Kevin Trudeau, author of Debt Cures says that everyone should do their best to improve their credit score. Because banks and other lenders charge higher interest rates to people with low credit scores, it can cost you thousands of dollars to receive the credit card offers. How can that be? Because each time a credit card company tries to “pre-screen” you for a new card it counts against you and your credit score goes down. Trudeau says this is another example of how lenders are ripping off the American consumer. They drive down your credit score so they can charge you more.

Fortunately there is a way to change this. Trudeau says you have the right to opt out of these mailings. Simply go to the website www.optoutprescreen.com. In a few minutes you will be able to complete an online form to stop the mailings. You have the option of opting out for 5 years, or for life if you choose to. You can also choose to opt back in at a later date if it becomes advantageous to do so. If you don’t have access to the internet you can also telephone 1-888-5OPTOUT.

Trudeau says you should not be pushed around by the credit card company giants. Take a step of action and help prefer your credit score. In addition to his book, Trudeau offers a newsletter with other helpful information to help you stay out of debt.

Debt Cures is an easy book to read. You don’t need a degree from Harvard in order to understand what Trudeau is writing. He does tend to repeat himself though. The 24 chapter book could have been considerably shorter, but in Trudeau’s defense many of his ideas are worth repeating. Some, however, could have been treated more thoroughly. For instance, Trudeau writes constantly about creating wealth and getting free money. He does provide some examples, but don’t purchase this book if your only goal is to get rich quickly.

The great value of the book is the tips that Trudeau provides for getting out of debt. There are no quick ways to get out of debt, but if you work hard at Trudeau’s techniques, in time, you should be able to get out of debt and, most importantly, stay out of debt. Trudeau arms you with information about the credit industry and about how the goals of credit card companies are to attract new customers who will be late on payments and who cannot pay back what they are charged each month. According to Trudeau, the plan of credit card companies is to hit you with fees and penalties, and then, as if they are not earning enough already, they want to get further into your wallet with high interest rates. They lure you in with low introductory rates, just waiting for you to be late with a payment so they can raise your rates to 20%, 24% and even 28%.

Trudeau is not opposed to credit. In fact, he is opposed to cutting up your credit cards if you are in debt. He believes you can use credit to your benefit. First, you need to know how the credit industry works so that you can use it for your advantage. Perhaps the best information from the book involves getting your credit report. Trudeau advocates getting your credit report and cleaning it up immediately. By law, you are entitled to a free copy of your credit report each year. Trudeau tells you how to get it and what to do to fix it. Often times your credit report contains wrong information which drives down your credit score. Trudeau tells how you can get this information corrected. Remember that your credit score is vitally important. It determines the interest rate that banks charge on loans. If you follow Trudeau’s advice, you will over time improve your credit score. Once it has improved, you can go to the bank to refinance your mortgage, which could result in saving hundreds a month on your mortgage payment. That’s money you can spend to pay down other debts, or money you can use to spend on the things you want.

In addition to improving your credit report, Trudeau advises that you develop financial statements on your financial health. Create a balance sheet and an income statement. The average American has credit card debts of $8000. Trudeau tells you how to use financial statements to negotiate with the credit card companies to reduce the amount you owe and to work out a realistic payment plan. He provides sample statements, so you don’t have to be an accountant to create them. All the steps Trudeau provides are things the average person can do themselves. While it would be good to have a professional review them, it is not necessary.

When we are in a great deal of debt, the fear of receiving collection calls can be crippling. We fear answering the phone or hearing the doorbell ring because of the pressure the collection agents use against us. Trudeau provides relief for that as well. He reviews the laws collection companies must follow. Not surprisingly, collection employees skirt around the law and sometimes break them. Trudeau provides plenty of information on how to fight back against collectors. For example, by law, collection companies are not allowed to telephone you if you tell them to only correspond through the mail. Plus they are not allowed to contact you at work. You will also learn about the statute of limitations for your debt. It is possible that you no longer owe any money on an old debt.

The book is full of contact information and places to turn to for help. Trudeau talks about agencies which help you pay your monthly mortgage, how to reduce your monthly bills, and information on consumer advocacy groups in each state. The federal government provides little protection for the consumer from the credit industry, but more than 30 states have brought lawsuits against credit card companies and banks. If you have been ripped off, Debt Cures may be able to help you find someone to fight on your behalf.

Throughout Debt Cures, Kevin Trudeau places the blame for America’s debt problems on creditors. The thirst for profits has turned creditors into predators. They lie in wait for Americans to lose their jobs, or to get sick and incur high medical bills. That way, they can hit them with high fees and high interest rates. It is not your fault if you owe thousands to your credit card companies. If you are charging your visits to McDonald’s it is not your fault if you can’t pay the bill at the end of the month according to Trudeau. He never suggests that we are in debt because of our spending habits. It is only the lust for higher profits that leads to our debt problems. Trudeau says not to worry, because if you follow his steps he can get you out of debt, and you can begin to use “good” credit to begin building wealth for yourself.

While he is not always clear on how you can make money, if you have patience and follow his steps then you can at least stay out of debt and that’s good for everyone.

Remember that the Debt Cures techniques are a two step process. You get out of bad debt first, after reading the book you now know how to beat the big banks and credit card companies. You know their system and you now know how to beat it. Once it is beaten, you are now ready for the second step of building your wealth.

You are out of debt and you are learning to stay out of debt. But that doesn’t mean you do not need credit. You still need it and in fact you will use good credit to build wealth. That’s why you need to stay on top of your credit at all times. Don’t just eliminate your debt, but continue to follow Trudeau’s steps. Keep your financial statements up to date, don’t close out you credit cards – keep them to show that you can pay creditors over a long period of time. Continue to pay on time and to pay your minimum payment or more. Good credit now can mean more good credit in the future, along with the benefits that good credit will bring.

You want to stay away from high interest rates and penalties but good credit will help you obtain the funds you need for the lifestyle you want to live. Trudeau gives more tips in Chapter 21 to improving your credit score, including getting a co-signer for a loan and piggybacking with someone else for credit. He provides greater detail in the book, but remember when you were a teenager and wanted a car? You might have had your parents co-sign the loan in order for you to get the car. If you have someone with good credit co-sign a loan for you, that will improve your credit score. With piggybacking, you have someone with good credit add you to their credit card. You don’t use the card but you benefit from their better credit score. Make sure you know the rules before doing so, and make sure you make any payments you are obligated to because you do not want to ruin any friendships. But you improve your credit score by working with others.

Also, consider an installment loan to help pay down bills. Go to your bank or credit union and get a small loan with a one or two year repayment period. Make all your payments, this will show up on your credit report as a positive and improve your score. A secured credit card is also a good idea, especially if you have children going to college. With a secured credit card, the user cannot spend over a set amount. It is another way to create a new good mark on your credit. Debt Cures encourages you to keep up the good work you have been doing and take the steps on the way to wealth.

Debt collectors have two ways that they make money, and both involve getting you to pay them. The first is when the card companies ask the collectors to get money from their customers on current debt, the debt collectors will then receive a large percentage of the money they bring in. Often, the card companies will sell their oldest debt to collectors, the collectors are paying pennies on the dollar and whatever money they get is nearly all profit. Under either system, the more money the collectors get, the greater their profit will be and the higher the commissions for the people doing the dirty work.

Many people have been put through trauma by debt collectors, but Trudeau says once you know your rights, you can fight back successfully. Of course the best defense is not falling behind, but that may be too late at this point, so Trudeau says he will equip you to fight back.

One of the few steps the federal government has taken to protect you (the consumer) is the Fair Debt Collection Practices Act initially passed in 1977. Trudeau goes through the rights granted to you in Debt Cures. A few that you might not be aware of include your right not to receive any collection calls after 8PM your time, that they cannot contact you at work without your permission, and that they are not allowed to talk to anyone but yourself. Check the book to get the details on these and other tips.

Collectors are trained to be aggressive and many are not afraid to lie or bend and break the rules. Trudeau says the first step you should take is to write down notes of any calls you receive or call backs that you make. Tell them to only communicate in writing and not call back. Make sure you keep your notes and copies of any communication you send to the collectors or anything you receive from them. Don’t fall for their intimidation tactics. Remember, you have power to act against them.

Remember the financial statements Trudeau talked about earlier in the book? Use them again if a collector calls you. If you are not able to pay, and the debt is valid (yes, collectors will try to collect debts you never had, or debts past the statute of limitations) you may need to negotiate with them. They will try to bully you, but don’t let them. You might be surprised at how quickly they back down if you act professionally and provide them with the facts. Respect yourself; you have a much greater value than people who make their livelihood off of others who are suffering. Debt Cures shows you how to arm yourself with information so you can escape the nightmare of collection calls.

Get Equifax Score Watch Now!

Get All 3 FICO Scores and Credit Reports from myFICO.com!

The difficulty is part of the plan. If we can’t read the contract, or give up halfway through, then they can legally charge us the high interest rates and fees that Trudeau calls obscene. Mortgage companies and car dealers must have easy to read contracts. When you purchase a car, you know up front the amount of each monthly payment, and the number of months it will take to pay off the loan. With credit cards, all you get is a monthly statement with a minimum amount. Kevin Trudeau quotes a professor who says that credit card companies should put a one line sentence on your monthly statement showing payment options. Imagine your reaction if you saw that if will take 60 months to pay off your $2,000 credit card debt. It may change the way we use credit cards, and may decrease the company’s profits. The credit card companies argue that it is too complicated to include on the statement, but Debt Cures says it is just information that they do not want you to have.

Credit cards are swiped 52 million times a day; so why do credit card companies need to charge such high fees? Each time you swipe, the companies are getting a portion of the sale. Trudeau says he doesn’t have a problem with credit card banks charging a reasonable interest rate, his complaint is their obscene profits from high rates and fees.

Kevin Trudeau says you need to be the ringmaster of this circus. He proposes several ways of being the human cannonball and fighting back. Some are reviews of techniques he explained in early chapters of Debt Cures while other tricks are new. Here are a few of these techniques:

1. You should be contacting the credit card companies anytime you have a question about your statement.
2. Call your company about reducing your interest rate.
3. Make sure you use your threat of transferring your balance to a competitor.

Remember, they would rather make some money off of you versus making nothing. Simply asking can reduce your monthly obligation considerably.

Make sure that you contact your company to have the annual fee removed. Most companies don’t charge it, but some do, why pay $30 or $40 a year plus interest when a phone call could remove it. Remember, whenever you call, if they don’t satisfy you the first time, ask for a supervisor or keep calling until they do what you want. When calling, ask for a higher credit limit, not for you to use but to help improve your credit score. Remember if you score goes up, you can use that as a tool to lower your payments. If it is your first late payment, call to see if they will remove the penalty. You have nothing to lose and may save money. Make sure you read chapter 17 of Debt Cures as Kevin Trudeau provides you with details on how to win when fighting back. Be the strongman or strongwoman in this circus. Be a success story.

Your credit score is calculated using an algorithm, a fancy word for complex mathematical formula. After all your information is thrown into a computer your score will come out between 300 and 850 points. In the past the banks wanted to lend only to people with high scores, because they represent the lowest risk. Now they want to lend to people with average or below average scores, because the profits are in the penalties, fees and additional interest they earn when you get behind in payments.

Remember your credit score is nothing personal. The credit reporting companies do not take into consideration your weight, race, religion or nationality. They don’t care if you root for the New York Yankees or the Pittsburgh Steelers. It’s a cold hard look at your financial numbers. They are looking at how your financial numbers are painting your life. Not only do creditors look at your credit score, but many employers will check your credit score as part of the hiring process.

With three credit reporting companies a good question is how will banks determine my score if all three scores are different? Trudeau explains that they will take the middle score. If you have scores of 680, 710, and 750, then your credit score will reflect the middle 710. It is not based on your average. Each company uses a slightly different formula to compile your score so it is not uncommon to have three different scores. Also, there is a difference between your credit score and your credit report. The score is simply your number, the report provides details such as how much you owe and who you owe it to.

In general, there are five areas that go into your score:

1. Payment history
2. Amounts you owe
3. Length of your credit history
4. Types of credit used
5. New credit.

Trudeau provides details on each of these areas along with their importance.

Banks will almost always use credit reports from all three companies while department stores may only use one. So it is important that you get and clean up all three credit reports. Remember the companies have to provide you with a free credit report annually thanks to the Fair Credit Reporting Act. It may also be advantageous to pay a small fee to get an updated credit report a few months after your review, to see if the corrections have been made and to see how much your score has improved. With an improved credit score, you can now save hundreds or thousands of dollars by improving the interest rate on current and future credit. You’ve started down the right path to curing the debt, now Kevin Trudeau wants to keep you moving down that path in future chapters of Debt Cures.

There are three companies in the United States that create credit reports, and each of the companies is required to provide you with a copy of the report at your request once a year. Don’t worry, Trudeau provides you with the contact information for each of the companies. So getting you report is easy. Once you get your report you will need to go over it thoroughly.

There are four main areas on your report: 1.) Personal Information, 2.) Credit Information, 3.) Public Record Information, and 4.) Inquiries.

Personal information is your name, date of birth, address etc. This is very important as it is not uncommon to find someone else’s information here. Imagine seeing that someone with the same name as yours in another city has bad credit, and it’s showing up on your report. This is a quick and easy fix.

Credit information is the good, the bad, and the ugly. This will show your loan and credit history. Make sure this is accurate, if you have paid off a loan, and the report shows it is still active, you will want to get this straightened out.

Public Record information could be a legal judgment or a tax lien. Again, you want to verify that the information is accurate.

The last section is inquiries. This is the part of the report that shows who is checking you out. Each time someone checks your credit history it will show up on this report. Every credit card that you have applied for will show up on this report, and each inquiry will bring down your credit score. That’s why you should not be applying for every credit card offer in the mail or at every store in your local mall.

Your credit score will fall between 300 and 850 reports. The higher the better, if you are average or slightly below average, then the credit card companies will come after you because you are likely to get behind slightly and they make money off of you.

Trudeau lists several ways to improve your credit. The most important thing involves contacting the credit reporting companies so that you can correct any inaccuracies. This can be done on the telephone, online or by snail mail. The dispute process is free, and must be completed by the companies within 30 days. If they cannot justify the dispute you win and it will be taken off of your report. Make sure you check each of the three reports carefully, as an error may only be on one of the reports. If it is on all three reports, then you will have to open three disputes. Again, Trudeau lays it all out clearly in Debt Cures.

As Kevin Trudeau maintains throughout Debt Cures, you need to take control and be in charge of your financial life and not allow the credit card companies to run your life.

To fight back Trudeau says you must take a good look at your current financial situation. If you were sick, then you would want your doctor to give a thorough examination before diagnosing the illness and before issuing orders for your recovery. The same with your financial health take a good look at how you got into the situation, but more importantly know your current finances to help you fight back. Trudeau wants to show you how to get out of bad debt and then use good debt to build wealth. No longer do you need to be bullied around, it is time to win.

The best place to start to determine your financial health is with your credit report and your credit score. The credit card companies and other lenders will always use these to determine the amount of credit they’ll give you and your interest rate. The higher the score, the better for you. Don’t go into bankruptcy when there are ways to get you out of debt without the sting of bankruptcy.

There are three lending companies in the United States who provide credit reports to lenders. They use a scoring system which grades you between 300 and 850 points. Unlike golf, you want as high of score as possible. The three companies will look at how deep in debt you are, how much available credit you have, whether you pay your bills on time and other detailed information about your finances. What they want to determine is will you repay this debt. It is strictly a numbers game; it doesn’t look at anything other than your current or past finances. While it is a good tool for lenders to have, the credit report can be a poor system for consumers.

While you would think that only a few people would get to look at your credit report, you might be surprised at who can view it. In addition to your bank or credit card company, your current employer or a prospective employer can review your credit report, as can your insurance company or your landlord. To no surprise, the government also has access to your credit report. The good news is you are also entitled to see your credit report. In the coming chapters of Debt Cures, Trudeau will go into detail on not only how to get your credit report, but also how to read the report, and how to improve your score. This will help you create wealth for yourself and to win the fight against high debt and the lenders.

The average American is $8,000 in debt these days and Trudeau says it’s not trips to Rodeo Drive that is driving up debt; rather it is visits to the grocery store, gas stations and the doctor’s office. Trudeau is shifting blame for America’s debt from consumers to the lenders, asserting that Americans would pay their credit card bills on time consistently if not for life’s crises. A job loss, a divorce, or a medical illness. These are the causes that drive America further into debt according to Trudeau, not a lack of fiscal responsibility by consumers. And the greedy credit card companies wait for Americans to have a personal crisis and, instead of greeting them with compassion and help, instead greet them with late fees, penalties and higher interest rates.

The drive to pump up American’s debt and, consequently to increase the profits of the credit card companies, has lead to increased the opportunities for Americans to use their plastic. McDonalds now allows you to charge your Big Mac and fries. Trudeau alleges that this is not for your convenience, nor is it for the transaction fees they charge McDonalds. No, you can now use your credit card at the drive thru so that you will be late on your next payment, max out your card and be stuck paying fees and profits to the card companies. One would think that the federal government would step in, but Trudeau maintains that the government is in partnership with the card companies. He does not, however, show us a link between the credit companies and the government other than political contributions. Trudeau concedes the fees are legal, but states that they are unfair because they frequently change without notice and that when notice is provided, it takes a lawyer and a magnifying glass to read the fine print. Miss a payment and watch your interest rates go up, terms changing in midstream costing you thousands of dollars over the life of the credit card and nothing but pure profit for the bankers. Trudeau wonders if you know your credit score, because if you don’t the lenders certainly do. And if they notice a change in your credit rating, up goes your interest rate, keeping you further trapped in debt. Pay a late fee to Company A, and see Company B jack up your rate.

Fortunately, Kevin seems to know the credit card industry very well. By helping his readers to better understand the objectives and incentives of the industry, he is hoping that they too will be able to overcome the system. I assume that this information will be valuable in future chapters we Trudeau begins to explain the Debt Cures approach and how it can solve our credit problems. The book remains interesting in style and in content and I look forward to seeing how I can get out of the credit card mess.