The 6 C’s Of Credit: Borrowers Enemies Or Allies?

WWII ALLIES, U.S. U.K. U.S.S.R.

In War,  no Victory can be attained without the support of Allies. In World War II, United States, Brittan and Russia were the Allies who aided one another in Battle against the tyranny of Hitlers’ Germany (and it’s Allies).

Your War On Debt is no different. Just like World War II, there are Enemies of Great Power on opposing sides. These conflicting sides battle to defeat the other.

In your War On Debt, nothing is more important than having solid  intelligence on potential Enemy Forces, Allies and knowing what forces remain neutral. This leads us to “The 6 C’s Of Credit”.

What Are The 6 C’s Of Credit?

The Six C’s of Credit are “Protocols” used to asses the risk of a Borrower to repay a loan or Extended Credit. The 6 C’s of Credit  are essentially neutral. But the 6 C’s  should not be overlooked, because they can provide you a Road-Map to Peace and Financial Liberty.

Above are the "6 C's Of Credit

Character: You know if you’re a good person who’s been caught in a Bad situation, or a Dead-Beat Bum, who had every intention to file Bankruptcy, to get out of paying their Debt. I don’t judge, but your Creditors,  Lenders and some Employers do.

Your Credit Report exposes YOUR Character. Your Credit Profile exposes much more.  But what does your Credit Report say about you? Is it  telling the [whole] truth? Is there false negative information being reported about you? Your Character as listed on your Credit Report is always a FORCE to be reckoned with.

Capacity to Pay: What is your Capacity to re-pay the loan? When any Loan is granted, there’s an automatic expectation of that loan being repaid, according to the terms of the agreement.

Capital: Capital is considered to be; Assets, equity, or  money. As a Borrower  and Debtor, some good questions to assess your Capital are:

• “Do I  have the money to repay this loan at the current terms”?
• “What will I do if they RAISE  my the Interest Rates above a certain percentage”?
• “What is my ‘Exit Strategy’ if the Lender changes the terms, or I loose my income”?

Collateral: Collateral is any item that used as leverage to secure a Loan. Collateral is where the “Battle-Lines” are drawn for the transaction(s). If the Borrower doesn’t repay the loan, the Lender can demand seizure [“Repossession”] of the collateral used by the Borrower – to secure the Loan, or Credit.

[TERMS] & Conditions: Conditions can be Debt Land-Mines waiting to be stepped on and activated. For example many Credit Card Agreements have Arbitrary but binding “Terms and Conditions”.  So It’s important to know the legally binding Terms and and it’s just as important to consider your Conditions.  It’s best to keep in mind all External Conditions as well (e.g. The Credit Freeze of 2008″).

Confidence: Coming full-circle, Confidence is reflected in your Character, Capacity to pay, amount of Capital and or Collateral. The Conditions are based on the Terms of the Loan Agreement as well as your own Financial Conditions.

I’m sure that you see that all Six C’s Of Credit are inter-connected. Each individual “C” provides a framework for Creditors and Borrowers. They are generally NEUTRAL FORCES that can work for or against you.

On the other hand DEBT WARRIORS seek to be YOUR  “Allies in your War On Debt”.

Why You Should Hate Fed Rate Cut

Federal Reserve Chairman, Ben Bernanke, cut the [PRIME] Interest Rate today, to 1%. The ironically the Scary thing (just in time for Halloween) is that the Fed lowered Lending Rates to their lowest since 1958. Even more spooky is that it happened on the 79th anniversary of the Great Depression.

We ALL should be OUTRAGED! Why? Because even though Interest Rates have dropped down to all-time lows, your Credit Card APR will probably stay the same, unless you take action and do something about it.

I discuss my OUTRAGE about this ‘Credit Card Mark-Up’ in more detail in this video.

In my recent blog post, The Great Credit Card Mark-up, I illustrated how Banks borrow money from the Federal Reserve, at really low rates, and then jack the rates up for loans to Consumers.

“With rates being tied at an all time low of 1%, there is little reason for anyone to have to suffer with high Credit Card Rates.”

You too should hate this recent rate cut! Your bank will not voluntarily follow Mr. Bernankes’ lead. They will not lower your rates without you gritting your teeth, calling them, and forcing them to. But you can do it. I’ll be happy to show you how.

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DEBT WARRIORS™ are not Attorneys. The information on this blog, should not be considered legal advice. If you need to speak with an Attorney click here:
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Why You Should Hate Fed Rate Cut

Federal Reserve Chairman, Ben Bernanke, cut the [PRIME] Interest Rate today, to 1%. The ironically the Scary thing (just in time for Halloween) is that the Fed lowered Lending Rates to their lowest since 1958. Even more spooky is that it happened on the 79th anniversary of the Great Depression.

We ALL should be OUTRAGED! Why? Because even though Interest Rates have dropped down to all-time lows, your Credit Card APR will probably stay the same, unless you take action and do something about it.

I discuss my OUTRAGE about this ‘Credit Card Mark-Up’ in more detail in this video.

In my recent blog post, The Great Credit Card Mark-up, I illustrated how Banks borrow money from the Federal Reserve, at really low rates, and then jack the rates up for loans to Consumers.

“With rates being tied at an all time low of 1%, there is little reason for anyone to have to suffer with high Credit Card Rates.”

You too should hate this recent rate cut! Your bank will not voluntarily follow Mr. Bernankes’ lead. They will not lower your rates without you gritting your teeth, calling them, and forcing them to. But you can do it. I’ll be happy to show you how.

——————————————————–

DEBT WARRIORS™ are not Attorneys. The information on this blog, should not be considered legal advice. If you need to speak with an Attorney click here:
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