Snorting Debt

Copyright © 2009 John Gliha   

Your debt is profit to a few people who actually have invested in your willingness and ability to go to work, earn money and then pay credit cards and mortgages.  Did you know that it’s actually more profitable for these investors if you are in default or unable to pay?  You see, our economic system rewards corporations for losing money, and provides them with outrageous profits for investing in your debt.  If you think CEO’s are not justified in being paid millions in bonuses, that’s just the tip of the iceberg, my friend. 

Wouldn’t you like to be able to create money just by typing some numbers in your computer’s spreadsheet and then tricking everyone into believing you have money to lend and that you can charge interest rates in excess of 29% or even 49%? And how about after making all of that profit, free money, you have the taxpayer base cover your business expenses through the tax system and inflation and then operate in perpetual bankruptcy while the officers of your corporation get millions in bonuses? They call it “…riding the gravy train.” 

I’ll let you in on another dirty little secret.  When the creditor sues you in court, that lawsuit creates bonds that are insured and given a credit rating and traded in the stock exchange.  The creditors that are suing you are investing in these bonds also and the face value of the complaint is just a fraction of the bond value while these cases are being traded.  Each of these cases is an asset and has its own inventory tracking number. 

Is it starting to make sense?  Your creditors want you in default because they can foreclose or sue you and turn their cash flows into something more profitable, lawsuits and judgment liens.  They can take your property using the local sheriff while they remove the debt to another file of accounting records that nobody cares about.  That way they can keep their good credit rating through Standard & Poor’s or Moody’s while investors buy up more of your debt like cocaine addicts to push the cycle even faster.  As if that weren’t enough, the creditors play on your ignorance of cash flows and set up “settlement companies” which are nothing more than agents of the creditors themselves, and get you into yet another payment plan. 

Did you know that debt settlement is illegal in at least 7 states and that if you hire an attorney to help you get out of debt, you’ll pay 7 to 10 times more than legally necessary?  The system is rigged; these guys get kickbacks from your creditors while charging you up front to get into nothing more than just another payment plan. 

Look, this isn’t brain surgery, what we have here is a very sophisticated system of stealing.  You are being mugged everyday and if you think you are dealing with your Aunt Betsy, who lent you a hundred bucks last Christmas, let me give you a revelation.  You are dealing with the most sinister thugs in human history.  These "creditors" have no conscience and they operate above the laws of this country, the same laws that you and I are penalized for breaking.  To them, breaking the law is a business practice, even if sometimes it has a cost.  They just pass that cost onto us. 

Run far and fast from those selling anything that sounds like a negotiating service or payment plan for your debts.  These get you into default and not only cost lots of money up front, they can and do result in wage garnishments, bad credit and levies against your property and cash.  The least costly method of getting out of debt is to first change the habits that got you into debt, then change how you manage your property and cash flow so that creditors cannot take it no matter what they do. 

Stop using personal credit to borrow money and replace that habit with a business from which money can be borrowed and lent back to you while it makes sense; allows you to build your net worth, the direct opposite of personal credit.  Settlement, negotiating and even bankruptcy, are all just different payment plans, continuing the same habits that got you into debt.  If you want to change your situation quickly and achieve different and better results, you must change your habits.  And you don’t have to reinvent the wheel, these new habits are already in use by those who do have a high net worth.  You only need to open your mind and accept them and then learn them and put them into practice.