Archive for November, 2009
DMCC featured on Close-Up TV NEWS
Some of the principles behind consolidating your debt explained.
Duration : 0:3:29
http://www.FreeDebtExam.com
http://www.Debt-Professor.com
The power of compound interest. This is why it’s so hard to get out of credit card debt. If you want free help, take the Free Debt Exam at http://www.FreeDebtExam.com
Duration : 0:3:10
I’m so worried about getting screwed by an incompetent company. Also, I checked with Debtmerica and they’re trying to charge me a 15% fee to do the debt negotiation. I’ve checked with a few other places too and somebody recommended going with an attorney-based debt settlement company to get better results. Any help would be appreciated.
I’ve recently looked up some debt settlement companies for my sister so let me give you a little info:
1) Always ask if the company is a member of TASC (The association of Settlement Companies) They are the Better Business Bureau of Settlement companies and make sure these companies are operating within compliance regulations.
2) Always ask how much it costs. Usually there’s a setup fee, a servicing fee, and a negotiation fee. The setup fee will usually range from $100-$200. The servicing fee can go anywhere from $70-$10/month. The negotiation fee ranges from 8%-15%.
3) It would definitely behoove you to check out any attorney or attorney-based company to handle all your debt settlement as they are stricter on compliance guidelines.
Try going to: www.tascsite.org and looking up some companies.
A good blog I read: http://iclosem.wordpress.com has some great articles on debt settlement. I would definitely look into that.
I was listening to the Howard Stern show the other day and it looks like KC armstrong just signed up for debt settlement with this company called Envision Debt Solutions (www.envisiondebtsolutions.com). I ended up sending my sister there as they answered all my questions right. They have an 8% retainer fee (since they’re an attorney based company) and all the contracts you sign are with the attorneys. They were actually very courteous and professional and guided my sister through the whole process. Give them a call at: 800-515-9603
Debt management saves thousands, The payoff time is 2 years less. The credit counseling actual time is greater than if I tried myself. Should I just try to negotiate with the credit card companies?
Ask yourself this…does my problem stem from the inability to afford my debt (credit counseling) or does it stem from the inability to both afford and manage my debt (debt management). Once you figure that out, you will know the answer.
Neither will affect your credit tremendously like bankrupcy would do. It largely depends on the services you use and how they report to the credit bureaus.
Try negotiating with the credit card companies first-most often they will lower your rates if asked (if you have a decent repayment history) or if you threaten to take your accounts elsewhere.
Good luck!
it strikes me as odd that people think these companies actually help them…you as a consumer can do anything that debt management companies can do on your own.. As a collector, I understand that bad things happen to good people and they cannot get out from under debt..what a lot of people don’t realize is that turning to a debt management company can hurt you even more…by stop making payments on your accounts and let them handle the account is not the way to go…if you are only 30 days behind and they tell you to stop paying because they want to wait until you’ve saved up enough to settle, this is damaging to your credit because the acct has probably charged off by the time you settle….yeah you may pay less but, you can negotiate with creditors yourself and most of the time prevent the charge off..and not pay a fee…remember, no such thing as not for profit..always someone trying to make a buck!!!
You are 100% correct. As a licensed mortgage consultant, I see credit from A++++++++ to F. The one major thing that keeps people from getting a loan is consumer credit counseling/debt management. I have had customers with A+ credit get denied because they have been in debt management in the last two years. They are scams, they tell you not to pay your payments and then negotiate down the fees and interest on your behalf and pocket the difference and never tell you this. They are getting rich off of things you can do yourself. Good credit is your best friend, do everything you can to keep it clean of debt management companies.
Can you tell me who owns and runs the collection agencies and debt management programs? Are they owned by the banks and credit card issuers?
I can buy an unpaid contract from anybody and then try to collect on it. That’s what the "or successors" means in the agreement…it can be transferred to somebody else.
A lot of times the owner is a lawyer, because he doesn’t have to hire a lawyer to take you to court; he can do it himself.
I have about $8000 in CC debt and I have not been able in to make my payments in over a year due to lack of work and the amount of money I make. Can I still use a credit counseling service or would bankrupcy be the better choice? One of my CC is past collection and being taken to court, would counseling help or is bankrupcy the only choice?
You can always look into a Debt Managment Type program. Check with the NFCC, National Foundation of Credit Counseling for an agency that is certified. Additonally you want to make sure they are registered with the BBB and certified for debt managment in your state. The biggest thing is not to be scammed by a debt relief agency/debt consolidation agency who makes promises of settling the debt for you.
You may not qualify for a debt management program, but they should all provide an assessment for free to let you know. Basically, to qualify for a debt management, you need to be able to take care of your priorities (housing, essential utilities, food) and also to make a payment to the debt managment program.
Most will work with debts even in collections. The problem is how far in the legal process this has taken. You may want to repsond to the summons and complaint and try to set up a payment plan, rather than be granted a default judgement and then be garnished. Once you have a payment arrangment to avoid garnishment, the credit counselor should be able to work with this.
Bankruptcy is also an option for people, but with only 8k in debt, I’d hustle and work this out on your own. I hope this helps, I with you the best.
I am in dire need of a debt consolidation loan and I have bad credit. I can make things work with $5000, but I do not know where to start. I have seen people with yahoo addresses claiming they can loan money but they sound fishy as it is not a company email, their emails always seem to be yahoo. Any info will help. I fell on hard times and am now able to pay my monthly bills but I cant seem to catch up what I fell behind on. PLEASE help asap. I have a 5yr old and I do not want him to suffer us loosing our home or car.
Debt consolidation is an option, and you should look into it. Just be careful about WHAT you’re getting into. Some plans, because of their higher APR rates get you into more trouble than you were.
Also, some lenders look poorly upon it later on. Some institutions believe that it really is a black mark. It will depend upon the types of deals that your particular company or lender work out, and of course, your own individual circumstance. For some with absolutely NO way out, debt consolidation is a welcome option.
Take a good hard look at all the options and plans offered, and don’t let a single company pressure you into something you just can’t do. Make sure that you’re comfortable with the plan offered before you commit to it.
In any case, it doesn’t hurt to investigate debt consolidation as an option. It doesn’t cost you anything to find out more information about it.
If you want a place to start your investigating, there’s information and listings for debt consolidation providers on the page listed below. You’ll probably find something of use there:
http://axalda.info/debt-consolidation.html
I’ve heard of companies like cureadebt.com that will settle your credit card debts for 70% of the amount owed. I’ve also heard of government grants to pay unsecured debt(credit cards), but I don’t know where to get the info on them. I’m considering a second mortgage to pay these off with a lower interest rate. Thoughts?
We no longer use credit cards, so the balance only increases because of high interest rates.
Transfer your current credit card balance to an interest free card. This usually gives 9 months to pay off. Make paying off the debt your main priority above everything else. If you have balance at the end of the 9 months on the said card, transfer to another of the same free interest.By the way the credit card should not be used for any more purchases whatever. The sole purpose is to pay over all monies owing