Many people want a path to follow but need a strong desire to accomplish the goal. Knowledge is but a small part of the process, motivation is necessary. There are numerous books with the secret of getting out of debt(spend less than you earn). The motivation to sacrifice is hard to find.

I don't see anything wrong with someone consolidating information and presenting it in easy-to-use form. I personally don't like the way they market it, like they have some huge secret that only they know, but this is a common marketing technique. Doesn't make it a scam.

What counselling are you referring to? I'm curious, because they tried calling me a dozen times, we exchanged voice mail twice, then they gave up. I assumed that was a sales call to sell me more stuff. Is that what you found?

I hate this even more than #1, and it sounds like you do too. But it doesn't make it a scam. You just tell them you're not interested.

I paid around $40 as I remember, and I did not know about the snowball technique prior to the purchase. I can say without a doubt that it was well worth the money, finding that one simple nugget of information. And there were a ton of other tidbits concerning many financial aspects, not just debt reduction. It seemed like a good deal to me.

I will agree that as time goes on, forums like this one become more valuable than purchasing a program like this. Still, many enjoy the ability to buy a CD and listen to it during a commute. There will always be a market for this type of thing.

I just want to share my experience and opinion about this product (Transforming Debt into Wealth).
I bought it intrigued by a claim that they made on their promotion site. They say that using their method they can save $1985 by paying $100 a month instead of $50, on a $2000 debt at 18%, or $2268 by paying $150 monthly.
That is plainly untrue. All they save is $700 (or $950 in the case of $150 payments) which clearly is what the additional payment would yield at 18% until the debt is repaid (plain math).
I read their program and it reveals nothing new. I'm sure it can be useful to someone completely clueless about finance, for which there is apparently great need. However, starting from that false claim, I found myself without recourse. The only contact they have on the site is a chat window and they simply repeat their mantras and do not address any complaints. Their claim that you can have twice your money back after a year is so full of conditions that nobody will attempt to recover. Besides their approval is the ultimate condition and you can be sure you will never get it.
All that, in my view, makes it a SCAM.
(I should have known better and consulted this forum beforehand)

Hitchman, I'm guessing they are comparing the $100 a month against paying the minimum payment, which starts at $50, right? The key to make their math work is to assume you always pay the minimum. After a few months, the minimum is no longer $50. It drops to $49, then later to $48, and so on, drastically stretching out the payment plan. September of 2026 is when this card would be paid off if you started this month and always paid the minimum. That's over 17 years to pay off a $2000 debt! In their example, the minimum payment is 2.5% of the balance for any given month ($50 / $2000), and I've further assumed a minimum payment of $10 (in other words, if 2.5% of the balance is less than $10, pay $10 anyway). Total payments in this scenario is $4484, compared to $2364 with the constant $100 payment. You would save significantly if you paid a constant $50 per month as well - total would be $3048. But unfortunately, most people read their statement each month, and pay the minimum as suggested by the friendly card company.

It is precisely this minimum payment calculation trick, coupled with people's propensity to only pay the minimum, that is the "engine" keeping these card companies rich and the typical consumer in debt for a lifetime.

If anybody is interested, I've generated the entire payment schedule for the $2000/18% credit card debt using DueMinder.com, and have included the full report on my blog here:

17 Years to Pay Off $2000?

The payment schedule shows that paying just the minimum in this example results in a 17 year payment plan, versus 2 years committing to $100 per month. I am not necessarily advocating Commutta, in fact his is just one of 4 programs I've seen that recommend the snowballing payment strategy. Dave Ramsey's is one of the others. And of course DueMinder uses this strategy in its software, which is free of charge.

I don't think there's anything wrong with Commuta selling his program, or Ramsey selling his book and services. They provide the "motivational" aspect above just teaching the strategy. The overall value could not be more clear based on this example.

Ramsey's program is much, much better and is NOT a ripoff like Commuta's. I still think Commuta's is a scam--he is just trying to get more money from people he already knows aren't good with money.

Well, I would agree that Dave Ramsey does a better service to consumers, simply because his system is more public. You can go to his web-site and read about the debt snowball payment strategy:

Dave Ramsey's debt snowball plan - a great way to get out of debt

Commutta, on the other hand, treats this as the mysterious secret sauce, and tries to get you to pay before revealing it.

Still, if somebody has never heard of this strategy, and is unfamiliar with the basic exploitation of credit card companies over consumers, then the Commutta program is very revealing and worth every penny.

Commuta's plan I suggest leaving well alone. I paid for the 1st two segments (about $70) and decided not to pursue it. I called for a refund (Derek at 1 866 438 6061 x 5016) and was told that in order to receive it, I needed to try out the program for up to a year, and then apply for this refund. Another scam!
I wish there was some recourse in these instances. Buyer beware!!

I wonder if there are different channels you can use to purchase this program? I bought it on line about 1.5 years ago, for around $40. I see that it is still available for $40, but maybe there are other channels that cost more? I've seen several people say they've spent much, more than $40. Here's the link I'm talking about:

John Cummuta - Debt To Wealth

Sure. Everyone's got 55 - 80K in equity these days. Maybe I should start a "pay it forward" website where everyone can contribute money to my equity! Come on...get serious.

There is even a better way. Go see the7thfire . com - debt elimination

Jackson

This program seems a little shady...something just doesn't feel right about it. The input thus far has given a pretty good deal of insight about it but not really too much concrete info. I was struggling with debt but found relief from free federal grants that I didn't have to pay back. If this program seems like too big of a step I would highly suggest you try what I did. There's no fee for applying, you just need to pay the shipping fee for the application. If you want any more info on it please read my blog in my sig. If you have questions please PM me! Debt is very serious and there's relief money waiting for those of you with debt problems.

Yeah, I agree. It is definitely a scam.

You do not need his program or anything else you only need to admit you have spending problem, create a budget, and stick to it. If you need help checkout my website.

I am beginning to think I should start selling a debt elimination program. Unfortunately I am still way to honest. Check the site it is free although maybe one day I will decided to sell debt coaching services.