DAVE RAMSEY – WORSHIPING FICO SCORES

Hey this morning I saw Dave Ramsey on The CBS Morning Show. He said we worship at the alter of the FICO score. So true. He explained how FICO scores do not determine wealth and today the only entity making money from our FICO scores are banks. There are about 1 in 5 mortgage companies who will manually underwrite loans via FHA, etc.

When the loan is manually underwritten it takes many other things into account such as paying your landlord on time, time at your job. It looks at the person and not the score.

One thing he explained which is very true because I have friends just like this…you can make 1mln dollars and have a bad FICO score.

Here is the rest of the story

Cash is King…

Arbitration is to validate the debt

It was explained to me that arbitration is to validate the debt..Do you owe it to the company? You had said not, that you had the papers to prove it. You send a copy of those and an explanation of why you don’t owe the money, to the Arbitration company and if you request a trial, according to some scale is the fee, look on that web site for answers, and a certified mail copy to the company that has brought you to this point.

That has to be done in the 30 days, and which point you move to step 2 you get assigned a mediator, and a date initial hearing..30-90 days later. Is it a third party bringing up the same debt? If you have the proof maybe they are checking to see if you lost it to get a second judgment or settlement. Good luck, I am on step two.

you are right (but I didn’t know about the fee) I will look further. Yes, it is a 3rd party..collection agency. I am looking for the follow up letter from the organization that regulates banks. They followed up with my complaint 2 years ago about the company reversing their settlement offer after I had only 2 payments left.

MBNA responded to the complaint but then sold my debt to a collection agency. So the amt is erroneous..plus they added on 100% interest doubling the original amt of $2,500 to $5K…they are crazy. The settlement about was $970. I will send all the paper work. I think my 30 days is this week. There is no date on their letter, but I had to sign for the letter via certified mail …so I will double check the postage date on the front of the envelope.

I recently had many items removed from my credit report due to erroneous credit reporting…..So you are going through this also? Thanks again…I’ll keep you abreast….

I haven’t been through Arbitration

I haven’t been through Arbitration or know anyone who has; but I know a little about it … maybe enough to be dangerous 😉

Decisions by the Administrator are legally binding just as if you went to court. And if it were me, I would have an attorney go with me. It’s a little less “formal” than a court appearance, but still has rules and protocols.

If you haven’t already, you may want to review the American Arbitration website: www.adr.org

Arbitration question

Hello,

Has anyone been through the arbitration process with a creditor? I am about to embark on this endeavor with MBNA. My acct was transferred to NCO after I filed a complaint with the National Bankers Commerce Regulators. Now they are trying to of course collect an erroneous amount through arbitration.

I am going to request a hearing. Because I have all the documentation of a settlement agreement they offered me prior to assigning it over to NCO.

Just any FYI’s or experiences will do. Thank you..

Our intentions can be misunderstood

I think at this point we all recognize that our intentions can be misunderstood, whether we are the one posting a question or the one attempting to assist with a solution/response. Perhaps we can all learn from what occurred recently. Having said that, let’s move on. I’ve been part of the email group for a couple of months now, and for the most part I think we can agree that it’s a helpful and respectful environment.

If anyone directly involved in the recent “conflict” wants to further address the issue, please feel free to contact one another offline if that’s what you wish. Meantime, speaking for myself, I’m hoping we can move on.

I am not sure what has happened in the past

I am not sure what has happened in the past that has made you feel the way that you do. If you would take the time to read the intro to the group you would understand that Deb has not set any specific parameters as to who qualifies to ask questions and who deserves the groups help. Maybe you should take a moment and do just that.

Deb has indicated in the group intro that this community is dedicated to providing you with no nonsense guidance to get out of debt. Offering advice and information regarding debt relief including reviews of commonly used products to help you get out of debt.

Chat with others in your same situation, get tips on saving money, living within your budget, and getting out of debt.

Remove financial stress from your personal relationships and enjoy life.

I asked a question about paying my creditors using the allotment worksheet as outlined by Dave Ramsey. I feel like you blasted me for not giving enough info and that you felt like I was playing games.

You may feel like it’s wasting time and energy but I joined the group, asked for help and received it. End of story. As another poster wrote, we all face different situations and what may seem overwhelming to one may seem trivial to another. I am sorry that my issues don’t meet your standards of overwhelming.

Deb has been gracious and generous with her thoughts as have others on this board. My problems may not seem as critical as the person dealing with the medical issues but they are real and I have to face them each and every day.

Yes I am expecting a large payment. From a divorce that was finalized in 2007. The legal action accelerated in 2013 but as of today, it is still not resolved. My hope is that it will be resolved within two months but if that doesn’t happen I wanted to know how to handle my creditors.

I still have to answer the phone and I still need to make informed decisions.

If you aren’t wanting to chat with others in your same situation, get tips on saving money, living within your budget, and getting out of debt then don’t blame me for wanting to do that. I’ve gotten some great thoughts from people and will contribute when and where I can if I feel like my thoughts might encourage someone.

Like I said, I had some questions because up until recently we’ve kept our heads above water but it won’t last much longer. I am only assuming my legal action will be settled as that is what the attorney assures me but, that’s nothing set in stone. Only an anticipation of when it should settle.

What’s your situation CJ? If you haven’t been where I have then let others who have post in peace. Let them decide for themselves if they are mad or if they wasted their time. I certainly am appreciative for the thoughts and positive posts and already have had some relief of stress as I am able to make some decisions about where to go from here.

Anyway – I apologize to the group at large if I’ve offended anyone. I really do appreciate the feedback and clarification that I’ve received. I don’t know it all but am learning and you’ve helped.

You are the one who is trying to deal with your husbands surgery

I assume you are the one who is trying to deal with your husbands surgery. The first letter dripped of hatred and resentment, but now I see you are mad at but your problem. Ask the community, I haven’t seen you ask or explain it yet so how can we help you?

Plus we have all been in a situation that feels so very overwhelming, an outside prospective helps to put it into a manageable problem we can slove. I can’t help with the medical bill questions but someone out there can…

You have presented such an impossible situation

You probably aren’t getting any answers because you have presented such an impossible situation.

You say you and your husband have a combined income of $2,000 per month. That’s minimum wage or below if you are working full time… and surely you must be working full time if you may get a bonus and your husband sometimes gets overtime..

How could you still be making minimum wage if you are old enough to be married?

How could you have qualified for a mortgage if you make so little?

How could you have convinced anyone to loan you any money at all, much less $64,000?

Perhaps others suspect, as I do, that you are playing games.

If you are for real, then more details might prompt more attention to your problem.

The tone was not to be mean, but realistic.

The purpose of the group is to help each other, and wasting time and energy on the wrong problem helps no one.

In fact, it hurts others. It takes away from such problems, for example, as the one being experienced by the member who, with only her own salary, now faces her husband’s life-threatening surgery, large medical bills, and other bills that were taken on when the household had her husband’s income.

Only after other members spend time and energy worring about how to help her, and he spends her time (a considerable amount, I’d guess) writing a long and very thoughtful message about the wrong problem, does she reveal that her entire debt will be wiped out by a large payment she expects in two months.

Anyone had any luck in working w/ your creditors?

I would like to contact each creditor and send each creditor an equal amount and an allotment sheet showing that I am not favoring one creditor over another. Anyone have any luck doing this on your own? I would like to try to do this on my own but wondered if anyone had any experience in that.

A few days ago i was told:

you can’t do it this way… You owe different companies different amounts and each one has to get a percentage comparable with what you owe each company to a total you can afford. Telling them all the percentage break down and what you can afford to give will be acceptable as long as you show clearly how you have calculated your finances to arrive at the amount left to pay the debtors. Yes you can do this on your own…. by the way did you receive my other e-mails as I have not heard anything from you…

Is that correct?

You have never broken the habits that got you into financial trouble

I don’t want to seem rude but it appears you have never broken the habits that got you into financial trouble in the 1st place. Using credit cards to pay your loan (which is basically legalized loan sharking but I digress) is not going to help you solve any problems at all. Here are some suggestions just based on the info you supplied:

  1. You don’t say where you currently live but $504/month for a mobile home and lot rent is very high for the area where I live (Southeast) so I would check into relocating.
  2. Is it possible to trade down for a cheaper car?
  3. $44 for school lunches? Is that per week? Start having her brown bag it.
  4. Are there other options for phone service? Cut out all the extras: 3 way calling, caller ID, message service, etc.
  5. Raise your car insurance deductible from $100; even if you can increase it to $500 you would get a lower rate.
  6. I know the old adage “Never loan money to family and friends” but if you have a family member who is in a position to help I would ask them for a loan. Offer to pay a low interest rate and set up a monthly payment schedule; have it notarized if that makes them feel better. Then pay off ALL your CCs and loan sharks, cut up your credit cards, and start over with 1 payment to your family member.

There really is no way to “move fast” with financial problems. I highly recommend the tried and true “Write down every cent you spend for a month” method, you’ll be surprised at what turns up. Hope this helps and good luck.