Six Choices to Alleviate Your ‘Unpayable’ Debt

Six Choices to Alleviate Your ‘Unpayable’ Debt

August 8, 2023

Advice about trying not to care what others think about you ranges from inane to utterly insane.

A good relationship with money is an essential function of life. Years of research with thousands of adults show that finances -surplus or deficit- impact your mental and physical health. How individuals manage money is based on what they know and how they behave with money.
For working Americans, 33% are within three missed paychecks of borrowing money or skipping bills.² One-third of our income goes to paying debt (not including mortgages or living expenses), and 30% of U.S. adults always pay -or often pay- the minimum on their credit card bills.¹
Nine percent of us don’t even know what we are paying in interest,¹ and sixty-nine percent of us say personal debt and credit card debt prevent us from saving for future goals.¹ Seventy-one percent of Americans say their financial literacy and planning skills need improvement.¹ Out of 5000 Americans surveyed, 69% failed a three-question financial literacy test.⁷
Managing or avoiding debt starts with financial literacy. To better understand how to eliminate debt, increase cash flow and accumulate wealth is of paramount importance. Let’s begin with understanding bank and credit systems and the basic rules of debt programs.
Banking and credit systems in America (and worldwide) are massive in size and scale. Be crystal clear; the banking and credit industry is counting on your ignorance and your ‘inattention’ to the debt obligations you agree to pay. When you owe money -large or small amounts- the credit and banking industry is designed to keep you in debt. The industry loves loaning you money.
As long as you can make the payments, they will be happy to keep giving you lines of credit. With debt, the borrower usually has a disadvantage, especially when something goes wrong and the debt cannot be repaid as required. There are multiple paths a consumer has to help alleviate excessive or “unpayable” debt due to unforeseen hardship. What are your options nationally?
Five options you can use to help minimize or eliminate debt and improve or renew credit scores:
  • File Bankruptcy
  • Seek Debt Consolidation Loans or Refinance your Mortgage (if you own a home)
  • Enroll in a Validation Program
  • Enroll in an Assumption Program
  • Enroll in a Settlement Program
  • Learn, Understand, & Manage, the ups & downs a credit reports and there scoring system.
These options have positive and negative effects. However, each program’s details are secondary to the “Rules” that apply to all the available options. Before engaging in any program, understand the foundational rules:
  • Each program is precisely unique. None of these options work the same way or do the same thing. What they all have in common; they require you to educate yourself. It’s up to you to determine which is the best path based on your circumstances.
  • Debt programs all have one thing in common; the average time to complete the program is three years. The process takes time. Expect that you will not see monthly results. Stay patient, don’t worry or panic because you do not see results in the first six months. It is, on average, a three-year process for each program method.
  • Do not fall into the perception that your credit scores won’t be affected when using a debt relief program. No one in a debt program can magically keep an excellent credit score. What do you want? Debt relief and freedom from the debt or an excellent credit score? Credit scores are fluid and change monthly; what goes up can go down. The priority in a debt program should not be how your credit score is affected. Don’t obsess over credit scores; focus on the goal of living debt-free. Once that is completed, your credit scores can be corrected & renewed.
Once you understand the basic rules of the multiple debt-relief options, the next step is to understand how the laws and the programs work. Let’s take a look at each program individually.
Bankruptcy – Chapter 13
Chapter 13 is where you own assets or earn a significant income that would allow you to repay the debt. Chapter 13 allows the courts to come into your personal or business finances and take control. Their assignment is to evaluate and execute a set plan to repay the debts. These programs, for the most part, are five years

THE DAMAGE: You frequently have a trustee assigned to you by the court to monitor and control your finances. Depending on where you live and the court’s process/policy, they can take over your finances to pay off the debt while giving you a weekly or monthly allowance. You cannot obtain home loans, business loans, or other forms of credit during this time. In most cases, for up to 4 to 5 years. The damage on the credit report is held for seven years.

Bankruptcy – Chapter 7

Chapter 7 is where your income is so low that you qualify for all debt to be forgiven by court order. All creditors and lenders are ordered to remove the debt obligation entirely with no rights to collect the debt now or into the future.

THE DAMAGE: Your credit history shows Bankruptcy for ten years, affecting your rates, your access to some types of credit, and in some cases, your ability to obtain a professional career/job. In specific career fields, credit is used to evaluate your level of financial responsibility. If you have a bankruptcy on your record, you are not eligible for hire.

Keep in mind that tax debt, education loans, and government-type debt responsibility are usually not part of a Bankruptcy. If the debt is ignored, things only worsen – garnishment, liens, and even jail sentences- when dealing with government obligations. Do not ignore and avoid debt. It will only compound the problem.

The reason consumers chose other methods of debt relief instead of Bankruptcy is to prevent the long-term damage Bankruptcy can cause. With programs like debt validation, assumption, or settlement, your debt and debt payments can often be cut in half and fully paid off in 3 years or less. Consider all your options before turning to Bankruptcy

Loan Consolidation
Using Loan Money To Pay Off Loaned Money?

Loan Consolidation has become the bread and butter means of “paying off” debt for millions of Americans. In early 2000, homeowners started to use home equity loans and mortgage refinances as a standard tool to grab cash out of their homes.
Eventually, home loans turned into a frenzied means to buy more stuff. It also became the start of a long -and ultimately painful- habit of American’s using a cash-out mortgage to fund unsecured and secured debts. After eight solid years of mortgaging homes to pull cash, the music stopped. From 2008 to 2012, five trillion dollars in pension money, real-estate value, 401k, savings, and bonds had disappeared. Eight million people lost their jobs, six million lost their homes. During all this time, did anyone stop to recognize the pattern of using loan money to pay off loaned money?
Enter 2021, with 1.7 trillion dollars of student loan debt,⁹ 911 billion dollars in credit card debt,¹⁰ and a very unsettling 14 trillion dollars in consumer debt.¹¹ In 2019, 49% of homeowners increased their mortgage debt to the tune of 137.5 billion dollars in cash-out refinances.¹³ In the first three quarters of 2020, cash-out refinances increased to $153.8 billion.¹³ That’s an 11% increase in cash-out refinancing for 63% of homeowners with mortgages (2019 to third-quarter 2020).¹³

Even though America’s debt levels are at an all-time high, over the last year (2020), the credit card debt levels have dropped while mortgage cash-outs have increased. Indicating Americans have used 89+ billion cash out funding to “pay off” unsecured Debt and other secured Debt. All in an effort to reduce their monthly payment expenses. For many people who owe a debt, the first inclination is to reduce the monthly payment. With a consolidation loan, all debts are collected into a new loan, new interest rate, and new term. Consolidation may lower the monthly payment, but the term and interest rate are extended and started over again.

When a homeowner consolidates multiple debts into a new mortgage loan, the current rates may be low, but the term is 15 or, most commonly, 30 years. If the debt term before a refinance was five years, that same debt is now extended for three decades. Is this process the best path to eliminate debt? This method does not eliminate the debt at all. It’s only moved from one loan to another with an extended-term.

Other solutions to paying off debt create an immediate increase in monthly cash flow and frequently reduce the debt by 50% or more. There are times that consolidation loans are appropriate, but it is best to explore all your options before moving money from one loan into another loan. Many Americans live under the illusion that a refinance or consolidation loan is paying off debt. The fact is, it’s just not true. Making better use of your income and your cash flow through debt elimination or reduction should be the goal.

“The only one who sticks closer to you during adversity than a friend, is a creditor.”

Here are some facts; owing creditor debt prevents you from keeping your own money to accumulate wealth. Most Americans choose debt accumulation over wealth accumulation. The proof in this statement comes from the last 30 years of economic history. Consider how the Great Recession and Covid have affected tens of millions of Americans with their individual short and long-term financial position.
Eliminating Unsecured Debt in Half, Overnight
More frequently now than in our country’s history, most Americans don’t have enough cash flow to fund living expenses. How do you save money and pay for childcare, education, medical, and other living expenses? Preparing for a successful retirement is yet another priority. These factors -and many more- can slow or prevent wealth accumulation, especially if you’re in debt. The importance of reducing or eliminating debt from your finances should be a top priority. The faster you can eliminate debt, the more time and cash flow you have to accumulate wealth.

Short-Term Debt Reduction or Elimination Options: V.A.S.T.


The words “Debt Validation” can be somewhat misleading. Debt Validation holds the creditor or collection agency accountable to lending, credit, and collection law. The creditors & collection agencies must follow the law and prove the debt is valid, and the required legal processes of collecting the debt have been followed.
Most debt sold from the original creditor to a collection agency does not follow the letter of the law. When violations of due process occur, the client debt cannot be collected, and the debt is invalidated. Weightless works with an experienced team of experts and attorneys who can assist your clients through the process of validation, ensuring clients’ rights are not violated or abused. Validation brings creditor account disputes into play starting from day one. For clients on tight budgets or dealing with hardship, validation can be an inexpensive program to help remove debt over a 1-to-4 year term.


This program is a proprietary system that is practiced through an exclusive process. With assumption, the company takes legal assignment of the debts with the client. By assigning the debts over to the program, they have a vested interest in eliminating the client’s debt. With most credit agreements, there is a clause in the terms and conditions that state the rules can be changed at any time. This program uses the same contract law principles, changing the creditor’s contract, resulting in a favorable change for the client.

Once the terms have changed and the creditors continue to do business as usual, the assumption process fines and penalizes the creditor’s for violating the new contract. Over some time, the fines and penalties accrue, offsetting the original debt owed. Within 12-36 months, the client’s debts are offset, and the client is ready for their next step towards wealth accumulation.


Debt Settlement is a negotiated agreement by which a creditor accepts less than the total amount owed to satisfy a debt. Settlement programs typically last 12-48 months and are dependent on factors such as time of delinquency, creditor rules, number of accounts, and total enrolled amount.

Settlements are traditionally negotiated in either lump sums or set monthly payments depending on the availability of funds. Settlement programs are designed for individuals facing financial hardships such as job loss, the loss of a caregiver, permanent disability, crippling medical bills, or another situation that renders them unable to continue regular payments to their creditors.

What’s the Big Deal about Paying Off Debt?

The common idea that a high income is the only key to financial success can be overstated. Consider that 53.8% of Americans earn less than $75,000 annually,² and on the opposite end of the income spectrum, 17% of Americans live in poverty, below $25,000 annually.³ The year 2007 marked the onset of the Great Recession, and it took until 2015 for incomes to approach their pre-recession level. Indeed, the median household income in 2015 – $70,200 – was no higher than its level in 2000, marking 15 years of stagnation, an episode of unprecedented duration in the past fifty years. The point being -significant negative economic changes can affect income and savings for decades. Debt obligations magnify the problem. Debt owed consumes American
income. By being free of debts, your income has the ability to grow more income
-increasing your wealth- without having to work two or more jobs to make ends meet.

Debt costs money and time. The more debt you have, the greater length of time it will consume to eliminate that debt. What are the top barriers that stop Americans from having a successful financial future? For the thousands of Americans surveyed, the focus of a successful retirement comes down to debt versus income. Nearly half (46.40%) of those surveyed say they don’t earn enough income to save for retirement.⁶ But how accurate is that perspective? Among U.S. adults carrying debt, 58% say debt has a moderate to substantial impact on their ability to achieve long-term financial security.¹ The question that needs to be asked; how much impact does debt have on your income and finances?

Debt of any kind restricts your ability to use your income efficiently. In 2020, the national average of unsecured household debt was $26,621.¹ For the last 16 months, our clients at Weightless have carried an average unsecured debt amount of $38,000. Most unsecured debt payments are based on a 3% minimum payment. In this example, at the average 17% interest and a minimum payment of $1,220, you will pay $34,670 in interest over the average payoff term of 18.8 years.
  • What happens if we cut that debt payment of $1,220 in half – to $610 per month and begin earning interest instead of paying interest?
  • What happens if you can reduce your debt in half and pay it off in three years? How much money could you accumulate if you’re not paying the debt for 18.8 years?
  • What happens if you can take the total $1,220 you spend on debt after three years and save it for 18.8 years at 6% interest?

“The question that needs to be asked: How much impact does debt have on your income and finances?”

By making some simple changes to the way you spend your income, instead of paying $34,670 in interest to creditors, you can pay yourself $39,558.35 over that same period of time. Debt consumes your income’s cash flow. If you are servicing debt payments, you are not paying yourself, and your ability to accumulate wealth is minimized.

  • Saving $610 per month for three years, compounding annually at 6% interest, is $2,785.04 earned.
  • Add $1,220 per month to the $2,785.04 for 15.8 years, compounding annually at 6% interest.
  • Your total accumulated wealth is $39,558.35 over a total of 18.8 years.

Retiring at 65 to 67 years of age -living on a conservative $40,000 annual income- you could burn through $1,000,000 before the end of life. In 2021, it is more realistic to focus on saving two million for the lucrative lifestyle that most hope for. What does it take to achieve a $2-million goal? Using a 6% average annual return and a retirement age of 67, a 20-year-old would need to save $639 a month for 47 years. If you wait until your 30 years old, that amount increases to $1,226 a month to reach the goal.⁵

The truth is, planning for financial success can seem overwhelming. Keep in mind that everyone breathes one breath at a time. The same applies to finances; take steps one-at-a-time. Focus on the three basics:

  • Eliminate debt :
As much as you can- as fast as you can. Removing the debt automatically increases your cash flow. So many people focus on increasing their income first to pay their debts. This is the opposite of getting out of debt as quickly as possible. Increasing annual income takes time, and all that time means you’re paying interest on the debts.
  • Increased Cash Flow :
Having more money at the end of the month opens many positive financial doors. A simple savings of $500 a month can be life-changing for the short and long term. Which is better, paying creditors $500 of your money plus interest or paying yourself? The adage that ‘Cash is King’ still rings true. Cash flow is the beginning, middle, and end of wealth accumulation.
  • Accumulate wealth:
Once the debt is gone and the cash flows, opportunities start showing up on the horizon. When you have more money than debt, a whole new world becomes available!

Credit Scores: The Elephant in the Room

What’s the big deal about having a high credit score?

For decades Americans have been taught and marketed that an excellent credit score is a top priority in life. Millions of people believe the perception that if you don’t have a score of at least 720 points, you should be embarrassed or even ashamed of a lower score. On the other hand, if you have a 720 or higher score, you now have bragging rights to show a perceived financial status. How did we come to put so much emphasis on associating a person’s financial status with a high credit score?

Today, good credit has become an obsession for people. The average American carries an unsecured debt load of $38,000. The average interest rate on credit cards is 19%, and credit card balances exceeded 1.1 TRILLION dollars in 2019.¹⁴ Did you know consumer debt owed in America stands at 14 TRILLION and school loan debt is at a staggering 1.54 TRILLION dollars?⁹ If we have so much consumer debt as a country, why are we still so convinced the most important part of our financial status is a high credit score?

Consider Mark, a husband and father of two young children. Mark has accumulated $24,200 in unsecured credit card debt with a monthly debt servicing payment of $726 a month. His average interest rate on the debt is 15.09%, and it will take him 22 years to pay off the debt at the cost of $17,255.31 of interest. Mark’s credit score is 705 and has dropped 15 points because of the debt balances Mark carries. He is concerned about his score going below 720 -fearful he won’t qualify for loans or possibly new job opportunities if his scores drop.

What if there is a better way to eliminating Mark’s debt, increasing his cash flow, and accumulate wealth? Instead of $24,200 of debt, a debt program will adjust his debt to $10,890, and his new monthly payment will be $363. Mark will save $363 a month and eliminate over $17,000 in interest paid.

Instead of using this program option, Mark decides to prioritize a higher credit score over the debt program’s savings. What is the real cost of making such a decision? Choosing a higher credit score over reducing his debt is expensive. Not only is Mark obligated to the $24,200 plus the interests over 22 years, but his credit scores can still drop below 700 because of the length of time he will be carrying that debt.

Using a legitimate debt relief program goes beyond the money saved on interest payments. By saving $363 over two years, Mark could potentially accumulate $8,712 in liquid cash. Having accumulated cash, Mark minimizes the need to use his “good credit” and avoids accumulating more debt. Would Mark see a drop in his credit score using a debt relief program? Yes, as much as 100 points or more. But if the debt relief program follows up with renewing his credit after the debt is gone, which is the better option?

What’s more important?
  • Keeping your good credit score so you can increase your debt and pay more interest?
  • Let your credit score drop for a short time, eliminate $28,765.31 in debt expense, and accumulate at least $8,712 in cash?
Credit scores come and go; you can always renew your credit. Why continue to struggle with your debts to have a good reputation with credit bureaus, credit cards, and lenders who don’t even know your name?

From our C.E.O., Bruce Kennedy

Hello! Welcome to Weightless Financial. Thank you for taking the time to educate yourself with the many types of debt relief programs available to you. Keep in mind, debt relief and freeing up your hard-earned income is only the beginning with Weightless.

Our goal is to grow the financial literacy of people across the country. If you don’t understand or know what options you have, how will you make sound decisions? Weightless has more than the ability to help you find suitable debt relief options. Our company has experts and professionals to help you with financial products that can help you accumulate wealth. We work with top-rated insurance companies, offer financial coaching programs -designed to help you reach your dreams- and even move you in the right direction if you need help becoming an entrepreneur!

Please, don’t hesitate or even procrastinate getting started with us. Reach out to the agent that sent you this document and start your journey to learn more about our tools designed to help you eliminate debt, increase cash flow, and accumulate wealth.

To your success!

Bruce Kennedy.


⁷ ©2020 How Money Works, LLC

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