One of the best strategies to improve cashflow and build investments is helping your client to reduce debt. Properly structured debt workout programs can help your clients to be debt free in 30 months or less.

1. ADVISORS GUIDE TO
CONSUMER DEBT
“Debt is an ingenious substitute for the chain and
whip of the slave driver” Ambrose Bierce
We will start promptly 11 AM CST

2. All About the Connection
Todd Strobel
• Student of Human Behavior
• Better to make Dollars Than Sense
• Licensed Financial Advisor

3. Disclaimer
• I am not an attorney and am not attempting to give legal
advice. I am sharing relevant information gained by an
intensive journey into the world of debt, credit and the
human perspective. It is my hope you will gain a better
understanding of the choices and options available to
your clients. Please seek legal advice and carefully
consider your options before making legal decisions.

4. Why is Debt Important?
• Our Clients
• Income Increased or Decreased?
• Cost of Living Up or Down?
• Chances of Inflation?
• Tax Environment Rising or Falling?
• Easier or Harder to Find Dollars?
• Anticipated Rates of Return Higher or Lower?
• Debt is a Major Concern to Over Half of Americans
• The Money Being Allocated to Debt is Only Chance Many
Clients have!
• Can Free Up Over $800 Average Monthly for Wealth
Building

5. What Does the Media Say
• Suffer and Payoff Debt at All Costs
• Dave Ramsey Plan
• No Lifestyle, No Protection, No Future
• Damages Self Esteem by Promoting Poverty
• File Bankruptcy
• Easy Way Out – Not Really
• Painless
• No Education and Cycle Repeats
• Pay Your Bills at All Costs
• Promoted by Credit Industry
• Fear of Not Paying (Can I Go to Jail?)

6. The Credit Trap
• Zero or Low Rate Offers
• Initially Balances Paid off regularly
• Start carrying a balance
• Emergency purchase’
• Luxury purchase
• Rates increase
• Introductory rate ends
• 1 day late can cause penalty rate increases

7. The Credit Trap(cont.)
• Use Home Equity to Payoff Debt
• Flood of Credit Card Offers in Mail
• Same Cycle Again
• Balances Continue to Climb
• This Time No Equity to Payoff Debt
• Change in income/layoff/ emergency expense
• Possibly worse if adjustable mortgage may increase
payments

8. DEBT
• Highest Cost is Physical & Mental Health
• Fear, Doubt & Worry
• Greatest Fear is of Unknown
• Bad Situation Not Bad People
• Creditors Have Professional Help
• So Should You
• Opportunity Costs
• Only You Can Help With This
• Be Grateful for the Lesson

9. Credit Card Companies
• Great Intro Rates that expire
• Higher rates on cash advances
• Default rates/fees if you
• Are even 1 day late
• Exceed your credit limit
• Write an NSF Check
• Are reasonably assumed to not pay!
Can modify rates/terms at any
time
• Includes lowering or closing available
credit

10. Credit Card Example
• $5000 Balance @ 21% Rate with $100 Minimum Monthly
Payment
You have entered a balance of $5,000 at 21.00%. We estimate that:
$100 Estimated initial minimum
payment
64 years Amount of time to pay off
your balance, if you make
no more charges and
make only the minimum
payment on time each
month
$29,398 Interest charges you will
pay in that amount of time

11. 3 Types of People in Debt
• Those who modify lifestyle, sell off assets and get out of
debt is 3 years or less.
• Those who are way behind and no way to pay so they will
default/bankrupt or settle
• Those who can afford minimum payments but have no
way to pay off debt
• Worst possible situation
• Can pay for 25+ years
• At the cost of their lives

12. Need a Reason to Get Angry?
• 2006 Urban Justice Center Study Found
• That 99% of the default judgments they reviewed did
not meet the legal standards regarding evidence to
obtain a judgment.
• These could have been defeated IF a knowledgeable
debtor would have just shown up to court.
• Collectors Routinely Violate
• Collection laws
• Borrowers rights

13. STAYING
• Obligation
• I owe!
• Pride
• What will our friends say?
• Not a deadbeat!
• Fear
• What will happen to me if I do not pay
• Blame
• Not my Fault

14. Getting Unstuck
• Decide – time for action
• Declare – commit to change
• Detail - starting point. Where am I
• Discover – options
• Determine – Best Course of
action
• Deploy – Move powerfully forward
• Discipline – Keep up. Support
system

15. Advisor Must Help Client to:
• Realistically Evaluate
• Income-Current & Future
• Debt-Have Now & Anticipated
• Assets-Now & Needed
• Risk-Seen & Unseen
• House vs. Home
• 2012 is Last Year for Short Sale Tax break
• Commit to Getting Out of Consumer Debt
• Stop Credit Crutch
• Paid Off 30 Months or Less
• Fully Understand Opportunity Costs

16. Scary New Fact
• Outstanding student loan balance has surpassed the
nation's $693 billion credit card balance, according to the
report. According to recent data, nearly 80 percent of
Americans held credit cards as of 2008, compared to 15
percent of consumers who now hold student debt,
according to the Fed report. That contrast illustrates just
how small of a pool of Americans holds this large chunk of
debt.

17. Greatest Gift Advisors Provide:
• Our Clients is The Ability to
Experience the Future Pain of
Current Decisions

18. Consumer Options
1. Pay Minimums Hope for Future Windfall
• Opportunity cost of college/retirement etc.
2. Stop Paying Do Nothing
• Ruin credit, risk lawsuit
3. Sell, Liquidate or Borrow Money to Payoff Debt
• Opportunity Cost
4. CCCS
• Sponsored by credit card industry
• 79% default rate
5. File Bankruptcy
• Chapter 13 (3-5 year payback) 69 % default rate
• Chapter 7 – Now income restricted
6. Debt Settlement
• Bad Reputation-Wild West-No Regulation
• FTC Forced Shutdown of 95% of These Companies

19. Fiscal Fitness Program™
• Based On Corporate Restructuring Platform
• Best Aspects of Debt Resolution, Financial
Counseling, Education and Coaching,
• Prioritize and Pay Debt as Makes Most Sense
• Overall Health & Wellness of Debtor is Key
• Intensive Education Program
• Client Understands Belief Patterns
• Client Understands Marketing Pressure
• Client Learns to Prioritize and Save
• Registered Investment Advisory Firm
• Monitored by SEC/FTC
• Investment Advisory Rep Paid to Educate/Advise Monthly
• Encourages Open Communication with Creditors

20. Fiscal Fitness Program™
• 90% + Success Rate
• Tight Screening With Free Upfront Counseling
• Budget That Works Including Creating Safety Funds
• Deal With Psychology, Education and Creating Good Habits
• Restores Self Esteem
• Now Approved Relationship with MC/Visa
• Open to Extending New Credit to Participants
• Income Source for Advisors
• Paid to Refer Clients
• Paid to be a Trained Advisor
• Keep 100% of Commissions
• Recently Approved to Help with Student Loans

21. Creditor Options
• Hold Debt and Continue to Collect
• Subject to Statute of Limitations
• Sell to Collection Agency or Junk Debt Buyer
• sometimes as much as 98% discount
• File Lawsuit to Recover
• Many Debts Not Legal In Courts
• Many Borrowers Not Collectible
• Settle Debt for Less Than Full Amount
• This is most profitable of the 4

22. How Can We Support You?
• Developing a Full Line of Consumer Education Products
• Self Study Products for DIY Market
• You Can Sell to Your Clients with Profit Sharing
• Sponsor a Webinar – We do ALL the Work
• Work With Local Companies/Non-Profits
• No Cost Comprehensive Analysis for Your Clients
• They Get In Depth Help and Recommendations
• Paid Referral Program for Clients Accepted Into Program
• You Function as Advisor for Product Sales
• Become a Trained Advisor for Fiscal Fitness
• We Provide Clients
• You are Paid Monthly to Educate Client
• You Keep 100% of Commissions
• Participate in Free Weekly Advisor Trainings
• We Will Continue to Provide In Depth Education for You

23. Time for Some Action?
• Click Here to Request a Personal Follow Up
• My Email Address is: tstrobel65@gmail.com
• New Guide to Financial Peace Radio Show!
• Want to be interviewed?
• Complete Interview request
• As Promised Get Consumer Debt Webinar
• Request Your No Cost Consumer Debt Workshop