towards students loans first, your kids if that is the case, because these can never be discharged. I would also try to pay the secured loans (auto) first. An auto is indispensable. After one or two years or if the ARM is about to reset, forclose the house and enter a Chapter 7. Prior to the filing of the chapter 7 reduce your income to the extent possible. The C-7 will be predicated on the last six months average of your income. Yep, that is primarily what matters. If you make too much, then you are forced into a C-13. A C-13 is hellish but better than being in perpetual debt. A

My advice is don’t rush it, plan it.

Times are going to get hard, you do not want to be in debt over your head.

By: Jim B.

Jim B. — Fri, 04 Jun 2010 20:24:23 +0000

I have been in every conceivable financial situation that you can imagine except being deep in debt. I have had to go to credit to buy a set of tires in the early years. I am almost 75 yrs old now, have been saving very hard for about 10 years and have no debt and quite sum in my bank and credit union. I will not be able to spend my savings in this life time, so what have I accomplished? I don’t owe that sucker of life at the financial institutions a single dime. Let me tell you it soes feel gooooood!!!

By: Vulcan

Vulcan — Fri, 04 Jun 2010 19:39:49 +0000

The debate is laudable on all fronts. The biggest issue is how to attain a sense of perspective in order to make more rational decisions about the impending changes coming to us all. Youtube has the entire Money MAsters series about the hisotry of central banking, fractunal lending going back three centuries. I personally believe the book the 4th Turning by Strauss and Howe details the chronology best which traces the 80 to 120 cycle to before the Romans. It continues today and is not within the power of anyone or any organization to prevent its march. Educate yourself to what has been missing from the education of the masses.

By: Lisa

Lisa — Wed, 02 Jun 2010 11:26:45 +0000

I was taught that in order to exercise critical thinking, it is important to examine the author – his credibility, biases, etc. I think that Colin raises some good questions as to the background of this author. Information shouldn’t just be taken at face value, but rather considered in a thoughtful manner. Google “critical thinking” to understand my point. I don’t think anyone would disagree that it is a good idea to get out of debt. I think that what Colin is questioning are some of the other claims that the author makes regarding the future of the US economy. Knowing the author’s education and credentials would help in determining the validity of his claims.

By: Eric

Eric — Wed, 02 Jun 2010 09:18:46 +0000

I very much agree with this article and for sure to anybody who knows simple mathematics. My paycheck is not really that much, but after so many years of staying out of debt, I have much advantage over those who make debt as their only way to manage their household finances. Who says Credit cards are bad? I use them everyday, but i pay the full amount at the end of the month without paying any interest and it also earn points that are redeemable. Lenders or loansharks must be avoided as much as possible if you dont want to be a modern day slave.

By: jeff

jeff — Wed, 02 Jun 2010 03:57:40 +0000

Why pay your usurious loan off at all. I agree the house of cards is about to crumble. Bankers have lent credit out of thin air to the masses AND HAVE RISKED NOTHING..in the process. Stop making credit payments and use your newfound freedom right now to purchase essentials only. The world will soon be an as you used to know it place anyway.