Archive for December, 2009
I just want to know if anybody here has gone through credit counseling services and if it worked for you.
I work as a Collections Coordinators….
I attended a credit seminar ….
These look bad for your credit…
These places offer a way for those who have overextended credit, sometimes things like this work.. Contact several reputable places, consult about the policy
Last year I had lost my job and got way behind in my bills. When I found a new job I decided to work with a debt management company to help with my debts. I’ve been with a company about five months and I’m starting to get calls from collectors almost every other day. I thought this company was helping me, but it seems to have made things worse. I decided to drop this company and just make arrangements with the original creditors to start making payments. From my personal view it’s better to work with the original creditors.
You are correct when you say it is better to work with the original creditors. My husband and I went with a service that settles you debt, well the settle it you had to wait for the debt to go into collections. The service was not good even though we did settle all of our bills and don’t owe anything, but our credit looks like crap because everything states "Settled for less than the amount owed". No one looks to highly on that. Also, there are some companies out there that if they find you are with a debt management company they will not work with you at all and tell you that you have to pay the amount in full for instance if you have a RaidoShack CC they will not work with you if you are with a debt management company. We went with Consumer Debt Intervention (don’t ever use them!) and a little FYI if you have to pay a debt management company then they are a bad company save your money and pay the creditors. Another FYI if you do settle your debts anything settled over $600 you have to pay taxes on, so watch out because that is considered extra income!
I fell behind on my credit cards when I had an emergency medical expense. Even though I have a steady job and income, they’ve raised the payments and dropped the limits so there’s no chance I’ll catch up. I want to do debt consolidation but most companies Google brings me are a scam. I know it ruins your credit, but 8 90+ past due accounts does that too. I’ve been unable to work out plans with them or find a second job. What is a reputable company?
For my debt issues I would go here: http://www.direct.gov.uk
They are extremely helpful and are a mine of Free relevant information about debt consolidation.
Another source of Free info
http://debt-help-debt.blogspot.com/
An older family member of mine has a large amount of credit card debt and their only major asset is the house that they currently live in. From what I’ve read it seems that creditors will liquidate all of their assets including the house in order to try and cover the debt upon their death.
One of their children wants to purchase the house or assume the mortgage from them now and become the new owner. If the house is sold/transferred in this manner and no longer belongs to my older family member with the large debt, will creditors try to come after her child upon her death?
The house is located in Florida.
They better transfer the house before the death of this individual because you are right they will come after the estate of the deceased.
If the child purchases the house from them the seller needs to keep the money out of the banking system otherwise that money would now be the asset. But I’m sure you already know that.
Once the person is deceased the only thing the child needs to do is open the letters send a copy of the death cert. (it doesn’t have to be certified unless they contact them and ask for one) and also include a note that says Deceased has no estate.
I’ve never after 2 1/2 yrs had any of my father in laws creditors write me again.
I know it’s time to hire a debt settlement company, since I don’t think I’ll be able to get out of my current situation by myself. (roughly $130,000 in debt… and counting). Are there any good debt settlement companies you would recommend?
Hey Janice,
Sorry to hear that you are in such a tough place.
The first thing you need to do is make sure you choose a debt settlement company that is TASC accredited. TASC stands for, The Association of Settlement Companies, requiring businesses to follow fair and specific practices and standards.
It’s also important to remember that all debt settlement and/or debt negotiation companies fees are slightly differently. Make sure that you fully understand how their fee process is set-up and you know what you are paying for. If a debt settlement company is unable to negotiation your debt they shouldn’t charge you a settlement fee.
When I got into financial trouble I enlisted the help of DMB Financial. They were very fair and worked with me to settle my debt. Overall I was very happy with their services. I was able to decrease the amount of debt I owed and pay it off in far less time than if I was trying to do it on my own. They discussed all their costs upfront, what to expect and helped me avoid filing for bankruptcy. I think the biggest relief is answering the phone without having to worry about it being an angry debt collector.
I’ve provided DMB’s link below so that you can access additional resources from their website. They are a really good company and really do help their customers get out of debt… and stay out of debt.
to pay them all off. I succeeded in getting them all paid off except for 1, which I’m still paying on. Now I want to get a new credit card for purposes of improving my credit (paying on time, etc.) Now that I’ve gone through credit counseling and a debt management program to reduce my debt, what is the best way to convince the major credit card companies to trust you again with a new card?
having credit cards is like playing with poisonous snakes……sooner or later,you will get bit.
history is a good teacher…..review your past habits and make a good decision here.
go to daveramsey.com and learn about debt-free living.
I have credit card debt that I am considering using a debt management Company. Any thoughts?
some of them charge fees to reconcile debts. You should services like Consumer Credit Credit in your area. This is a free, state and federally funded organization that will work with you and make a budget for you, but most importantly it’s FREE.
Im a 22 year old full time college student with a part time job. About three months ago I joined in charge debt solutions because I thought it would be easier for me to manage my credit card bills that way. However now after joining, I’m realizing that Im unable to keep up with the payments Im making to them. It’s like after my other bills and this payment are taken out every month, I hardly have any money left and I think I’ve put myself in a bind. If I leave the program now will this mess up my credit, will it make it harder for me to join a debt management program in the future, will my creditors be resistant to work things out with me in the future because of this? I simply just can’t afford to be in the program now.
If you get off of a DMP they stop paying the creditors. Unless you make specific arrangements with each creditor and pay them you will now become past due on your accounts again. Because of this the interest and late payments will start to be added again, and they will make collection calls to you.
You can always get back on a DMP, unless the creditors have sued you in court. Also if the creditor sold your account to a collection agency, these agencies may or may not participate in the program.
Since you say you "hardly" have any money left after your bills and this payment, it might be good to just tough it out. One thing you may want to do is take a very hard look at your budget. Determine what is essential and what is optional to see if you can free up some money. If you do a lot in entertainment(such as going to movies or eating out) you may have to stop those for a while.
One last option is to consider bankruptcy. It will effect your credit for a while, but if you practice good credit managment after the bankruptcy it can help.
I am not looking to consolidate my debt. I am not looking to declare bankruptcy. I am interested in negotiating down my debt however.
Dave Ramsey’s plan is the only way to go. It’s hard work but it does work. Read his books listen to the radioshow/podcast, and take it one day at a time
Can anyone tell me about debt consolidation companies and their services?
Sometimes, people have a lot of different creditors to pay. For example, multiple credit cards, car loans, lines of credit, etc. debt consolidation companies will pay off these creditors and consolidate it all into one bill, sometimes lowering your payments once everything is consolidated.
This can be a useful service for those who are disciplined enough not to rack up more debt once they do a consolidation of existing debt.