Archive for October, 2009
What can consumers do to get credit in todays world? A critical piece is knowing about your FICO® score, how it works, and how to make sure yours is the best it can be. Fair Isaac is helping consumers through a program that delivers FICO® scores free as part of online banking statements, and free information presented at www.myfico.com. Find out more in this short video from FICO™, the creators of the FICO® score that is used in most lending decisions in the U.S. Darcy Sullivan of FICO™ interviews Mark Greene, FICO™ CEO, for this FICO Tech Talk.
Duration : 0:3:5
Christian debt counseling offers quality counseling on credit and debt management. Their experts work with your creditors to get your payments and interest rates reduced. They then combine your debt into a single, affordable monthly payment. If your debt is out-of-control, contact Christian Debt Counseling today.
Visit us http://www.yellowpages.com/info-22066453/Christian-Debt-Counseling?from=youtb
Duration : 0:1:11
Revision 
I recently heard on radio about a debt free program. They officially negotiate on your behalf with the credit card companies. What may be the Cons? Is it safe to rely on debt settlement Program to free from one’s credit card debts? How may it affect one’s credit score?
Do not fall for these debt consolidation scams. The debt will still be there and also are your spending habits that got you there in the first place. You won’t get yourself out of debt by borrowing. The only true way to get out of debt is to change your habits. One way is to get yourself enrolled in a good debt reduction program. There are many good ones to choose from. Sometimes it can be hard to choose the best one for you. You can visit the web site below for reviews of some of the best ones.
I am entering into a debt management program with a credit counseling company. I have about $17500 in debt & my payment with the company would be about $400 a month.
My question is, would creditors be willing to accept 1/2 of the minimum balance that is due usually…I have 3 cards I’m in debt with…one is $285/month, $185/month, $165/month. I’m already 2 payments behind with 2 of the cards. Would the credit card companies accept a personal offer of 1/2 the usual minimum for a certain time frame? So I’d offer them $142.50, $92.50, $82.50.
Or since I’m already behind on payments should I stick with the debt management program (I just signed on with them & have to make my first payment on 9/28) & wait until I’ve been in the program a few months & then try to talk personally to my creditors & see what I can offer at that time??
I work for a pretty large global bank. I would stick with the CCCS program if I were you. I have worked in several areas such as auto loans, corporate/business credit cards, private label cards, co-branded cards, unsecured lines of credit, etc. There are hardship programs out there for banks to offer you, but I don’t know if it would cut your payment in half, if it did…It wouldn’t be a very long term plan. Many hardship programs are not for the life of loan/balance. The revenue comes from finance charges and late fees, which many banks do not want to part with, but all banks are different. Keep in mind, these CCCS companies have working relationships with these banks and usually get you a decent deal. Just make sure you are not signed up with a debt settlement company….Chances are, you’ll get sued.
It depends on how bad you are now.
Consolidating means creating a whole new loan for a longer period of time. This would hopefully lower your payments enough so you can get back on track, in this case it might SAVE your credit score.
A credit counselor will give you some tools and suggestions for reducing your payments, just keep an eye on what the % are, you want it to be lower than what you pay now.
However, debt consolidation can be nothing more than a way of putting off the evitable. It really does little to correct the problem. That’s why many people come back to debt negotiation as a way of getting out of their financial problems and starting fresh start.
More here: http://finance.ebookorama.com
I have been in a debt management program with a local credit counseling service for about 8 months. My parents have offered to co-sign a loan so I can pay off the cards. The loan with the bank is a lower interest rate than the cards and will pay them off faster with a lower payment each month. Should I pay the cards directly or go through the credit counseling service? Which is better for my credit score?
The Credit Counseling company will probably get you a better price in the long run because they will negotiate a lower rate than you can. But, you are being charged a very large amount of compounded interest on every dollar that you owe them for every Month that the amount is owed. Let Mom and Dad help IF the interest rate and terms are better than you are currently paying the credit card companies. And, if you can afford to pay all of your bills iccluding that payment. Remember that the credit counselor is making money on you, they will not always counsel you to your advantage.
So I owe about 12000 in debt for credit cards, the accounts are in a debt consolation company which I’m paying about 400 a month to clear the debt, I recently came into $8000.00 and I want close the accounts and pay them all off. IS there a way I can negioate with the creditors to lower my balances since I’m paying it off?
Generally if you are current, companies will not settle on the account. You actually have to be behind before they start to make arrangements. Since you are on a program currently you are considered current so they probably will not accept a settlement. However, there is nothing that says you can not ask and see what they will do.
If you do get them to settle for less, any amount over $600 you will receive a 1099-C and it is considered unearned income. So if you had a $5,000 debt and they settled for $4,000 you would owe taxes on the $1,000
You might be better off to pay off as many of the accounts you can with the $8,000. Then continue to pay the $400 a month on the remaing cards. Since you have less cards you will be paying more on each one so those amounts will go down faster.
I have a few credit card that are past due and I’m not able to make the payments.
What is the best debt consolidation company to use?
Keep in mind, I’m not a home owner.
I’m not a student and actually I’m looking for a better answer than the obvious budget and make more money.
Stay away from any that charge a fee.
Most if not all of these companies will trash your credit.
What they do is not pay your creditors for months and then try and settle for less under the threat of bankruptcy. No special skills. They just don’t pay.
Your creditors do not have to deal with these people because it is your debt.
Also, If they don’t pay you creditors. You, and you alone are still responsible for the debt. Your creditors will sue you and not the company you hire.