The ZipDebt Blog
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Congress recently passed the “Credit Card Bill of Rights,” and the new law was signed by President Obama and will go into effect in 2010. I’ve been getting a lot of inquiries about whether or not the new legislation will have an effect on the debt settlement process, so in this blog post I’ll take a look at the changes and discuss some of the potential benefits (and pitfalls) for consumers. (Click to continue reading this post…)

Given that the whole country is still in the grips of the most severe financial crisis since the Great Depression, with millions of Americans falling behind on credit card payments, you would think that this would be boom times for the debt settlement industry. Well, I for one am truly glad that I do not own or manage a debt settlement company! The industry has been under (Click to continue reading this post…)

Recently I was trying to find a way to explain to someone how I conduct myself in the business world. It’s sometime difficult for me to explain why I do things the way I do. My “business model” often makes no sense to others, simply because I make decisions that are often surprising to people who don’t know where I’m coming from. One example is the lack of paid (Click to continue reading this post…)

It helps sometimes to put things in perspective with a little math. On a daily basis here at ZipDebt, clients report successful settlements on their debt accounts. I finally had a chance to take a closer look at the numbers for 2009 so far. For the months of January and February 2009 combined, clients have reported settlements that resulted in more than $1.1 million in savings. (Click to continue reading this post…)

Here we go again. Two different consumers have informed me that a “debt consultant” (i.e., sales rep) at a settlement company made a specific claim about the 1099-C taxable income issue. The pitch is that if the client handles the negotiation themselves, they will be issued 1099-Cs by the original creditors and the forgiven balances will be fully taxable. Naturally, they (Click to continue reading this post…)

Here at ZipDebt, I’ve been hearing the same questions on a daily basis:

“What effect is the economic crisis having on debt settlement?”

“With everything going on with the banks these days, is it easier to settle, or tougher?”

“What effect will the bank bailouts have on debt settlement?” (Click to continue reading this post…)

I’m writing this as we wind up 2008 and head into the new year. This has been a very busy year here at ZipDebt, to say the least. This, of course, is a just sign of the times economically, and I’m expecting 2009 to break new records in terms of the number of people seeking assistance. It’s been so busy, in fact, that I’ve been delayed in writing about a few topics that I’d like to share my thoughts on. As time permits, I’ll be writing about the new rules imposed on credit card banks by the OCC. I also plan to write more about the financial crisis of 2007-2008.

For anyone looking to gain a better understanding of what happened to our economy, I highly recommend “The Trillion Dollar Meltdown” by financial writer Charles Morris. The book was published early in 2008, so it doesn’t discuss the stock market crash and panic that occurred in October 2008, but my understanding is that a revised edition will hit bookstores in early 2009, renamed “The Two Trillion Dollar Meltdown”! You won’t find a more lucid explanation anywhere, and if you’re wondering what the heck a synthetic CMO is (collateralized mortgage obligation), this is the book you want.

To my regular readers, clients, fans, (and critics too) — best wishes for a safe holiday and a Happy New Year!

If you read this blog on a regular basis, you know that I frequently write about the debt elimination scam. I’m usually coming at it from the angle that companies offering these services are fraudulent. The owners know they are ripping people off by selling a system that simply doesn’t work. But every once in a while I hear from someone who’s not trying to sell debt (Click to continue reading this post…)

Since the financial meltdown in September 2008, I’ve been asked on a daily basis what effect the financial crisis will have on debt settlement. Will it be easier to settle now? Will the banks get tougher and make it more difficult to settle since they’re hurting for cash? The purpose of (Click to continue reading this post…)

On September 25, 2008, the Federal Trade Commission held a workshop on the debt settlement industry. Representatives of the credit card industry, consumer protection groups, the credit counseling industry, the debt settlement industry, and the FTC were present at the day-long event. Over the past few years, concern has mounted within various state and Federal (Click to continue reading this post…)