Consumer Law

Debt Cures: Does Kevin Trudeau Make Money or Sense? Part 16: Rebuilding Credit

By Karen Oakes, Southern Oregon Consumer Attorney

Part 16 of my review of Kevin Trudeau?s book, ?Debt Cures ?They? Don?t Want You to Know? examines Chapter 22:  Rebuilding Credit. The purpose of the review is to examine whether Trudeau,  who has had extensive involvement with credit card fraud and the Federal Trade Commission for some of his previous books, makes any sense in this latest self-help promotion or is he making money selling empty promises?

Mr. Trudeau starts Chapter 22 with a “you’re on the home stretch” chat with the reader.   Trudeau states that he has provided many techniques to the read to get out of debt and that the reader now needs to believe that there is some “good” debt and leave the “bad” debt behind.  He congratulates the reader on the self-education attained through reading and applying the principles in Debt Cures and that now the reader is ready to rebuild credit.

One of the suggestions for improving your credit that Trudeau makes is use a new version of the “piggy-back” (to have a friend/family member add  your name to their account and then your credit improves because of their good standing)–to have a friend/family member co-sign a credit application  for  you.   This can be a good thing if both sides trust each other completely.  Both parties are equally liable for the credit transaction.  Both parties can charge on the account.   Trudeau stresses that the reader “be smart.” I would advise that the reader be “smart” and “safe”.   Only try this technique with someone whose debt you are willing to pay if they don’t pay the debt (more often than not, I have consultations with consumers who are now trying to pay the ex’s debts and can’t believe that the “ex” who loved them sooooo much, would ever do this to them).

Another suggestion made by Trudeau is to apply for a secured credit card (where a deposit of money is made into a savings account at the bank; charges can be made on the credit card up to 100% of the deposited savings, or some other multiplier of the savings account).    This is actually a good technique and doesn’t involve a co-signer.

Trudeau also suggests getting a small installment loan and paying it off in regular payments.   Also a good technique.

Trudeau ends the chapter by advising the reader is headed for wealth.

Overall review:  again a 50/50 mix of good/bad suggestions.   Co-signing is risky; the tips on rebuilding credit are good.

• Part 1 of my review examines the first three chapters of Kevin Trudeau?s book, ?Debt Cures ?They? Don?t Want You to Know. (gets an ?okay? rating)
• Part 2 of my review dissects Chapter 4 of the book (gets a warning of ?Get legal advice from a lawyer in your own state?).
• Part 3 of my review deals with Chapter 5 of the book (gets a warning of ?Get legal advice before following Trudeau?s advice?)
• Part 4 of my review examines Chapter 6 over at our sister site, Credit Law Network, as Trudeau discusses how to ?cut? your credit card rate.  (gets a ?doesn?t hurt to try it; don?t expect it?).
• Part 5 of my review examines Chapter 7:  Fighting Back. (gets an okay rating).
• Part 6 of my review examines Chapters 8-11:  Credit Score (gets “good information”)
• Part 7 of my review discusses Chapter 12:  Credit Reporting Errors (gets mixed review as he repeats bad information (discussed earlier in Part 3) but generally good information).
• Part 8 of my review examines Chapter 13:  Student Loans (gets generally good review)
• Part 9 of my review discusses Chapter 14:  Home is Where The Start Is (gets nearly failing grade)
• Part 10 of my review examines Chapter 15:   No Bankruptcy (gets failing grade/adds shame)
• Part 11 of my review examines Chapter 16:  Big Business (credit card industry)(gets A grade for giving information)
• Part 12 of my review discusses the information presented in Chapter 17:  Stealing Candy from Babies (gets okay rating for giving information)
• Part 13 of my review examines Chapter 18:  Three Ring Circus (gets failing grade for repeating information already provided)
• Part 14 of my review examines Chapter 19:  Slaying the Dragon (gets A grade for giving the math on how long it takes to pay off a 20% credit card with a balance of $8000 with just minimum payments….FIFTEEN YEARS!!!
• Part 15 of my review examines chapter 20:  Stopping Debt Collectors Cold (gets a failing grade for some good information and then followed by really bad advice:  scary!)
• Part 15B of my review goes into more detail about what was scary about Chapter 20.

Full post as published by Credit Law Network on May 01, 2009 (boomark / email).