No Increase in Monthly Payments to you, No Out of Pocket Fees
With complete reliability our program will eliminate all your creditor obligations, including mortgages, in 7 to 10 years without increasing payments, without compromising credit standing and with no out of pocket fees. What’s more – we do it for you.
The Crisis in Home Economics
* The debt load on American Families has tripled in ten years. Student borrowing is up 500% in just six years. The #1 New Years’ resolution is to get out of debt.
If trends persist in the next five years nearly one-in-seven families with children will go bankrupt.
Last year more people went bankrupt than –
o suffered a heart attack
o were diagnosed with cancer
o filed for divorce
The number of car repossessions has doubled in less than 5 years. Last year more people filed for bankruptcy than graduated from college. Approximately 2.1 million bankruptcy petitions were filed in 2005, 50% higher than the prior year and the most ever filed in any 12-month period.
America has become more a debt 'junkie' - - than ever before with total debt of $48 Trillion - - and the highest debt ratio in history. That's $161,287 per man, woman and child - - or $645,148 per family of 4, that’s $45,514 more debt per family than last year. Last year total debt increased $3.9 Trillion, 5 times more than GDP. External debt owed foreign interests increased $1 Trillion; Household, business and financial sector debt soared 9%.
72% ($35 trillion) of total debt was created since 1990, a period primarily driven by debt instead of by productive activity.
American households' overall debt rose to a median 108% of income in 2004, up from 78% of income in 2001, according to the Federal Reserve Board's Survey of Consumer Finances.
In February 2007 the average household had 10 credit cards, and the average interest rate was 19%.
In 2005, for the first time, U.S. households borrowed more than $1 trillion. Before 2000, consumers had never borrowed more than $488 billion in one year, according to Federal Reserve statistics.
Home foreclosures have more than tripled in less than 25 years.
The average police officer can not afford a median priced home in ⅔ of the metropolitan areas in America on the officer’s income alone. More kids were listed in their parents’ bankruptcy filing than signed up for Little League or got braces on their teeth.
In a single year more than 5 billion pre-approved credit card offers pour into mailboxes all across America. That’s over $350,000 per family.
Credit card debt has increased 10,000% from less than $10 billion in 1968 (adjusted for inflation) to a number that should hit more than $1 trillion.
Savings in America has dropped from 11% to a negative 1½% while credit card debt has climbed from 4% to 12% of personal income.
The average family’s fixed expenses are 2½ times higher today than 30 years ago (adjusted for inflation).
A full-day program in pre-kindergarten in the Chicago public schools cost $6,500 per year. That’s more than a years’ tuition at the University of Illinois .
Most Americans worry about their debt; and most worry about it most of the time.- Associated Press
More than two-thirds of Americans have no money saved. (e.i. more than two months earnings) - Federal Reserve Bank
Household debt rose from 71% of disposable household income to 126% between 1979 and 2005 - Woodstock Institute of Applied Research
Homeowners’ equity in their homes declined from 67% of their homes’ value to 57% between 1979 and 2004 despite rising home values that would add to an owner’s equity. - Woodstock Institute of Applied Research
70% of all Americans (roughly 140 million people) say that they are carrying so much debt that it’s making their lives unhappy - U.S. Dept. of Labor Statistics
Eight Things You Should Know
1. Even if you make your credit card payments on time, the credit card bank can raise your interest rate automatically if you're late on payments elsewhere -- such as on another credit card or on a phone, car, or house payment -- or simply because the bank feels you have taken on too much debt.
This practice is called the "universal default" clause and increasingly is becoming a standard clause in credit card agreements. According to credit card executives, the logic behind universal default is that the bank is not being unreasonable in raising rates when it has reason to believe that the risk of being repaid by the customer has increased. [Note: Credit card banks can now easily track your everyday financial activities and monitor your credit score -- see below.]
2. Your credit score -- known as a FICO score -- has become a vital statistic for many Americans and can be widely shared. It is used to determine how much you can borrow, how much you pay for life insurance, if you can rent a home, and, as already noted, it can be a factor in determining the interest rate you pay on a credit card.
Most Americans don't know what their credit score is, nor how it's computed and with whom it's shared. Your credit score is usually determined by five factors, with the most important being the amount you currently owe and your payment history on large debts. (Find out much more about your credit score and how it's tracked, by reading: Credit Scores - What Your Should Know About Your Own.)
3. There is no federal limit on the amount a credit card company can charge a cardholder for being even an hour late with a payment.
In 1996, the U.S. Supreme Court in Smiley vs. Citibank lifted the existing restrictions on late penalty fees. Back then, fees ran to $5 or $10, and usually did not exceed $15. After the Court's decision, fees soared, reaching upwards of $30. Since then, the amount of revenue the companies generate from fees (including late charges, over-the-limit fees, and charges for returned checks) has doubled. Duncan MacDonald, one of the lawyers who worked on the Smiley case, predicts penalty fees could rise to $50 in another year.
4. It's important to read the fine print on your credit card agreement.
Not many people do, however. Even credit card executives and consumer advocates admitted that the last time they read their own contracts was years ago and the credit card agreement is difficult to understand. Tucked into the fine print that people so often ignore is a clause that allows the company to change your interest rate (APR) at any time, for any reason, as long as they give you 15 days' notice. (So, Read the Fine Print.)
5. Many Americans are inattentive about their credit card accounts.
Approximately 35 million Americans pay only the required minimum -- as low as 2 percent -- of their balance each month. Sticking to that rate, it could take years to clear their debt and they'll end up paying far more than the cost of the items or services they bought. However, many of these 35 million cardholders could pay more than the minimum, and could possibly even pay off in full their balance some months. But they don't -- even though the interest rate they are paying on their credit card balance is considerably higher than what they pay on other things and compared to what they're getting in interest income from their savings account. Is this "financial illiteracy," or just human beings' "irrational behavior?"
6. There is no federal limit on the interest rate a credit card company can charge.
If you've ever looked at the return address on your statement, you may notice your credit card issuer is located in a state such as South Dakota or Delaware. That's because these are the states that have either weak or no "usury laws" meaning there is no cap on the interest rate that is charged. The federal government once had national usury laws that set a cap on the amount of interest that could be charged on a loan. But after the Great Depression, it repealed them and some states put no new usury laws in place. That's why Citibank, the issuer of Mastercard, moved to South Dakota, which has no cap on interest rates.
7. Significant credit card debt can put you at a markedly higher risk of bankruptcy.
Going bankrupt usually isn't the result of spending sprees. It's more commonly triggered by job loss, medical problems, or a divorce. Those hit by any of these misfortunes often turn to credit cards to stay afloat. But if they have trouble finding new sources of income or an illness keeps them off the job, they often cannot pay off their debt quickly, especially if their interest rate is high. "They get their feet tangled up in those high interest rates," says bankruptcy expert Elizabeth Warren, "and they just get sunk." Refer to the "Crisis Ratio" in your Management Plan.
8. Did you know that a real professional solution exists to eliminate all creditor obligations without increasing payments or compromising credit rating?
With complete reliability you can eliminate all creditor obligations including mortgages in 7 to 10 years. That's everything: credit cards, personal loans, vehicle loans, 1st mortgages, 2nd mortgages all wiped out quickly. Payments don't go up, credit ratings do and there's no out of pocket expense to subscribe. IT'S THE PROGRAM FOR LIABILITY MANAGEMENT.
Frequently Asked Questions
Why don’t banks and credit consolidators offer this Program?
Banks have no motivation to assist people in accelerating the repayment of debt. Credit consolidators do not have the expertise or resources to provide the type of comprehensive, full service, financial management program that we offer. While investment counselors and stockbrokers only seek out people with a surplus of available funds; our liability consultants address the liability side of your personal financial statement, bringing it to a zero-liabilities status.
How do my bills get paid?
The execution and implementation of your financial plan is carried out automatically with the services of our affiliate company, Trustmark Plan Administration, Inc. ("TPA Corp.") and SunTrust Bank, N.A. As part of the services you enrolled to receive, you will have an accounting department and customer relations personnel to assist you. Funds will transfer, on dates designated by you, from your own bank account into TPA's Bonded Trust Account (the "Reserve Account"). Your creditors will be paid according to the financial plan selected by you. The system is passive: You need only continue to pursue your career and deposit your paychecks in your own bank account as you always have - and we take it from there.
How is this different from ordinary debt consolidation?
Consolidation of debt means to combine many debts into one. Most people do this to reduce payments; but in the process; they may end up spending an additional 30 years paying off their debt. The purpose of our Mortgage Payoff Financial Program is to eliminate all debt obligations quickly - normally in 7 or 10 years - while keeping payments at a reasonable ratio to your earnings.
How is this different from credit counseling?
At no time do we negotiate with your creditors; we simply accelerate the repayment of your balances. Many lenders view credit counseling as equivalent to bankruptcy. In both counseling and bankruptcy, the borrower will renege on their agreement to repay - and negotiate new terms of repayment. Both damage credit. By contrast, your participation in the Program will improve your credit rating.
How will this affect my credit standing?
We are paying off creditors at once in the debt restructure phase and accelerating the payoff to creditors in the private banking phase so you will enjoy both short-term and long-term improvement to your credit rating.
What is the difference between “nominal” and “effective” interest rates?
Interest rates are among a number of factors that a wise consumer would consider important when looking at any financial proposal. We differentiate between the nominal rate of interest (the interest rate on the note and the rate the lender "hopes" to obtain) and the effective interest rate (the rate you actually pay). Our chief concern is the amount of interest that our clients actually pay. While we make every effort to acquire the best terms of finance, our clients generally pay less than 3% effective rate of interest. You'll find your effective rate of interest highlighted in yellow in your Financial Plan.
How does the Program work?
The Program for Liability Management combines four operations in the financial services field in an entirely new way to seamlessly produce a sensational result. The three primary ingredients to the Program are:
Finance is defined as “obtaining funds.” The Program utilizes finance to perform debt restructure. This permits us to exchange, or “swap,” debt undertaken under unfavorable circumstances with debt that can be obtained under better terms. A debt exchange can effectively reduce your monthly obligation, which provides the resources to create the acceleration. This step involves nothing that would damage your credit.
Technology: We have developed proprietary software with two missions in mind: first is the most rapid elimination of debt and the second is the largest possible dollar savings of currently scheduled interest obligations. The technology produces a number of results including a graphic Financial Plan running some 12 to 20 pages long (depending on your circumstance). The Financial Plan, on average, shows that we are capable of eliminating all debt – including the mortgage(s) – in about 7 to 10 years and provide you with significant savings in scheduled interest obligations. The Technology directs the private banking schedules according to the Financial Plan options you select. In that way you’re always in control.
Private Banking Services mean that you no longer have to make your bill payments yourself because we provide accounting services to handle that for you. Private Banking Services are executed through the ACH facilities of the U.S. Federal Reserve Bank and the Treasury Management Division of SunTrust Bank N.A. The Financial Plan selected by you will be implemented through the Private Banking Services provided to you as part of your enrollment in the Program. This makes enjoying the benefits of becoming debt free passive and seamless.
What is liability restructure?
A restructure permits us to exchange, or "swap," debt undertaken under unfavorable circumstances in exchange for debt obtained under better terms. This effectively reduces your monthly obligation, which provides the resources to create the acceleration. We can obtain the restructure by either secured or unsecured means. Usually the terms on secured (by property) finance are better than unsecured with lower rates and longer amortizations producing lower minimum monthly expenses. This enables us to utilize an asset (property) that is already highly leveraged to eliminate all obligations including the obligations on that asset. Note: Some clients have available liquid resources to apply to debt restructure. For them no mortgage is required.
What is debt?
We often hear people tell us that they have no debt. Are you a homeowner? Is there a mortgage on the property? Do you make car payments? Are there balances on your credit card accounts? (Credit is a fancy word for debt - which is a loan. And loans must be repaid - often at a very high cost.) Most of us are reluctant to think of ourselves as "being in debt" yet there's no question that if lenders have provided you with the money to make purchases and you have not repaid those sums, you have debt.
Why can’t I do this myself?
That is a fair question. To begin with, how many people do you know that would defend themselves in court if their life - or even their freedom - depended on it? How many people do you know that would perform surgery on themselves to correct a medical problem? How many people do you know that would perform a root canal on themselves? It's doubtful if any one would do any of the above - even though they certainly could - if they had the training, technological resources, economic resources, qualified staff, cutting edge equipment and the time and/or discipline to do , and follow up on, any of the above. In fact, most people do not even cut their own hair or do their own taxes. The old saying goes: The lawyer who represents himself has a fool for a client. In many cases doctors are prohibited from treating themselves.
Well, our scenario is much the same. Recognizing a desperate need (please see the statistics at the end of this FAQs), we put together a world class team of mathematicians, software engineers, executive banking (commercial, investment and mortgage) professionals, computer information systems designers and builders, programmers, a banking operations relationship with the #1 respected Federally chartered bank with regard to ACH programs (of which our program is one), and a dedicated team of customer service representatives to help you keep your Program running smoothly. We, alone, conceptualized, designed, built, field tested, fine tuned and continue to monitor the technology and the Program's operation on an ongoing basis to optimize your financial goal of Prosperity.
This is, perhaps, the most important financial service ever developed for the individual American - the implementation and management of which is certainly not best left to amateurs. To eliminate your debt in the least amount of time, at the least expensive cost to you, is perhaps the greatest thing that anyone can do for you financially - and can only best be accomplished by the aforesaid team of professionals working full time in your behalf for as long as it takes to eliminate your debt. Most people spend their lives working to pay off - over a long period of time, at a high economic cost - their accumulated debts. Because of that, they never get ahead financially. We bring true prosperity (absence of debt) to our clients in about 7-10 years. In so doing, we position them to make their financial dreams come true.
What is the proper role of money in my life?
Money is serious business - especially for the people who try to separate you from yours. Creditors advertise easy access to money every day. What isn't immediately apparent is that repayment of that money can be expensive and difficult. All of us want things that make our life easier. Borrowing money, in order to obtain the things we want, necessitates that we have a plan to efficiently put those obligations to rest. We need to do this so that we can accumulate resources and protect our future.
What should I know about my liability portfolio?
TERMS: When lenders structure terms for repayment on consumer debt, they put their own interests first. The schedule for repayment of credit card debt can take more than a normal lifetime; and the method of calculating minimum payments can have a greater impact on the cost of your debt than the interest rate charges. The combination of low monthly payments and high interest rates on credit cards can work to your disadvantage, so that balances are never paid off.
RATES: While lenders may offer low interest rates to borrowers - either as a temporary inducement or for competitive reasons - they reserve the right to revise the lending rates under certain circumstances. Lenders, periodically, check your credit. One late payment record on an unrelated card (whether factual or not) can cause your $50 minimum payment to jump $250; and it's entirely outside your control.
PAYOFF: You are entitled to pay off a debt balance on a credit card or installment loan at virtually any time. But, because the business of lending money on credit cards is so very profitable, lenders have become adept at discouraging payoffs. If you send in payment, well in excess of the minimum payment, say, $275 instead of $75, the next month you might find that your bill says: "Minimum Payment Due: $0.00"
MORTGAGES: Mortgages are structured to provide the bulk of interest repayment in the early years - and then principal repayment in the later years. If you have a $150,000 mortgage with payments of $1,000 per month you are sending $12,000 per year and $120,000 in payments over ten years. But at the end of the tenth year, almost all of the original balance of $150,000 will remain!
What kind of financial planning can I expect from my Mortgage Payoff Financial Advisor?
Conventional financial planners invest your excess available funds in mutual funds, insurance products and/or stocks & bonds in order to create an asset portfolio. Your Payoff Advisor, uniquely, focuses on your liability portfolio - including amounts due, terms of repayment, interest rates and amortization schedules. By doing so, your advisor is performing tasks that no other financial services provider would normally do for you. Tax accountants, for example, are concerned with obligations to the IRS, and your insurance professional is concerned with managing risk only (along with collecting premiums). Your advisor will, with the assistance of the entire Financial team, work to eliminate all your debt obligations - swiftly and seamlessly - so that you can enjoy a debt-free life - and position yourself to, realistically, attain financial independence.
What about confidentiality?
Our clients value their privacy, especially where their personal financial information is concerned. There is no reason that anyone would know that you’ve enrolled in the Program, including your creditors. Strictly speaking, you’ve hired a staff of financial planners and their accounting department to handle your finances. Under no circumstance are our client records shared, sold, or released to other vendors.
Can I continue to use my credit cards?
The Program will make complete payoffs to certain creditors and accelerate the payoff to others. Credit cards in the acceleration phase of the Program should NOT be used. (One charge card or credit card that is NOT in acceleration-mode may be selected for day-to-day use such as for booking travel and leisure reservations, car rentals, etc.) Nor should you undertake to accumulate any additional debt. Your goal of total debt elimination is within reach: just stay focused on that goal.
What am I obligating myself to in the Mortgage Payoff Financial Program?
Once your personal Program is in place, your only obligation is to assure that your funds are properly transmitted so that the resources are in place to continue your Program without interruption. Our program makes it possible to repay your creditors swiftly and painlessly. You will receive monthly progress reports showing the acceleration of payments and your subsequent savings. If you ever want to leave the Program, we can simply suspend your participation and you can re-start at any time. We're here to perform for you - never to burden you.
What if I get a new car?
If you get another car, and finance the purchase, you can simply add the new obligation to the Program. Remember that, if you're planning to trade in your current vehicle, you'll probably be offering a fully paid-for vehicle in the trade - as we frequently target auto notes for early restructure. This will keep your new car note small. We'll add the car note to the Plan - typically extending your time for financial freedom by about five months.
What is the purpose for the Reserve Account?
Payment due dates are imbalanced. Normally more than 80% of balances due fall in the first half of the month including mortgages, car notes, credit cards, monthly escrow payments, insurance, etc. For many families this places financial and emotional stress on the household necessitating late payment fees and/or overdraft charges. A funded Reserve Account balance makes it possible for all bills to be paid on time and some to be paid in advance (as credit cards charge interest daily).
Where does the money come from that funds my Reserve Account balance?
All of the resources necessary to make your Program work are arranged into the debt restructure.
Do I earn interest on my Reserve Account balance?
There are no monthly banking charges assessed and, likewise, no interest earned by you on balances in reserve.
Can I access my Reserve Account balance?
The balance in your Reserve Account performs an important function by assuring the timeliness of payment. If the balance is reduced below a certain point, that important function cannot be performed. As a result, access to your reserve account is limited. During your first six months in the Program, you will not be able to access your Reserve Account balance. Subsequently, you'll be able to access up to half of the original balance - but no more than is required for the Program to function. If you deplete the balance below our ability to function, the Program will be suspended.
Do I have an individual account at SunTrust Bank?
This is a pooled account containing the cash reserves of participants in the Program, and your funds will be co-mingled together with the funds of others. However, there is a strict accounting of your balance to keep your money safe.
Will I continue to receive statements from my creditors?
Yes. Along with the Monthly Progress Reports you get from us, you will continue to receive your regular monthly statements from your creditors.
How can I assist in the process?
We don’t receive duplicate statements from your creditors so you need to be vigilant. That means that we need you to closely watch your creditor statements for changes in: named payee, address for payment, interest rates charged to you, payment due dates, or any other revision in the arrangement. Any correspondence regarding tax and insurance escrows need to be sent to us.
How Do I Get Started?
Please Call Us or Email Us with the Following Information:
Name:
Address:
Tel Phone:
Best Time to Call:
Email:
And one of our financial payoff advisors will contact you to answer any questions you may have
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