LEGAL INFORMATION AND DISCLAIMER:
Information within this report does not constitute legal, financial or similar professional advice. The author assumes no liability whatsoever on behalf of any reader of this report.

My Financial Low Point

I was 54 years old and living beyond my means. That is not to say that I lived lavishly, but my outgo regularly exceeded my income.

This had been going on for a while, and I had my reasons (excuses), but in the summer of 2003 it dawned on me that I was in trouble.

My mother had passed away in December 2000, and I guess I was anticipating and relying on getting a modest inheritance to jumpstart my finances. But that inheritance proved smaller and slower coming than I expected. Also the stock market took a dive and wiped out some of my mother’s estate. By 2003, my plans to pay off my debts were pretty much derailed. Instead I had let wishful thinking get the better of me.

Finally one month I mustered the nerve to add things up, rather than simply paying the “minimum” so I could stay afloat (and protect my credit), and I was shocked to find that my total debt was $45,389. Ouch!

When I confessed this dilemma to a woman who was helping me get my life together (a.k.a. my success coach), she suggested, in fact insisted, that I contact her friend and respected lawyer, Robert Hinsley, who specialized in such cases.

As I talked to him, I realized that with the willing help of my creditors I had painted myself into a corner that really threatened my future. Now I had four choices, none of them pleasant.

First, I could pray for more income, keep paying the best I could, and in the best case I could have paid off the debts. That would have taken many years and cost me $90,000 at least.

The second choice was bankruptcy. This would have been traumatic for me, would have involved my wife, would have wrecked my credit for many years, and so I wanted to avoid this option at all costs.

The third possibility was to simply stop paying and let them sue me. This would have probably been a nightmare. I would have been easy prey for their lawyers, and the assets that I still had would have been “easy pickings.”

The last and best option was to hire a lawyer like Mr. Hinsley. This is the choice I made, and in retrospect, I know it was the right choice for me. The main advantage of this approach was that with Hinsley in my corner I was not defenseless, and therefore much less likely to be sued.

I Got a Lawyer

In fact, I was much reassured to learn that Mr. Hinsley had the experience of having represented more than 13,000 debtors like myself. In doing so, he had already found the best lines of defense (and offense if necessary), the best ways to “play the cards” as related to each individual creditor, and the most likely route to settle cases when it was in his client’s interest. And because of his successful cases in court, the card companies were (and are) reluctant to take him on. In general, they prefer to pursue less well-represented debtors (and there are many of them).

This is not to say that I was able to walk away from these debts without risk or consequences. As I said, this was only the least risky of my options.

Now, two and a half years later, four of my five creditors seem to have given up on trying to get money from me. They may still change their minds and sue, but so far so good. And Hinsley’s experience has been that at this late date, a lawsuit is not expected.

Now, since hiring Mr. Hinsley, I do consider these companies as adversaries. I have no hard feelings against them, but I realize that their aim is to squeeze every dollar they can from me, and my aim is to avoid this as much as possible. In pursuing this aim our actions are designed to legally make things as difficult as possible for these creditors. As I said this strategy has worked like a charm for me so far.

The remaining creditor, Citibank, did sue me. This was disappointing but not a shock. I think to have had all this debt “simply vanish” would have been too good to be true.

After about six months and several pre-trial hearings, they settled their $6700 claim against me for $3500, and agreed to report this debt as “paid.”

All in all, this experience has cost me some legal fees (which I consider quite fair) and some discomfort, but in return I have saved many thousands of dollars and much heartache.

For all these reasons I can and do recommend Mr. Hinsley’s firm to anyone struggling in similar circumstances. I’m not proud that I was forced to renege on my debts, but I’m grateful that I was able to “stop the bleeding” so I could get back on my feet.

Sure my credit score may have suffered some, but it when you are in danger of “going off a cliff” this is a small price to pay. A credit score is just that- a grade (like in school), and I’ll take an $80,000 savings in cold hard cash over a “grade” any day. And Mr. Hinsley tells me that I will be surprised by the extent to which my credit can be cleaned up and rebuilt.

The Credit Card Trap

As I said, I was not blameless. I, like many debtors, overestimated my ability to shoulder debt and was too optimistic about my earning prospects. I spent money I didn’t have on things I didn’t need- like most people.

But mostly I increased my debt just to stay afloat and postpone my “day of reckoning.” I “robbed Peter to pay Paul,” using the pre-approved checks that the companies send in order to keep up with my mortgage and utilities. I even used these “loans” to hide my situation from my wife for as long as possible.

I couldn’t tell you how much interest I was paying (because I could hardly bear to look at my monthly statements), but it was a lot, because after a few late payments my interest rates had skyrocketed.

Today I see that this all happened not just by chance. I was lured by the promise of low interest balance transfers to open new accounts, and tempted by convenience and desire to “max them out.” But now I see that this is part of a deliberate strategy used by the card companies to maximize their profits. They don’t make money from their “responsible” customers. They make their real profits from the “revolvers” who make minimum payments, sometimes late, and who are therefore paying interest rates that would embarrass a loan shark.

Credit Card Debt Is A Drug

When making my case to the mediator who helped me settle my Citibank suit, I said: “On the one hand I owe them the money. On the other hand, credit card debt is a drug, and these guys are drug dealers.” He had to agree.

Like a drug, the credit card offers an immediate “high,” but this is followed by years of pain. Like many drugs, there is a legitimate use for credit, but when it gets out of hand things turn nasty. And, like a drug, credit card spending is highly addictive.

What To Do?

When confronted with the “hangover,” the debtor is faced with choices like the ones I found, only they usually don’t know about their legal options. They are offered such “solutions” as debt counseling (these folks are usually working on behalf of the card companies), debt consolidation (which often worsens the situation), and bankruptcy (which is not needed).

No wonder people are so desperate and often irrational in these times. Divorce and even suicide can sometimes result. This is stupid and tragic.

A Well Laid Trap

This experience has made me rethink my use of credit. As a result I have resolved not to use credit cards at all for now, and to be much more careful if I ever get cards in the future. I have replaced my credit cards with a debit card so I still have the convenience of sometimes paying with plastic, but now I “pay as I go.”

Considering my recent difficulties I think this is a good habit for me to get into anyway. Also, I realize that dangers lurk behind those 0% offers. (Have you ever really read the small print.)?

When we sign up for those offers we either don’t consider the possibility that we’ll be late with payments or that “**** happens.” And if we are already in trouble, we will usually take a new card out of sheer desperation, with little thought of the consequences. Either way we are in danger.

These offers are a virtual minefield of fees, penalties, clauses and arbitration. They are designed like sand traps on a golf course to trip up the average or below average debtor. As sure as rain, a certain large and profitable percentage of these customers will fall into these traps, and soon be paying up to 29% interest. This is where their real money is made. They have it down to a science. The objective is to milk you for all you’re worth, without tipping you over into default. It’s that simple.

Put Things In Perspective

No matter how high your debt, now is not the time to panic. Instead it is a time for clear thinking and smart actions. Yes, it’s a “wakeup call.” It was for me. But I was lucky to have an understanding wife and a good lawyer. Early on I told myself “this is not the end of the world.” I had my health. My “secured debts” (mostly on my house) were paid and in no danger. And the threats of lawsuits, judgments, etc. were not immediate.

With Mr. Hinsley’s help, I fought off these threats and today I’m well on my way to financial recovery. I’m sorry that I didn’t “see the light” earlier, and avoid this trouble, but as it is I just count myself very lucky.

Parting Advice

Looking back, the main advice I can give to folks with this same problem is this: get a lawyer, stop paying on your cards if that seems your only way out, don’t declare bankruptcy (although the bill collectors will tell you that it is your only alternative to paying them), don’t consolidate your bills, don’t get so-called “consumer counseling” (a scam), and don’t refinance your home (exchanging unsecured debt for secured debt).

This is my advice if you are truly “over you head” in debt, yet have some assets and hope for “better days.” If things are not so bad, then go ahead and pay your debts by all means. You’ll feel good, and you can keep you “good score.” But given the choice between fighting and surrender, I say fight! If you do, like me you can win.

Your Plan

If this is your choice, get Hinsley or someone else like him who defends these cases day in and day out. Next follow his directions. This means reporting all collection calls, letters and demands so your lawyer can respond to them in a timely manner. And finally, I recommend that you put aside into savings the money that you are currently spending on your minimum payments. This will be your reserve fund for legal fees and any settlements or judgments that result from this situation.

Finally, be realistic. You’re in a jam! You might lose a case or be forced to pay more than you’d like to clean things up, but considering your alternatives, I feel that this is your best way out.

Good Luck!

Remember that many wealthy people have themselves been broke in the past, even bankrupt. Don’t let your current setbacks convince you that you’re a failure, doomed to stay broke. This is wrong! Instead, commit yourself to learning from any mistakes you’ve made and to rising from these “ashes” to your greatest heights, both financially and spiritually. You can do it!

To Your Success,

David Miller

Mr. Hinsley,

Thank you so much for the time you spent to initially call us after Chris’ e-mail to you, your offer to pay part of our trip to attend your weekly seminar, and the seminar itself. We greatly enjoyed our time at your offices and found the information you shared with us to be invaluable. Also, the $200 check you gave us to cover half of our trip was very much appreciated!!!!

Although we don’t think anyone we’ve talked to since the seminar has taken the steps to contact your offices yet, we will continue to recommend you.

The services you are providing are such a great help, and provide great peace of mind to those like us who have found ourselves caught in the credit-card trap! Our eyes have definitely been opened to the credit card companies and their lust for huge profits at the expense of peoples very lives and livelihood!

We really appreciate your generosity!

Chris and Chad 6/2006

Dear Mr. Hinsley,

About six months ago, after sitting through three of your presentations,
because I just could not believe anyone could really help me get out of
debt, I finally signed up for your help in getting out of debt.
I had tried CCCS and after several months realized I would be about 90
years old before my debt and 2 credit card companies would be retired.
For this I have to say...

Thank You
Sincerely,
F.P.

Dear Robert,

Hello. I would like to express my heart felt gratitude for relieving some
of the stress around our home. If all I ever did was to use that script it
is worth the money. I am certainly glad we came to you. I can answer my
phone without fear of reprisal from the credit card companies. Amazing what can happen in only two days!

Thanks again for your assitance.

Sincerely,
Client

Dear Mr. Hinsley,

Just wanted to take the opportunity to thank you for talking with us, but
most importantly to express our extreme appreciation to you and your staff for making our situation so hopeful.

Your intervention, and your positive and confident approach to our case,
relieved the anxiety and nervous tension associated with credit charges,
which only escalated and compounded emotions dealing with chronic disease and no employment.

Please know that we will always be grateful for your help and are willing
to promote your good will and humanity in any way we can. You are a champion for people in real need and are to be applauded.

Sincerely,
S.K.

Dear Mr. Hinsley,

It is with respect and gratitude that I write this letter. Your kind and
gracious staff make communicating with your office a pleasure. Compliment this with your powerful ability Mr. Hinsley, to convey knowledge of the law in simple, understandable terms - explaining law in non-lawyer terms - is a blessing.