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Financial Freedom

Monetizing With Ecommerce

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What Is Ecommerce?

For the purpose of this discussion, Ecommerce is the online retail sale of products that you buy wholesale.    Nothing fancy-schmancy, a simple but powerful concept!

This is a time tested and ancient way of doing business.  It has been this way, probably for thousands of years.

You go to the store and buy a product at retail price that the store bought at wholesale.   You might even do this every day of your life.

This is called commerce.   The online version of this time honored business model is Ecommerce.

As funny as it sounds, Ecommerce is nothing new, it is just a modern twist on what has always worked.

You can sell your digital products side-by-side with your physical products if you wish.

I’ve sold both physical and digital products.  I do believe that the physical product side is, generally speaking,  going to be more lucrative than the digital product side.

Of course, there are exceptions, that is why I said ‘in general’.   LOL.

But more often than not, I think a real business, built on real, physical products is an easier rode to ride.

Go ahead and call me crazy (or ignorant) if you wish!

Why Consider Ecommerce?

Many people are looking to monetize their websites and perhaps even build a full time income or to increase the revenue of an existing business!

As I’ve mentioned before it is not easy to build a business.

I also mentioned how it might be necessary to generate additional income streams when you are facing a lot of debt and (just) being frugal still isn’t enough based on current income.

Just do not be blinded to the fact that whatever type of business you end up building, it is likely going to take a good bit of work!

With Ecommerce, you can build a list of buyers who have already purchased a product from you.  If you are into ‘list building’, that is exactly the kind of list that you want.

You can also get affiliates to promote your Ecommerce store products for you!    You can even have a data feed for the affiliates whereby they display your products on their sites.

BTW: If you are really into affiliate marketing.   We have an affiliate program at:  Toothy Grins Store  – just scroll to the bottom of Toothy Grins Store and there you can sign up for our affiliate program.    It pays a little better than some of the ‘big name’ retailers out there do.

You can take (more) advantage of PPC (Pay per click) marketing.  Because you are directly selling a product, it MIGHT be easier to create a successful campaign than with other types of products.   The search engine PPC programs seem to favorably regard Ecommerce stores over some other types of sites.

It’s clear that you are selling a product, so there is less chance for misconception on the part of your readers / site users.  This may be another reason that SEs (Search Engines) like Ecommerce sites.

When people arrive on an Ecommerce site, they can see right away that there are products for sale there, they have no need to fear a hidden agenda.  Indeed, many times they are looking to buy the exact product you have on your site.

How Does Ecommerce Fit In With Blogging? 

That is fairly easy to explain.  You could use your blog to drive traffic to your Ecommerce store.

You Could:

Blog about your products and display images of them.

You can post positive feedback and testimonials from YOUR customers.

You can blog product related stores about the products you sell.  These can be your own stories or those of happy customers.

Ever wonder if you were getting credited for all of your affiliate sales?   Well, with an Ecommerce site, you KNOW if a sale has been made.

That is some of the power of Ecommerce over other forms of monetization that exist on the Internet today.

Some examples of Ecommerce stores, aside from Toothy Grins Store, are Amazon, Barnes & Nobles,  Best Buy,  Dell,  Apple, WalMart,  and many, many others.

You might have better luck selling physical products over digital products.

Ecommerce seems to work for a lot of people.

It may not be right for everyone, but maybe it is right for you?

Comments / Questions are OPEN on this post. 

Become Debt Free NOW!

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What Do They Really Have To Offer?

That seems to be the catch phrase of a lot of companies that want to give you financial advice, doesn’t it?  (Become debt free NOW).

Let us focus on this for just a moment.  The question becomes:  What kind of fancy advice or service can they really give you?

Debt is a widespread problem.   And it requires just a little bit of thought – not too much – just a little.

Basically it comes down to this – You have to spend less than you earn.  Use your monthly surplus to 1. pay down any debts. 2. Save money.

Rinse – Wash – and Repeat until you achieve any financial goal you happen to be after.

Not Enough To Reach Your Goals?

The other laughable thing about much of the financial advice you can pay for is that whatever scheme or plan they come up with, execution still depends on your financial abilities.

What if you have a goal that is beyond your ability to reach with your current source of income no matter how frugal you become?

If that is the case, you will want to develop new revenue streams.

Here are some ideas:

1. Start a business. It is not an easy thing to do and it IS hard work. BUT, there is potential there – if you can get it going.

Momentum is the key. You have to develop momentum. That is forward motion in simple terms. Getting a big rock to roll takes a LOT of effort. But once it gets rolling it can really go – feeding on its own motion.

Getting started is the hard part. Don’t fool yourself though. If the money coming in does not exceed the money going out, then you have a liability and not a business.

Do not quit your day job until / if your business reaches the point where you make many times the income that your day job provides. Only then MIGHT it be safe…

2. Passive income such as Real Estate, publishing books or music and no doubt a variety of other similar concepts can work to provide additional revenue.

By the way, publishing can feed upon itself and generate momentum. A good example would be writing a book that develops an audience. This would be a group that is hungry for your next book. Once you have a large enough audience, you just keep on writing and additional revenue comes in. Without the audience – not so much!

3. A second job? – No one likes the idea of taking on a second job. But if it can get you over the hump to where you get your debts paid off and can actually start saving, it might be a good solution. In college I would work several part time jobs just to keep things going. But, this is not for everyone.

Overall Lesson: Bring in more than you spend.

Additional problem to overcome: Money loses its value over time.

Disclaimer. I’m not giving financial advice here, find a professional for that.  I’m just sharing my thoughts!

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Why Does The Value Of Money Constantly Decrease?

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The Value of Money Is Always Decreasing

The value of a dollar is not what is was 10 years ago.    Ten years before that (twenty years ago) the value of a dollar was even higher.   50 years before that it was a LOT higher.

I was contemplating postal stamps.  I think they are around  45 cents now, I can remember when they were under 20 cents  and in the early 1900s they were probably around a penny.

You cannot buy the same things today for the same money that you did 50 years ago or even 10 years ago or even five years ago.   This is the objective proof that the value of money is ever decreasing.

I’m sure you have plenty of your own examples.
Why Doe The Value Of Money Constantly Decrease?

It has to because the entire monetary system is based on – well it is simply based on faith.    The days when you could take your dollar into a bank and get an equivalent amount of gold or silver are long gone and they will never come back.

One of the reasons for this is that there is not enough gold and silver in the entire world to cover the currency that is out there.

As more money is printed the value of each dollar decreases.  Central banks print money all of the time and they especially do so when the governments they support need them to do that.

At the same time the central banks make more and more off taxpayers through the interest they charge when they help the governments out.

 

Lower Level Banks And Lending

To complicate this matter further.  Banks are given the legal right to create money that does not exist.   When someone deposits $100 into a bank account.  The banks are allowed to loan out 9 or 10 times that amount – depending on the current law.   Even though the money does not technically exist!

And they charge people interest in exchange for?   Nothing essentially?

So you see, they are also responsible for increasing the amount of money that is out there in the world.   This further decreases the value of that particular currency – wherever it should exist.

 

Banks Lending Money That Doesn’t Actually Exist Seems Strange, Doesn’t It?  

Clearly, stealing money from someone is against the law.    But isn’t creating money a sort of theft in and of itself?

The legal right to create money out of nothing – think about what that means.  Then you get to charge interest ( a fee) for that money.  Kind of makes you want to open a bank, doesn’t it?

This is why the value of our money constantly decreases.   This also has the effect of making it harder to retire because the money you have will be worth less in 10 years.

What are your thoughts?  

 

The THRIVE Movie – A Story About Personal Transformation

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debt from bank lending

Thrive is a movie about transformation on two counts.  The first is a barely metioned personal transformation in this film / documentary, but is very remarkable none-the less.

The first transformation is the personal story of Foster Gamble – once heir apparent to the Gamble portion of Proctor & Gamble.  He was being groomed to take over and be THE power player in the company.  But Foster had other ideas.

He was able to escape the temptation of having greater power.  He was able to let go of that – something that many people might fail to do if they had the same opportunity!

Instead, Foster decided to answer a burning question.  He knew that if he could find the answer to this question that it would make a REAL difference.  This difference would be one that would affect billions of people around the world.

Foster gave up the easy path that was handed to him in the hope that maybe he might possibly be of service to the billions of other people on this planet.  He did not know if he would find the answers he was looking for and he knew the path was going to be hard.   He knew that those who wanted to hand him power would be very disappointed.  But, he was willing to make the sacrifice anyway.

That is REAL transformation on a personal level.  He succeeded in giving up power and comfort for the pursuit of serving others!   His story is a good one that serves as a shiny example for others.

The second transformation is the potential for massive positive change for billions of people around the world.  The entire world could be a vastly different place, if only people could hear this message and then take action.  The things that Foster figured out over the last 30 years could be of such benefit to YOU,  personally.

Risking alienation and possible persecution by the group that he once was a part of, Foster reveals things that can most certainly make a difference in people’s lives – a difference in YOUR life.   The question is:  Are you willing to listen?  Are you ready and willing to HEAR about those things.  Are you ready or able to experience your own transformation?

Hang on to your seat and check out the THRIVE movie for yourself which is available at THRIVEMovement.com!

Fractional Reserve Lending

One of the best explanations of fractional reserve lending and how it takes advantage of you and your children and your parents before you is in the THRIVE movie.

I think Foster did a very thorough and honest job of putting the very confusing pieces together.

While it is only a part of the overall theme of the movie, his simple and very impactful explanation of the fractional reserve lending system and how it slowly deprives people of their wealth and their personal power is perhaps the best and most elegant that I have ever seen.

The simple explanations are usually the best. If people understood how this system worked and how it deprives them of their wealth, power and assets over time, there might be a stronger call for banking  and financial system reforms.

Banks Make Money

Let’s put it this way. The banks have the power to make money out of nothing. You do not. They have the power, not always literally but figuratively, to create money out of thin air.

You only have the power to make money through your work, investment or effort of some king.  But you are not allowed to just print money.  That would be considered illegal for a persona like you or me.

Central banks such as the federal reserve, on the other hand, have the power to directly create money, literally!  This is at your expense and detriment, but it is not easy to explain to people. That is why I like this movie, it explains it in just a few simple sentences.

Regardless of whether it is a ‘normal’ bank or a ‘central’ bank,  you lose out in the end.

Why is this important to understand? Because it slowly deprives you of wealth. And it quickly makes the masters of this system unlimited wealth, with little to no work involved.  Their gain is based on YOUR effort.

Ultimately, “they”  have amassed and continue to amass huge fortunes based on your labor, your work, your efforts and your sweat – and that of the billions of other people on this planet.  You did the work, and they continue to reap the benefits.

Still don’t see it? Let Foster show you with his simple but powerful explanation in the movie, THRIVE.

What If Enough People Understand The Problem?

The secondary problem is that even if people understand, are they willing to do anything about it? I think the answer to that question is buried in the need for quality and quantity information. The understanding needs to be deep enough and that masses of people will understand and begin to question The System.

Without that mass awakening, there is little chance for a change.  It is in the US that this probably needs to start to be addressed first.

Some argue that the political process is completely controlled by banking. And that may be true. However, politicians need something even more desperately than the bankers’ money. They need votes.

I know that many argue that the voting system in the US is completely rigged and controlled.  I am not so sure to what degree that is true, but it is certainly something worth examining more closely.  But, I digress.

If there is any hope at all to fix this problem, it is in the people of the US. But who knows how long the people will retain the ability to make a difference? Freedoms are being eroded and citizens of the US are slowly losing more and more personal power.

But on the other hand, people are not completely unaware. Therefore change is still possible.

Energy – Control Or Liberation? 

The Thrive movie goes into the equally important topic of energy control.   If it were possible to have cost free energy,  which  Foster believes to be true, it would be the first step to leveling the playing field and empowering the people of the Earth.

Foster and his wife Kimberly suggest that the elimination of poverty may very well be plausible with the availability of free energy. Once everyone has unlimited access to free power, they believe it will really make a big difference in the daily life of all people – across the planet.   And I suspect they are correct in this assumption.

The movie THRIVE is worth seeing. You should watch it as soon as you possibly can.

Are YOU Ready For Personal Transformation On Such a Huge Magnitude?

I hope you will take this hint and start to unravel the mystery for yourself.  See the movie THRIVE now and let your eyes be opened to a greater extent than ever before in your life.   Let the doors of perception, swing wide open.  Watch THRIVE now.

Credit Card Company Complaint Options

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Sometimes you run across a credit card company that is not very helpful with addressing wrongs that have been done to you.

This could range from unreasonable fees to being double charged for items to any number of other issues. I’m sure you can think of one or two scenarios yourself.

The first step is to contact the customer service of the credit card company. Their number is usually printed on the back of your credit card.

Keep notes of who you talk to, what was said and the date and time of the call(s).

If things are not going well, ask to talk to a supervisor. Good customer service centers always have supervisors you can talk to.

If the agent refuses, that may be the first sign that this company is not good at handling customer problems.

You can try looking up the corporate office for credit card companies as well.

If all of this fails to provide the help that you need, then it is time to go a little further.

This is also where the detailed records that you previously kept will come in handy.

The more documentation you can provide either to customer service managers or government agencies is going to aid your case.

Organize the data in a clear and concise way that illustrates what happened and how your attempts at using the ‘normal’ channels for help failed.

1. Use the US government website to lodge your complaint (see below)

2. Use your State’s Attorney General Office as well as the State Attorney General’s office of the State the company’s corporate office is in. (see example further down the page)

Here is a web page for a US government website where you can file a complaint against any credit card issuer that has crossed the line as far as what is right and morally acceptable.

https://help.consumerfinance.gov/app/creditcard/ask

You can log a complaint against credit card companies there and you can also get a tracking number.

They have a large section of categories for complaints that (at the time of this writing) include:

Advertising and Marketing

Application processing delays

APR or interest rate (some companies are quite ridiculous in what they charge)

Arbitration

Balance Transfers

Balance Transfer Fees

Bankruptcy

Billing Disputes

Billing Statements

Cash Advance

Cash Advance Fee

Closing/ Cancelling Account

Collection Debt Dispute

Collection Practices

Convenience Checks

Credit Determination

Credit Card Payment / Debt Protection

Credit Line Increase / Decrease

Credit Reporting

Customer Service / Customer Relations

Delinquent Accounts

Forbearance / Workout Plans

Identity Theft / Fraud / Embezzlement

Late Fees

Overlimit Fees

Other Fees

Payoff Process

Rewards

Sale of Accounts

Transaction Issues

Unsolicited Issuance of Credit Card

Even if your complaint does not fall into this rather extensive list, you can leave your complaint anyway.

Sometimes you need a third party to intervene on your behalf.

When customer service is stubborn and unhelpful and you cannot get injustices corrected, perhaps you do need such help.

Remember, credit card companies are there to provide a service and they make a lot of money off people like you and me.

If there is a problem, they should definitely take care of it. If not, perhaps you can transfer your balance to another credit card company? Hopefully, that will be one that provides better service.

What I said here is stated in general and does not apply specifically to any individual credit card company.

In addition, the attorney general for every state has a consumer protection role and function. They will often write a letter to the company that gets A LOT MORE attention than your personal complaint to the company.

You should exhaust other options first and only turn to the attorney general when you feel there is little other option.

Each state has its own Attorney General. As an example, here is some information for the Attorney General of The State of Virginia:

the State of Virginia can be found here: https://www.oag.state.va.us/Consumer%20Protection/index.html

The site states: ” Individual complaints play an important role in notifying the Attorney General about possibly deceptive or otherwise illegal practices taking place in Virginia, which can lead to enforcement actions or legislative initiatives; however, the Attorney General’s office is not the central clearinghouse for consumer complaints in Virginia. The Virginia Office of Consumer Affairs (“OCA”), one of our client agencies within the Department of Agriculture and Consumer Services, serves this role. “

In an issue unrelated to credit cards, I was having trouble with a heating and cooling company.

They even told me that their owner was on vacation when I asked to talk to him. That same owner later told me that he was not on vacation.

So his employee lied to me.

Anyway, they ignored my calls for help until I contacted the Attorney Generals of two different states.

This was because I lived in a different state than their office was in.

I got very prompt service after that and their top worker came out to fix my problem. He discovered additional problems as well and admitted that his workers had not done a good job.

He also admitted that he did not inspect this job the way he inspects other jobs.

The moral of the story is that it sometimes pays to contact the attorney general when you are having a problem.

If you think the information on this page will be helpful to others – share it:

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Using Secured Credit Cards To Build or Rebuild Your Credit

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A secured credit card is one that you pay a deposit on.  This deposit is held by the company to ensure that you pay your bill.

Generally speaking, the card issuer will keep your deposit as a ‘safety measure’.

You may ask, “Why would I do that”?    This is really only for two situations.  The first is for people who have lost all of their credit rating and can no longer get any credit from anyone.  The second is for those just starting out who have a zero credit rating and need to build a rating up.

There are actually more options for the second group.  The first group is more risky because they ‘messed up’ at least once before.

In either case, the idea is to establish a record of responsible credit card use.   This is to create trust between you and future potential lenders.

You are showing them that you know how to use your credit in a way that is appropriate.  Their chief concern is always losing their investment in you.

If you do not pay your bills, they lose money.  They are not in business to lose money.  Obviously, when you don’t pay your bill, they have lost out.

 

If  You Are Able To Get A Secured Credit Card

 

You won’t be permitted to spend above the amount you have on deposit with them.

You do not want to either.  You will want to pay your balance every month before the next billing cycle starts.

The reason for this is that you want to show that you are responsible with your credit.

You want to show them that you repay your debts on time, every time.

It may take a solid year.  But after that time, you may find that you will be able to get an ‘unsecured’ credit card.

An unsecured credit card is one that is based on the faith of your signature and does not keep a deposit.

If you make it to this stage, you will want to maintain your credit by continuing to be responsible.

We all have to work within the limits of our budget.  Once you show them you are responsible, you will want to maintain their trust by continuing to be responsible.

 

Be Very Careful When Selecting A Company That Offers Secure Credit Cards


You should be extremely careful when seeking out a secured credit card.

It can be the pathway to rebuilding your bad credit past as well as a good way for people who have never had any credit to develop a credit record.

There are decent companies that offer secured cards.

However, the secured credit card industry appears to have a lot of scam artists in it as well.

There are people / companies that might take advantage and hurt you.  Do your homework and be very careful with which company you choose.

Some charge much higher annual fees and interest than is reasonable.

Apparently, there are some which are outright scams.  They use your whole deposit up in fees that you probably didn’t even know about.

Again, you really need to do your homework before sending your money to anyone.

Beware of those who want a fee before you even get your card, that is a sign of trouble.

You also want a company who reports on your credit use but does not report your card as a ‘secured’ card.  If they do, this could potentially scare off other lenders.

A reputable company should understand this point and should not report your activity (credit card use) as being on a secured card.

Finally,  even though I said it before,  be very, very careful.  Check everything out and don’t send your money to just anyone.  Make ‘triple’ sure you are working with a reputable company before getting a secured credit card.

Otherwise, you could end up with more headaches than you started with!

The good news is that if you focus on responsible credit card use, you may eventually find your way back to a good credit rating.  Of, if you have never had a credit rating, perhaps you can now build a good one.

It might also be to your benefit to understand how the world’s banks work.

Then, there is also Jimmy’s credit repair story

If you enjoyed this, please share it with others and comment below.

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Responsible Credit Card Use

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Recently, I had the experience of being offered a discount at a clothing store, if I would just sign up for their credit card.   I did it to get the 20% discount they were offering.

I don’t like opening a new line of credit for any reason.   I paid the entire bill off before the billing period ended so that I wouldn’t be charged any interest.

This is the secret to responsible credit card use.

Now days, many companies are charging VERY high interest rates on their credit cards.  It would be best if you did not run monthly balances on your credit cards.

The interest is just plain not worth it.  I feel your pain, if you are one of those people who is stuck with a whole bunch of credit card debt and you keep getting into situations where you add more.

This is something that you absolutely must stop right away.   It is a path to a bad end.

The road to recovery will also be painful.  But there is no point in putting that pain off until later.  You’d better start right now and dig yourself out of that big hole you have created.

It could mean saving and scraping every penny.  Give up on cigarettes, drinking, and other vices.  Aside from saving the cost of those vices, you will also be doing something good for your body.

If you are a coffee shop junkie, it is time to give that up as well, at least until your credit card debts are paid off.

You may have heard this advice before, but it is worth repeating:

1.  Take your highest interest card and pay that one off first.

2. Take the next highest one and pay that off as well.

3.  Move on down the list until you have all of them paid off.

Think Extra Income

Think about picking up an extra part-time job.   You might also consider doing short contract work.  Even if you think there isn’t work you can do available, you might be surprised.

There are people who are willing to pay for work over the Internet.  You’ll want to go through a respectable third party company that will ensure you get paid for your work.

Between cutting back on your expenditures and picking up some extra work,  you might be surprised at how much of a dent you can make on those credit card bills.

Bottom Line

Pay off your bills at the end of the billing cycle, do not carry a balance.

If it is too late for that and you are already carrying excessive balances, you must pay them off before things get worse.

Once that is done, then you want to work on building up some savings,  a cushion to protect you from short term cash needs that might be tempting to use your credit card for.   Now is the time to start working on the problem.

You may also be interested in reading:  Using Secured Credit Cards to Build Or Rebuild Your Credit

If it is already too late, you might find Jimmy’s credit repair story interesting.

Leave your comments below.

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It Was An Obvious Mistake To Sell My APPL Stock!

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Today’s date is January 30th 2012  – this is a reference date provided for those who find this post in the future.

On January 21st 2012, I sold my Appl stock and documented by reasons.

At the time of this writing, AAPL stock is trading at:  452.91 per share.  Obviously, I misjudged the situation.

I sold at around $424 a share.  I ditched the stock right before the Earnings report came out.

I have read that more times than naught, a stock will decline after earnings. That was one of my justifications give in the previous AAPL stock post.

I expected that even if there was a sudden increase after earnings that there would be a whiplash decline within a few days.

Sadly for me, I was mistaken.  It looks like AAPL is in a definite rise.  And I have missed out on a nice gain.

Theoretically speaking I have ‘lost’  almost $20 per share by jumping out.

I believe that I read analysts expect AAPL to go above $550 a share.  Of course, you cannot put much stock in that (pun intended)

Analysts are often wrong and even if they are correct, the amount of time before it reaches that height could vary significantly from what would be reasonable.  One day AAPL may very well exceed $550 per share, but we don’t know WHEN that will be!

So, my little folly lends more credence to the ‘buy and hold’ philosophy.  But, after living through the huge decline in stock prices back in 2007 / 2008  I just can’t put much faith in ‘Buy and Hold’ anymore.

On the other hand, there will be plenty of experts who will be willing to bash me for this kind of logic.  Let them!  It’s my money and my loss or gain.

There is much risk in investing.  You have to make your own choices.  I am by no means an investment expert.  You should always consult the professionals of your choosing before making any investment decisions.

I hope I make better decisions in the future.  But at the very least, I gained on my trade.  It’s just that I could have nearly doubled that gain, had I held until today!

No one can accurately predict short term moves in the market.   Let the investor be ware!

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What Is Passive Income?

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Many people are interested in developing passive income. However, I think the term ‘passive’ is both a misnomer (a false name) and a relative term.

For example, a type of income that people often refer to as ‘passive’ is rental property income.

This is where passive is a misnomer. If you have enough rental property income to pay your bills then you also have a lot of management responsibility.

1. Someone needs to take care of things when they break.

2. You still have to take care of your property taxes.

3. You still need to have some insurance against catastrophe link the notorious ‘black mold’. – Getting rid of it can be VERY expensive.

The basic point here is that there are still problems to be handled.

It is true that you can hire a property management company to do it all for you – provided you can still keep enough income to take care of your lifestyle.

A few disasters can cause you some serious problems though and potentially disrupt your passive income. Perhaps not all of those disasters will show up in the form of ‘natural’ phenomenon.

A Real Estate agent I knew had a LOT of rental property. The problem for him was that he owed a lot on those properties in the form of mortgages. Since,
many of those properties were rented out to lower income families, when the economy got rough, many of those families left.

This left him with limited income but tons of liability in the form of those mortgages. I’ve lost touch with him, but I do think it didn’t go well.

Don’t get me wrong though, Real Estate is a great form of passive income. It’s just that the concept that it won’t be any work, as implied by the term ‘passive’ is just a little off.

Are There Better Examples of Passive Income?

This is where the term ‘passive’ is relative in my mind. Truly passive income is to me a false concept.

In the above example, my friend ran into some serious problems that I think he ultimately was not able to solve. That means he probably had to give up some or all of that property in the end. If there is no one to rent to, there is no income.

Of course, not all people who own rental property owe money on it. If you own the property outright, that is the best possible situation. Leveraging, complicates things and can lead to problems.

Now consider a different scenario. Instead of having your income rely solely on a handful of renters – or a few dozen – what if your income was stabilized by earning a LITTLE money from a WHOLE LOT Of people.

For example, if you were earning a few dollars from thousands of people instead of hundreds of dollars from a dozen or so people, wouldn’t that be better?

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Jimmy’s Credit Repair Story…

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Young Jimmy was a strapping lad of about 24 years old or so.  He was a very entrepreneurial minded young man.

He did what many people seeking to start a business do.  He used ‘other people’s money’.

Since he didn’t have access to a big bank loan, that meant using his personal credit via the many credit cards he had been given by various credit companies.

Johnny had all of these things in his favor:

–>  He was a crazy hard worker

–>  He had a great, ‘winning’ personality

–>  He had a deep seated determination to win

Jimmy was no slouch!  He worked hard to make his young business grow.  He was working every single day, including  weekends.

Jimmy went out of business after nine months of hard work.

Maybe he just didn’t have the right opportunity,  the right knowledge or maybe some key unknown peice of the puzzle was missing.

He was so disappointed.  He worked so hard.  Now he felt like a failure.

Since he used his personal credit cards and there was no money coming in from his now defunct business, Jimmy had no choice but to not pay off those credit card loans.  He defaulted on all of them.

He didn’t pay them.  He didn’t have the money.

The bill collection agencies were calling him left and right.

After a while, when they figured out that they were not going to get anywhere, most of them stopped calling.

But Jimmy told his story to one of them.  This bill collector hated her job and told Jimmy she was going to quit and go back to school.   Good for her!

She also told him something else that was important.  She said that after 7 years of bad credit, those debts would roll off his credit reports and he wouldn’t have to worry about it anymore.

It had already been 4 years, so Jimmy just had 3 more to go.

But Jimmy wanted to clear up his credit sooner, just in case a prospective employer might do a credit check!   So Jimmy went to a ‘credit repair company’.

They offered to charge Jimmy a hefty sum to clear up his credit report.  However, Jimmy liked to find things out. So he asked them how they planned to do that.

Jimmy found out that anyone can get their credit reports fixed.  It just takes time and persistence!

He learned that what he needed to do was to dispute each item on the credit report.  This initiates a procedure with the credit reporting agency.  They must go to the alleged creditor and ask for verification / explanation.

Sometimes they respond.  But if they do not respond within a certain amount of time, the reporting agency would have no choice but to remove the disputed item from his credit report.

If they do respond,  he would simply dispute the item again.   Sooner or later the creditor was going to drop the ball.  When they don’t respond, presto! The item is removed from the report.

– Dispute in writing

– Wait for a response or not.  If not, he wins.

– If there is a response, dispute it again.

Jimmy learned that this is how he could fix his credit report without spending a lot of money on a credit report repair service.

This is a fictional story.  Seek appropriate legal | professional advice if you have credit issues.

You may also enjoy:  Responsible Credit Card Use

and / or

Building | Rebuilding Credit with a Secured Credit Card

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