Summary of New Trump Massive Credit Score Change Starting Tomorrow | That Will affect YOU
Summary of Video: "New Trump Massive Credit Score Change Starting Tomorrow | That Will affect YOU"
Main Financial Strategies, Market Analyses, and Business Trends Presented:
- Credit Reporting Changes on Medical Debt:
- The Consumer Financial Protection Bureau (CFPB) under the Trump administration is rolling back a Biden-era rule that prohibited medical debts from appearing on credit reports.
- Starting June 15th, medical debts can again be reported on credit reports, potentially lowering many Americans' credit scores by around 50 points.
- Medical debt collectors may begin aggressively reporting debts; consumers have 30 days to send debt validation letters to challenge these debts.
- Debt validation letters should be sent certified mail, requesting proof that the collector has legal right to collect the debt.
- Do not talk or verify information on phone calls with collectors to avoid verbal contracts or inadvertent validation.
- Use HIPAA privacy laws to challenge medical debt reporting, as collectors are not supposed to disclose specific medical information.
- If collectors respond with medical bills, send a follow-up letter accusing them of violating HIPAA, which often leads to debt removal from credit reports.
- Student Loan Debt and Financial Prioritization:
- Student loans are difficult to discharge in bankruptcy and require long-term payment plans.
- It's advised to prioritize student loans differently from medical or consumer collections, which can be challenged.
- The financial burden is compounded by inflation and garnishments.
- Budgeting alone is insufficient; additional income streams are necessary to manage debts.
- Credit Repair and Business Credit Building:
- The "Elite Credit System" automates credit dispute letter generation and provides coaching to improve credit scores.
- Business credit requires strategic setup:
- Choose low-risk industry codes for LLCs to maximize credit score potential.
- Avoid industry-specific names that may limit lending options.
- Use payroll services like ADP to establish W-2 income for self-employed individuals, aiding loan qualification.
- Business credit is distinct from personal credit and requires proper categorization and management.
- Investment and Income Diversification Trends:
- Real estate investing (including crowdfunding platforms like Fundrise) is encouraged as a means to build passive income.
- Alternative investments such as AI-powered smart vending machines offer new passive income opportunities.
- The tiny home movement and raw land ownership (including leasing for hunting or farming) are growing trends for affordable housing and wealth building.
- Family compounds and generational land ownership are emerging as ways to pool resources and build long-term wealth.
- Digital and remote work, including content creation and digital marketing, are viable income streams in an AI-disrupted job market.
- Emphasis on acquiring future-proof skills, especially those requiring human empathy, due to AI's rapid advancement.
- Broader Economic and Political Commentary:
- Both political parties are portrayed as serving billionaire interests, with little concern for working-class Americans.
- Corporate bailouts and forgiven PPP loans for large companies contrast with the financial struggles of ordinary people.
- The "Great Reset" and moves toward cashless systems are seen as efforts to increase control over individuals and perpetuate debt servitude.
- Wealth transfer from baby boomers to millennials is anticipated, but systemic pressures aim to suppress generational wealth building.
- Rising taxes and housing costs threaten older generations' ability to retain assets.
Step-by-Step Methodology for Handling Medical Debt Collections:
- Step 1: If you receive a medical debt collection notice, do not ignore it.
- Step 2: Send a debt validation letter via certified mail to the collection agency requesting proof of the debt and legal right to collect.
- Step 3: Avoid phone conversations with collectors; do not verify personal information or agree to anything verbally.
- Step 4: If the collector responds with a medical bill, send a second letter citing HIPAA violations, demanding removal of the debt from your credit report.
- Step 5: Monitor your credit report for changes and follow up as needed.
- Step 6: If disputes fail, consider consulting a consumer law attorney for further action.
Business Credit Setup Guidance:
- Choose an LLC business name that does not explicitly reveal a high-risk industry.
- Select low-risk industry codes to improve chances of credit approval.
- Use payroll services (e.g., ADP) to generate W-2 income for self-employed individuals.
- Establish health benefits and retirement plans through your business to enhance legitimacy.
- Regularly review and customize credit dispute letters if using credit repair systems.
Investment and Income Diversification Recommendations:
- Consider real estate investments via crowdfunding platforms or physical property.
- Explore alternative passive income streams like AI-powered vending machines.
- Evaluate purchasing raw land for farming, hunting leases, or green energy projects.
- Embrace digital entrepreneurship, including content creation and digital marketing.
- Acquire skills resilient to AI disruption, focusing on human empathy and healthcare.
Presenters / Sources
Category
Business and Finance